Data Dereg could mean tax hits.(if cable modem services are classified as data services not regulated with cable television services, new taxes might be imposed)

Multichannel News, February, 2002 by Hearn, Ted

WASHINGTON - Escaping government regulation of its high-speed Internet access business might carry a price for the cable industry in the form of new taxes at local and federal levels. In March, the Federal Communications Commission is expected to classify cable Internet as an information service.

Historically, the agency has not regulated information service providers. For cable, that would mean that MSOs would not be required to carry unaffiliated Internet service providers. Victory on the access issue, though, could result in a clash with local governments worried that cable operators might refuse to pay franchise fees on information services. Many operators today pay franchise fees on cable-modem revenue under the assumption that high-speed access...

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