Senator Tom Udall, Democrat from New Mexico, described reclassification of broadband access services as one clear path to ensuring an open Internet. Maybe the esteemed senator has been inspired by the sunny skies, and mild, semiarid climate of his great state to give such a ringing endorsement of reclassification.

I, on the other hand, see reclassification as a dusty trail upon which industry would have to navigate through the high plateaus, mesas, mountain ranges, and canyons that New Mexico is also known for. Reclassification, like any additional regulation, invites that great regulatory mountain lion, uncertainty, into the environment.

For example, how broadband access service is viewed in terms of its use has been determined by the consumer. Consumers don’t look at broadband as telecommunications.  Telecommunications is for making telephone calls; two-way conversation. Consumers view Internet access as a way to get information electronically and don’t expect a conversation when getting that data.

Treating broadband access like telephone service introduces rate regulation on both the federal and state level. Decisions will have to be made on whether a broadband access pipe should receive price cap treatment or rate of return treatment. Broadband access lines will now be subject to subscriber line charges, the payment for the privilege of accessing long distance services.

On the federal and state levels, the issue of interstate and intrastate compensation will have to be addressed. How will carriers bill each other for Internet traffic received and handed off to end users? Will the states simply let this new funding stream for their universal service programs slip through their fingers?

On the local level, municipal governments may now view broadband access lines as fair game for the application gross receipt tax . Other utility charges may apply as well. If we believe that local and state governments will not find an excuse to apply additional taxes, especially as their budgets are subjected to fewer revenues, think again.

No, Senator Udall.  Reclassification is not a clear path.  If anything, it’s a drive along a mountain road where one wrong turn can send you into a canyon.