Yesterday in the Wall Street Journal, George Gilder commented on the new tactics being developed by the Federal Communications Commission to regulate the Internet. Akin to the failed attempt to force cap-and-trade through Congress last year, Washington is now seeking to use a government agency to circumvent voters and manipulate access to broadband.

According to the New York Times and FCC officials briefed on the plan, the commission’s recommendations will include a subsidy for Internet providers to wire rural parts of the country now without access, “a controversial auction of some broadcast spectrum to free up space for wireless devices, and the development of a new universal set-top box that connects to the Internet and cable service.”

In addition, “the effort will influence billions of dollars in federal spending, although the FCC will argue that the plan should pay for itself through the spectrum auctions. Some recommendations will require Congressional action and industry support, and will affect users only years from now.”

The FCC claims that the government must take charge in providing Internet access to all Americans and points to abuses by telecom carriers for the lack of coverage and expansion. But as Mr. Gilder noted, the U.S. has the lead in broadband investment and growth since 2001, largely because of deregulation and opportunities for innovation. He notes:

Since 2001, on both the federal and state levels, the U.S. has led the world in telecom deregulation. With business investment flooding into this arena, the U.S. has accomplished a broadband miracle, with residential bandwidth up 54 fold, wireless bandwidth to consumers up 542 fold. With some $4 trillion in investment in information infrastructure and software since the crash of 2000, including nearly $500 billion in 2008, the U.S. has moved from the back of the pack in broadband Internet to world leadership in Internet bandwidth and commerce.

With the government stepping in to regulate and tax the Internet’s expansion, the FCC is risking American innovation, and ultimately access. This has already taken effect following the proposed capital gains taxes. As Mr. Gilder noted, “overall investment in information technology is down some 12% since 2008, IPOs languish, and venture capital is drying up.”

If the government imposes regulations and mandates on the telecommunication industry, investors will flee and innovation will collapse. We should then expect a call from the Left that private industry has failed and full-on government management of the nation’s Internet infrastructure is in order. Instead, let’s keep the Internet free from regulation and allow the free market to continue one of the best success stories of the past twenty years.