I'd like to know if "they" really don't know, or simply someone(s) were tasked to come up with some arguments and those in power really don't care how accurate it is or not.
But broadband ISPs sort of operate as both and neither. You can call them either an information service or a telecommunication service depending on how you view them. But there are problems with both labels.
Which led the FCC labeling cable broadband an info service and DSL a telecommunication service. That ruined the DSL market in the USA until the FCC decided to label all ISPs as information services.
In 2015, the FCC switched back to telecommunication service because they lacked the power to apply net neutrality to an info service.
Really, we need a new regulatory scheme, but good luck getting that through congress.
Title II also prevented telecoms from replacing DSL with fiber lines that could do all of that. After Title II ended, AT&T and Verizon suddenly poured money into Fiber.
It's important to note that even the Obama era FCC didn't want Title II actually applied. They just used it to get net neutrality. They suspended almost all other Title II rules.
In 2015 it was added back, but with almost all Title II rules suspended. Like price controls, unbundling, reselling, etc.