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ISPs Rush to Defend Protectionist State Broadband Laws

As we noted recently, two different cities with their own broadband networks (Wilson, NC and Chattanooga, Tennessee) have formally asked the FCC to declare that laws in their states hindering community broadband aren't enforceable, giving FCC boss Tom Wheeler the perfect opportunity to back up claims that he'd take action. Such bills are written and lobbied for by companies like Comcast, AT&T and Time Warner Cable, and often restrict local citizen rights to determine for themselves what the best course of action for their community is.

To get the bureaucratic ball rolling, the FCC recently formally issued a public notice (pdf) asking for public and corporate comment on their intervention when it comes to such protectionist laws.

Not too surprisingly, the ISPs that have literally written and benefit from such laws would prefer it if the FCC didn't do this. In a blog post USTelecom, a group spearheaded by AT&T, Verizon and others, insists that the FCC has "no standing" to pre-empt these laws, while also arguing that the "mixed record" of municipal broadband efforts is cause for concern:
quote:
The success of public broadband is a mixed record, with numerous examples of failures — from St. Cloud, Fla. and Groton City, Conn., to Philadelphia and the Utah Telecommunications Open Infrastructure Agency (“UTOPIA”). With state taxpayers on the financial hook when a municipal broadband network goes under, it is entirely reasonable for state legislatures to be cautious in limiting or even prohibiting that activity.
Granted municipal broadband supporters would argue that even after receiving billions in subsidies, the private sector has a "mixed record" of its own in terms of providing fast, affordable broadband -- the only reason cities and towns are exploring these options to begin with. Large ISPs (who only appear comfortable talking attacking this issue via proxy groups and third party think tanks), have also threatened to file a lawsuit against the FCC should the agency move forward to pre-empt these state blockades.

Most recommended from 58 comments


Mr Matt
join:2008-01-29
Eustis, FL

7 recommendations

Mr Matt

Member

Instant replay of rural electrification in the thirties.

In the thirties the federal government wanted to deliver electric power to rural areas. The power cartels behaved like the ISP's currently do, cherry pick geographical areas and ignore areas with low population density. The power companies fought tooth and nail with the Tennessee Valley Authority to prevent the government from wiring rural America. FDR put his foot down and told the power cartel to F. O. Otherwise farmers would still be using kerosine lamps and wood stoves. The City of Leesburg and Mount Dora, Florida both have their own city owned power distribution systems and their own power plants many years ago. No reason why cities cannot run a broadband network except that many ISP's are pigs.
totalradio
join:2007-09-15
El Dorado, AR

6 recommendations

totalradio

Member

A quandry...

This is an issue that I'm stuck on. Being a retired CenturyTel employee (now CenturyLink), I can see where Comcast, CenturyLink, et al, would be worried about this type of competition. But I also look at the consumer side of the argument, and based on what I've read here over the years, I tend to lean on the side of municipalities.

If a company (pick one) for whatever reason, doesn't want to upgrade, serve, or provide adequate service to its customers, I see no reason why cities & counties couldn't step in and do it. There are cities that have their own power, gas and/or water companies, and they seem to do quite well.

Using tax dollars to provide a community with broadband, is an issue of those taxpayers. If it's done right (que sarcasm), then a city should be able to at least break even or even turn a tidy profit, and I don't have a problem with cities turning a profit in this instance. 30 years ago, you probably couldn't made a case for it, but today, business MUST have the internet, in order to DO business. Not to mention individuals who MUST have the internet to do their work (work at home, that sort of thing). With that said, cities & counties MUST be very careful in how they fund these projects and if it should go under, protect the taxpayers from a God awful fate, because I know damn well this isn't a cheap endevour

To places like Wilson, North Carolina, Chattanooga, Tennessee (a great city to visit), and others who might be kicking this can around, I'd say...pull the damn trigger and do it. Who knows, we all might learn something !

There IS a right way to do it and places such as Wilson & Chattanooga may have found a way to do it...RIGHT !


TechyDad
Premium Member
join:2001-07-13
USA

3 recommendations

TechyDad

Premium Member

Private ISPs Don't Have A 'Mixed Record'...

... Because they, apparently, get to decide what qualifies as success.

"We promise to use this taxpayer money we're being given to provide high speed, wired broadband across the entire state."

Years later: "We're decided that expensive wireless/mobile Internet access fulfills our commitment instead of building out fiber like we promised. Mission Accomplished!"

telcodad
MVM
join:2011-09-16
Lincroft, NJ

2 recommendations

telcodad

MVM

AT&T wants tax incentives and state laws that protect it from competition

An article just posted on the Ars Technica site:

AT&T: Cities should never offer Internet service where ISPs already do or might later
AT&T wants tax incentives and state laws that protect it from competition.
By Jon Brodkin, Ars Technica - September 2, 2014
»arstechnica.com/business ··· t-later/
rfrooney
join:2006-02-26
Antioch, TN

2 recommendations

rfrooney

Member

Imagine, if you will, a world...

Where Ford was the only auto manufacturer allowed to sell in your state. How much would a car cost?

Where Shell was the only gas allowed. How much would gas cost?

Where McDonald's is the only restaurant. How much for a Big Mac?

Do you see where I am going? Monopolies only benefit the owners. Competition is the lifeblood of commerce.

battleop
join:2005-09-28
00000

2 recommendations

battleop

Member

Continued attack on small business.

It's great as long as you are not in EPB's sights. If you are in a business that competes with EPB watch out because they are going to use their advantage as a government financed business to put you out of business. The government should NEVER EVER be in the business of putting locally owned and operated businesses out of business.

Computer Repair
Networking
PBX
Hosted PBX
Colocation
Web & Email Hosting

They should be in none of the above businesses but they are.