21 Laws States Use to Crush Broadband Competition
This week (Jan 2015), President Obama said that he would direct the Federal Communications Commission to help cities that want to build their own broadband networks navigate or completely ignore state laws in 21 states that make it difficult or, in some cases, illegal to create networks or sell internet service to their citizens.
Well, he said 19, but there are 21 with restrictions. It's an important move, if not a shift in policy. Last year, the FCC said that it would help cities navigate the process of pre-empting (essentially ignoring) state laws, and two cities—Wilson, North Carolina and Chattanooga, Tennessee—have already filed official petitions, which are still pending. But the president actually going on the record certainly doesn't hurt, and Obama says that he's actually starting a new initiative to create further projects, which is welcome news: Municipally owned networks have proven to be popular, extremely fast, and quite cheap.
But what the heck are these laws he's talking about? And how did they come into play in the first place? The specifics in each state are hard to dig up, but,
in many cases, the laws were lobbied for by cable companies (called "incumbents" in broadband circles) to kill local competition.
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The general rhetoric behind these laws, from the incumbents, is that cities are too incompetent to run their own networks, so it's a risk to taxpayers," Craig Settles, a broadband consultant who works with cities to create municipal networks told me. "
But then, the other side of it is that cities are so competent that they represent unfair competition."