The Federal Communications Commission announced today that it had done as many (including those of us at CheapInternet.com) wanted, and struck down an array of state and local laws that inhibit or prohibit municipal broadband networks. In the words of our illustrious Vice President, “This is bleepin’ big!”
The 3-2 FCC vote eliminates state-based restrictions on municipal networks in Chattanooga, Tennessee and Wilson, North Carolina. Not only will they now be allowed to extend their high-quality Internet service to nearby areas, but most observers believe dozens — perhaps hundreds — of additional cities will begin investigating and building fiber networks and offering services to their citizens. Considering that the big cable television providers traditionally top lists of “most hated companies,” this should come as no surprise.
Although we’re pleasantly surprised by the vote, we’re also torn by it. On one hand, we’re strict Constitutionalists who think the federal government should leave the states alone to make their own laws. On the other hand, the huge cable television companies have distorted the internet service marketplace by throwing open their wallets and spending tens of millions of dollars on expensive lobbyists and political campaign contributions to assure that their monopolies continue.
“Cable companies lost their bet that millions spent on lobbying to stifle competition was a wiser investment than extending high-quality Internet to our nation’s entrepreneurs, students and rural families,” noted Christopher Mitchell, Director of Community Broadband Networks at the Institute for Local Self-Reliance. “…allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come.”
Overturned by the FCC decision were arcane regulations and exorbitant taxes designed to inhibit or prohibit municipal broadband networks in twenty states. Were the laws and taxes passed as a result of checkbook campaigning on the part of Comcast, Time Warner and other large cable television companies? The answer seems clear to us, but you’re free to reach your own conclusions.
It is expected that dozens — perhaps hundreds — of communities across the nation will note this decision and begin planning their own municipal broadband networks.
Supporters of the decision believe residents will benefit from municipal broadband networks for a number of reasons:
- Muni broadband networks will help create thousands of new, local private sector jobs.
- Muni broadband networks help consumers by offering competitive pricing.
- Muni broadband networks will offer higher speed Internet and stimulate the growth of local business activity.
- Muni broadband networks are supported by voters across the political spectrum.
- Muni broadband networks provide local schools with superior internet service
Cities such as Wilson and Chattanooga protested their state’s prohibitive laws because their citizens do not have enough choices when it comes to internet service providers. In fact, according to the Washington Post, “More than half of Americans have only one choice of Internet provider at speeds of 25 megabits per second — the basic threshold for high-speed Internet under a new definition approved by the FCC last month.”
There’s no doubt about it — this decision is very good news for the average American consumer. But let’s be cautious and hope this is where the landmark decision ends, rather than the moment that excessive federal government intervention begins.
h/t for quotes: MuniNetworks.org
SO says
I used to have a computer, until it got hacked into by a state worker, hired by the Department of Age & Disability (DADS)/Amerigroup (HMO). I’m homebound/ disabled/senior and I got a whopping big bill for my cell phone from verizon &149.00 & Verizon Wireless $49.00, totaling over $200.000! And I don’t have cable TV, or even the use of a landline phone,! I’m paying $200 just for a cell phone! I’m Medicaid, Medicare, Section 8 and on food stamps! I brought the laptop to be fixed and they stole the motherboard out of it! It was worth $5,000.00 and was given to me so I could study for my doctorate. The cell phone also was given to me, I can’t afford Verizon anymore and the only other cable company is Charter! They start off cheap, and then hike the price up the next year! Can you please help me?