Big Telecoms Strangling Municipal Broadband, FCC Intervention May Provide Relief 204
MojoKid writes: With limited choice and often dismal upstream speeds, it's no wonder many people are excited to hear that newcomers like Google Fiber are expanding super-fast gigabit internet across the country. But some Americans also have access to other high-speed fiber internet options that compete with the big guys like Comcast and Time Warner Cable: municipal internet. In the case of the small town of Wilson, NC, town officials first approached Time Warner Cable and Embarq, requesting faster Internet access for their residents and businesses. Both companies, likely not seeing a need to "waste" resources on a town of just 47,000 residents, rebuffed their demands. So what did Wilson do? It spent $28 million dollars to build its own high-speed Internet network, Greenlight, for its residents, offering faster speeds and lower prices than what the big guys could offer. And wouldn't you know it; that finally got the big telecoms to respond.
However, the response wasn't to build-out infrastructure in Wilson or compete on price; it was to try and kill municipal broadband efforts altogether in NC, citing unfair competition. NC's governor at the time, Bev Perdue, had the opportunity to veto the House bill that was introduced, but instead allowed it to become law. However, a new report indicates that the FCC is prepared to side with these smaller towns that ran into roadblocks deploying and maintaining their own high-speed Internet networks. The two towns in question include aforementioned Wilson, and Chattanooga, TN. Action by the FCC would effectively strike down the laws — like those that strangle Greenlight in Wilson — which prevent cities from undercutting established players on price. The FCC is also expected to propose regulating internet service as a utility later this week.
However, the response wasn't to build-out infrastructure in Wilson or compete on price; it was to try and kill municipal broadband efforts altogether in NC, citing unfair competition. NC's governor at the time, Bev Perdue, had the opportunity to veto the House bill that was introduced, but instead allowed it to become law. However, a new report indicates that the FCC is prepared to side with these smaller towns that ran into roadblocks deploying and maintaining their own high-speed Internet networks. The two towns in question include aforementioned Wilson, and Chattanooga, TN. Action by the FCC would effectively strike down the laws — like those that strangle Greenlight in Wilson — which prevent cities from undercutting established players on price. The FCC is also expected to propose regulating internet service as a utility later this week.
