Cities Challenge State Laws in FCC Push for Municipal Broadband Expansion
The Battle for Local Internet Choice Heats Up
Cities like Chattanooga, Tennessee, and Wilson, North Carolina are leading a growing movement to expand municipal broadband networks. These communities recently escalated their efforts by filing formal petitions with the Federal Communications Commission (FCC), urging the agency to overturn state laws that limit their ability to provide broadband services beyond their immediate territories. This development, reported by the Institute for Local Self-Reliance, marks a critical moment in the national debate over internet access.
Understanding Municipal Broadband Networks
Municipal broadband refers to locally-owned internet infrastructure operated by city governments rather than private corporations. These networks offer:
- Competitive pricing
- Faster speeds (Chattanooga delivers 1 gigabit per second)
- Greater local control over service quality
Political Showdown Over Internet Access
The issue has become increasingly politicized:
- House Republicans recently passed legislation (sponsored by Rep. Marsha Blackburn) to block FCC intervention in state broadband laws
- The measure was attached to the Financial Services appropriations bill
- While approved by the House, it faces likely veto from President Obama, who appointed FCC Chairman Tom Wheeler
FCC Chairman Takes a Stand
Tom Wheeler has been vocal about supporting municipal broadband:
“I believe the FCC has the power – and I intend to exercise that power – to preempt state laws that ban competition from community broadband,” Wheeler stated at an April meeting of the National Cable & Telecommunications Association.
Wheeler argues that municipal networks drive innovation and infrastructure investment, forcing private providers to improve their services.
Why Municipal Broadband Matters
Chattanooga’s success demonstrates the potential:
- Offers speeds 10-100 times faster than national averages
- Maintains competitive pricing with major providers like AT&T and Comcast
- Funded through creative financing (\(220M in bonds + \)111.5M federal stimulus)
Industry Pushback and Political Resistance
Telecom giants are fighting back:
- Heavy lobbying against municipal broadband expansion
- The National Conference of State Legislatures (NCSL) opposes FCC intervention
- NCSL board includes telecom executives and state legislators
The Road Ahead
Key considerations in the debate:
- Infrastructure Costs: Building fiber networks requires significant investment (Chattanooga spent $330M)
- Consumer Benefits: Municipal networks often provide better service at comparable prices
- Political Dynamics: Conflict between federal support and state-level restrictions
As the FCC weighs these petitions, the outcome could reshape America’s broadband landscape, potentially creating more competition and better services for consumers nationwide.
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