Rural communities and small cities
took a blow to their prospects for municipally provided broadband internet service on August 10th when the U.S. Sixth Circuit Court of Appeals in Cincinnati ruled
against the Federal Communications Commission’s 2015 order to preempt state laws in North Carolina and Tennessee. Wilson, North Carolina, and Chattanooga, Tennessee, had petitioned the FCC to allow them to build municipal broadband networks and the FCC had acted under a provision of the 1996 Telecommunications Act directing it to remove barriers to broadband investment and competition. The Sixth Circuit Court ruled the FCC did not have the power to supersede state law.
have laws hampering the ability of local governments to provide broadband service, with the corporate-funded American Legislative Exchange Council (ALEC) offering sample legislation
to more states. As Michael Copps, a former FCC commissioner and now an advisor to Common Cause, put it “Let’s be clear: industry-backed state laws to block municipal broadband only exist because pliant legislators are listening to their Big Cable and Big Telecom paymasters.”
The FCC defines broadband as an upload speed of at least three megabits per second and a download speed of no less than 25 megabits per second, and maintains a map displaying the different types of service available around the country. Even in larger cities where broadband is more commonly available, however, consumers have few choices of internet service provider because for all practical purposes carriers such as Comcast operate as regional monopolies.
The possibility of building municipal broadband networks has been an option in areas of low population density where private internet service providers often display little interest in building out their network for what they see as small return on their investment. People in poorly served areas sometimes turn to satellite service, though it has drawbacks in the form of high latency speeds and throttling of service for users who have reached certain data caps. In the same areas, wireless service can be spotty, with generally low data caps at high cost.
It appears the debate
over net neutrality and whether to treat broadband service as a utility may revive, and it will be up to Congress to either strengthen the FCC’s regulatory powers over the states and the industry or to enact legislation defining internet service providers as common carriers, something companies like AT&T and Verizon
fought tooth and nail against during the last round of discussions in 2014.