Bill would limit North Carolina cities starting broadband
North Carolina's Senate Finance Committee on Wednesday postponed considering legislation that would force municipalities to get voter approval before borrowing money to build a competing broadband network.
The bill is the latest in a series of efforts by telecom corporations to keep local governments out of the broadband business. "This is another iteration of the previous ones we have seen over the last three years that are designed to contain and cripple existing systems, and set the bar so high for new systems that it would be difficult for communities to move forward," said Doug Paris, an assistant to Salisbury's city manager. Salisbury has borrowed $30 million to build a fiber-optic network. It will begin testing the system in a few months. The telecom companies are opposed by the politically influential North Carolina League of Municipalities and corporate giants Google and Intel. They argue that crimping municipal broadband could stifle economic growth in a wired age. Cable and phone companies have been urging the General Assembly to restrict municipal broadband services since a 2005 state appeals court ruling upheld the right of towns and cities to offer their residents broadband. Companies argue that local governments have an unfair advantage because they don't have to pay taxes and can subsidize their rates, undercutting the corporate competitors.