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Speak Out
Should states place limits on local Internet access networks?
If you live in a city or suburb, chances are you have a fast Internet connection – probably from a company like Time Warner or Comcast.
If you live in a more sparsely populated rural area, these companies might not be able to reach your region with their high-speed connections or decided it wasn’t worthwhile to invest in high-speed infrastructure for these areas. You might have to get your Internet from their lower-speed services. Or maybe they don’t offer service in your area at all.
The federal government is trying to fix this by pushing for expanded broadband Internet service across the country. In the 2009 economic stimulus bill, $7.2 billion was set aside to help Internet coverage grow. Some small towns are taking advantage of this by investing in creating their own Internet services – ensuring fast connections in areas where the big companies underserve residents or don’t serve them at all.
But some states are pushing back.
Last month, the North Carolina House of Representatives passed the Level Playing Field / Local Government Competition bill. If it passes the Senate and is signed into law by Gov. Beverly Perdue, the bill would make local Internet companies run by public money subject to the same regulations as private national corporations. It has received the backing of those corporations. A similar bill is being considered in South Carolina.
What is this public / private difference? Think about it like a utility. These small towns that felt left behind in the digital era want to treat the Internet the same as any other public service – like phone service, or electricity or gas or water. But companies like Time Warner argue that since local governments don’t have to pay the same taxes as the corporations, they have an unfair advantage. The companies also say that profits from local energy or gas services can be shifted to a local Internet service, allowing it to offer service at a lower price.
A statement from Time Warner said: “The bill is intended to create a level playing field so if local governments want to provide commercial retail services in direct competition with private business, they can't use their considerable advantages unfairly.”
But those on the municipal side see this as the cable companies’ attempts to smother their competition at the local level.
“It is a monopolistic bill from the word go,” said Rep. Bill Faison (D., Caswell) in an interview with WRAL TV. "We still have people who are largely underserved throughout many areas in our state."
They counter that it is unfair to make a small town pay taxes at the same level as a national corporation – and that imposing that requirement would pretty much keep any local public Internet network from getting off the ground. The town of Morresville passed a resolution urging the House and Senate not to pass the bill, which, it says, “greatly hinder[s] local governments from providing needed communications services, including public safety networks, and especially advanced high-speed broadband services, in unserved and underserved areas.”
What do you think?
Should states place limits on cities’ creating local Internet access services? Are companies like Time Warner and Comcast correct that cities have an unfair advantage if they go into the Internet business? What do you think is the upside to treating the Internet as a utility, like gas or electric? What are the downsides? Join the discussion!
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