Cities side with FCC against state regulators in federal court

4 May 2015 by Steve Blum
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The battle lines are forming over the Federal Communications Commission’s decision to tell states that they can’t particularly restrict municipal broadband systems. They could ban them altogether, but once allowed, the FCC says that munis can’t be required to play by significantly different rules than private Internet service providers.

The State of Tennessee was the first to file an appeal, in the federal appellate court in Cincinnati, aka the Sixth Circuit. No one else filed elsewhere, and in fact the other primary party in the matter, the State of North Carolina, still seems to be weighing its options.… More

Tacoma gets a competing offer for its muni broadband system

3 May 2015 by Steve Blum
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Another company has joined the bidding to take over the City of Tacoma’s ageing cable TV and broadband system, aka Click. Rainier Connect, a local cable, telephone and broadband company, says it’ll more or less match the terms offered by Wave Broadband and add a sweetener for Tacoma Public Schools.

Tacoma’s muni system is losing $9 million a year, according to recent reports and will also need extensive upgrade work. Wave stepped in with a proposal to pay the city $2 million a year for 40 or more years, and also invest an additional $1.5 million annually in plant upgrades.… More

Tacoma considers a private bailout plan for muni broadband system

20 April 2015 by Steve Blum
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Local choice is not a free ride.

The City of Tacoma might back out of the cable TV and broadband business, and lease its municipal cable system to a private operator for 40 years (h/t to the Baller-Herbst list for the pointer).

The muni system – branded Click – was built on the back of a fiber optic network originally installed to support the city-owned electric utility. It competes against Comcast and CenturyLink, which is a benefit to local residents in the sense that they have a third option and a source of pressure on what would otherwise be cable and telephone monopolies.… More

Net neutrality clock starts counting down

14 April 2015 by Steve Blum
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Three, two ,one.

The twelfth of June is the day that new net neutrality rules will become effective. Those rules were approved by the Federal Communications Commission in February and released in March, and were officially published in the Federal Register yesterday, with the 12 June 2015 date specified.

There’s a big if involved, though. That’s only if a federal court doesn’t put everything on hold while considering the legal challenges that have already been filed and those that are expected to come.… More

Muni broadband preemption lands in federal court

31 March 2015 by Steve Blum
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Don’t be abusing your discretion in Tennessee.

Tennessee is taking the FCC to court over its ruling that preempted state-imposed restrictions on municipal broadband systems. It filed a petition asking the federal sixth circuit court of appeals to “hold unlawful, vacate, enjoin, and set aside the Order, and provide such additional relief as may be appropriate” because…

In the Order, the FCC preempts Tennessee law pertaining to the operation of municipal electric plants, including the Electric Power Board of Chattanooga, an instrumentality of the City of Chattanooga, created and controlled by the State of Tennessee.

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Legal challenges to FCC decisions coming soon

22 March 2015 by Steve Blum
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Washington-based lobbying groups are making the first rumblings of legal challenges to the FCC’s decision to bring common carrier regulation to Internet service and infrastructure. Reuters is reporting that telecoms companies plan to let their trade associations take the lead on legal challenges.

We might see the first filings this week. The first step is for the FCC to publish the text of the ruling in the Federal Register, which might happen in the next few days.… More

FCC decision says state laws must treat muni and private ISPs the same

15 March 2015 by Steve Blum
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Only Washington can level the playing field.

Municipal broadband initiatives either have to be banned altogether by state law or allowed the same latitude to conduct business that the FCC gives private Internet service providers. That’s the core of the FCC’s decision, released last Thursday, to preempt state-imposed restrictions on publicly-owned broadband systems in Tennessee and North Carolina…

A different question would be presented if we were asked to preempt…a law that goes to a state’s power to withhold altogether the authority to provide broadband.

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FCC muni broadband decision relies on a wobbly position

13 March 2015 by Steve Blum
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This isn’t the first time the feds have fought in Chattanooga.

There was no doubt that the FCC would vote two weeks ago to pre-empt state laws in Tennessee and North Carolina that restrict the ability of local governments – the cities of Chattanooga and Wilson respectively – to get into the broadband business. Both U.S. president Barack Obama and FCC chairman Tom Wheeler promised it was coming. And there’s no shortage of reasons to do it (or not).… More

Muni broadband ruling posted by FCC

12 March 2015 by Steve Blum
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Today is the day. The FCC just followed up its release of new common carrier rules for the Internet with the text of its decision to preempt state restrictions on municipal broadband projects in Tennessee and North Carolina…

Click here to download the muni broadband decision…

The statements issued by the five commissioners can downloaded here.

It’s 116 pages long. Added to the 400 pages of new common carrier rules all the associated commissioner statements, objections and press releases, that makes for a serious reading assignment today.… More

UTOPIA tests everyone pays, everyone gets muni broadband model

9 March 2015 by Steve Blum
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At a crossroads.

The latest report issued by Macquarie Capital as it pushes ahead with an effort to bail out the sinking multi-city UTOPIA municipal fiber-to-the-home project in Utah confronts an inevitable collision between public policy and profitability.

Good public policy requires muni FTTH service to be available to all, whether or not they want it now, or whether their neighbors want it. It’s a defining characteristic of any government-provided service. On the other hand, good business practice – indeed, the defining feature of capitalism – calls for money to be spent where the return on investment will be the highest.… More