FCC Does the Right Thing, Part Two

In yet another 3-2 party line vote, the FCC has voted to preempt state laws that prohibit or restrict the deployment of municipal broadband:

The Federal Communications Commission today voted to preempt state laws in North Carolina and Tennessee that prevent municipal broadband providers from expanding outside their territories.

The action is a year in the making. FCC Chairman Tom Wheeler announced in February 2014 his intention to override state laws designed to protect private cable companies and telcos from public sector competition. Wheeler took his cue from the federal appeals court ruling that overturned net neutrality rules; tucked away in that decision was one judge's opinion that the FCC has the authority to preempt "state laws that prohibit municipalities from creating their own broadband infrastructure to compete against private companies."

Nineteen states have such laws, often passed at the behest of private Internet service providers that didn't want to face competition. Communities in two of the states asked the FCC to take action. The City of Wilson, North Carolina and the Electric Power Board (EPB) of Chattanooga, Tennessee filed the petitions that led to today's FCC action. Each offers broadband service to residents and received requests for service from people in nearby towns, but they alleged that state laws made it difficult or impossible for them to expand.

“You can’t say you’re for broadband and then turn around and endorse limits on who can offer it,” Wheeler said today. “You can’t say, ‘I want to follow the explicit instructions of Congress to remove barriers to infrastructure investment,' but endorse barriers on infrastructure investment. You can’t say you’re for competition but deny local elected officials the right to offer competitive choices."

States have given municipalities the authority to offer broadband but made it difficult with tons of bureaucratic requirements, he said. "The bottom line is some states have created thickets of red tape designed to limit competition," he said. Local residents and businesses are the ones suffering the consequences, he argued, pointing to members of the two communities in the audience.

For most internet users, this may have a more noticeable impact than the FCC's net neutrality (Title II) decision, because in most of the United States, there is no meaningful competition, and so consumers are ripped off and abused by the telcos and the cable companies.

Their local monopoly status is why the big cable companies are free to behave in a manner that has made them the most widely loathed companies in America.

To rephrase Lily Tomlin, "So, the next time you complain about your cable service, why don't you try using two Dixie cups with a string? We don't care. We don't have to. We're the cable Company."