United States:
New York Times Reports On North Carolina Laws And Broadband Systems
11 November 2014
Womble Bond Dickinson
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The New York Times reported this weekend about the efforts to
bring high-speed internet to communities, the state and local laws
that govern or attempt to govern those efforts, and the practical
outcome of the combination of those laws and efforts.
In North Carolina, as
in 18 other states, state laws limit municipalities from building
or expanding high-speed Internet service networks. The reason
behind those laws, supporters say, is to limit taxpayer exposure to
projects that at times fail and for which there may be little
demand. But Tom Wheeler, the Federal Communications chairman,
says providing access to broadband Internet is in the public
interest, And for that reason, he says, the commission can
override those state laws -- setting off a heated debate about the
federal commission's authority over states and about whether
local governments or private companies should provide the
service.
Supporters of the North
Carolina law say it promotes broadband expansion, as long as
private companies are put on a level playing field with public
entities -- being allowed the same access to telephone poles, for
example. The law is also intended to keep taxpayers from
being stuck with a bill for a failing network. In North
Carolina, as in many other states, the law says a broadband system
cannot be subsidized with revenue from other utilities. North
Carolina also requires municipalities to hold a special election to
approve such projects. Wilson[, North Carolina's] system,
which was built before the law, was simply approved by its City
Council.
The report is interesting for as much it says about a kind of
home rule ("The federal government should stay away from state
laws and issues of local concern; it cannot preempt everything.
Also, State laws should stay away from local issues.")
to as much as it says about fiscal views ("Tax dollars for
espn.com? That's crazy.") to as much as it says
about whether the internet is a service like fast food or a hotel,
a public utility (as believed by the
President) like electricity or gas, or a government service
like roads and schools.
The article can be accessed here.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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