Tuesday, December 8, 2015

Imagine

Imagine you had one more choice for your internet service.  Imagine it was a higher quality/speed service than you currently had.  Imagine there was a municipal broadband provider who was providing such a service in the neighboring community and wanted to expand its coverage into your local area.  Wouldn’t you consider this to be welfare-improving?  If yes, then, why are your elected state representatives (NC and TN) protecting private broadband firms from this government competition?  GOOD QUESTION.


The FCC wants this for you.  In February, it preempted the state laws that prevented muni broadband build-outs.  That decision is currently being challenged in court.


Note: Section 706 of Telecom Act of 1996 allows the FCC to use "measures that promote competition in the local telecommunications market, or other regulating methods that remove barriers to infrastructure investment."  The question is whether the FCC has the authority to preempt state laws if it is deemed a “barrier”.  

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