Wednesday, June 2, 2010
Anti-municipal broadband bill passes Senate Finance
The bill's title—“No Nonvoted Local Debt For Competing System"—hides the measure's true intent: to kill cities' and towns' authority to build high-speed Internet systems that could compete with the telecommunications companies. It sponsored by Sens. David Hoyle, Dan Blue (a Wake County Democrat), Peter Brunstetter, Fletcher Hartsell, Clark Jenkins, and Jerry Tillman.
The bill's language was revised this past week to include a moratorium. If the bill becomes law, the moratorium would extend through August 2011 when the legislature's long session ends, thus buying the telecommunications companies time to flex their political muscle.
The moratorium carefully exempts current broadband systems like those built in Wilson and Salisbury, but affects cities that did not launch their own broadband feasibility study, before yesterday, June 1. Provisions of the revised bill include informing the industry (i.e., AT&T, Embarq, Time Warner Cable, etc.) when a city or town is considering creating its own system.
Hoyle introduced the “anti” municipality broadband bill nearly a month ago at the Revenue Laws Study Committee. He called the bill a "good one since neither side likes it" and admitted he wasn't all that fond of it himself.
While Hoyle calls North Carolina a state known internationally a business friendly, he overlooked the necessity of successful businesses having high-speed connectivity.
Today, commenting on his bill, Hoyle focused on his "philosophical" ideals: that government should not compete with private enterprise. He said allowing municipal broadband systems creates, “uncontrolled competition on an un-level playing field."
Municipal cable and broadband consultant Catharine Rice of Action Audits said it's important to remember Time Warner Cable is a multi-million dollar business, adding that Sen. Hoyle's "fairness" argument is misguided.
"This is a sad day for our state," said Rice. "Especially, when we saw yesterday that China plans to bring fiber to the homes of its citizens by the end of the year—that's 18 million homes—yet in North Carolina we just had legislation passed that stops cities that want to bring fiber to their citizens homes."
Sen. Joe Sam Queen, a Democrat representing Avery, Haywood, Madison, McDowell, Mitchell, and Yancey counties, spoke out against the bill. "The private sector is not getting it done fast enough for my taste," he said citing the educational opportunities children in rural areas he represents need internet connectivity—connectivity the telecommunications companies are slow to provide.
Sen. William Purcell, a Democrat representing Anson, Richmond, Scotland, and Stanly counties had one question Sen. Hoyle: "What insurance do we have that the big companies supplying cable won't overlook the small less profitable markets and cities in N.C.?"
Hoyle casually replied: "The same reason small cities shouldn't get into the broadband business to begin with."
Purcell ended his comments by saying, "I hope that in the end we do keep small rural communities in mind. They need it [broadband] just as much as the cities do."
Comments (4)
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Hoyle mentioned that North Carolina was known internationally as "business friendly." That's true. North Carolina used to be known as the one of the states business could flee to from the North so they could underpay workers and bust unions. That is until businesses realized they could do it cheaper still overseas. The flip side is that its worker unfriendly with some of the worst legislation and and anemic protection for workers of any state in the union. The labor commission is a joke when it comes to protecting workers. Hoyle's move here only serves to guarantee that communities that don't have access to broadband service to improve their attractiveness to companies and provide access to students and others to broadband internet still won't get it.
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One interesting point made possible by bush and company, the big Corp telecoms don't want municipal control because then the next bush would not be able to spy on US companies and citizens as easily. There is the loss of control factor behind this politicians actions as well as the others mentioned.
I have been waiting for 14 years to obtain anything better than dial up internet service. Satalite service is too expensive for our small business and the slow dial up service is keeping us from being competitive. Senator Joe Sam Queen is so right, the private sector is not getting it done fast enough for my taste either. Thank goodness we have Sen. Queen to speak up for those of us who live in the rural mountains and that have seemingly been forgotten by other legislators.
This bill strikes me as protecting the private sector, but the reason Wilson and Salisbury created their networks was because the private sector wasn't moving fast enough or charged too much.
I for one would welcome more competition as I feel this industry has very little of it. Why would the legislature create a bill prohibiting competition by government entities?
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