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Lawmakers approve new rules for municipal broadband
Friday, 06 May 2011 08:47

(RALEIGH) -- A bill that would create new rules for local governments looking to offer internet, television and telephone service is headed to Gov. Bev Perdue.  House lawmakers voted 84-32 in favor of changes adopted by the Senate earlier this week.

The measure easily cleared both chambers with enough support to override a potential veto, although Perdue hasn’t publicly taken a stance on the proposal. Perdue spokeswoman Chris Mackey said the governor will review it once it comes to her desk. 
 
Private providers said cities currently have a competitive advantage because they can offset costs through other government-run services. Supporters also argued that local governments should be required to get voter approval before borrowing money for building broadband projects. The five North Carolina cities now offering high-speed internet have amassed nearly $150 million in debt.
 
“What we’re trying to do with this bill is keep the citizens of the rest of the cities around North Carolina from facing what the citizens of Wilson now face, said Rep. Jeff Collins, R-Nash. “They were put on the hook for millions of dollars of debt that they didn’t have a chance to vote on.”

Critics warned the bill would stifle the expansion of high-quality internet service – especially in rural and less-populated areas of the state. Municipal leaders also said building government-owned networks were a last resort after private companies turned down requests to provide faster broadband service.
 
“The bill should be re-titled, ‘The Time Warner Cable Anti-Competitive Bill’,” said Rep. Bill Faison, D-Orange. “It’s a Time-Warner bill. It’s a New York company bill. It’s not even folks from around here’s bill to keep our municipalities from providing services to their citizens.”
 
The legislation does include some exceptions for existing cities offering service as well as municipalities where less than half of households have access to high-speed internet.

 
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