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FCC Warned Not To Take Actions a Republican-Led FCC Would Dislike
tlhIngan writes Municipal broadband is in the news again — this time Chief of Staff Matthew Berry, speaking at the National Conference of State Legislatures, has endorsed states' right to ban municipal broadband networks and warned the (Democrat-led) FCC to not do anything that a future Republican led FCC would dislike. The argument is that municipal broadband discourages private investment in broadband communications, that taxpayer-funded projects are barriers to future infrastructure investment.
What? No they aren't. This isn't telephone service—it's internet service. There are no regulations requiring them to provide service out in the boondocks. Indeed, Verizon and AT&T received massive government subsidies to expand broadband service to rural customers, and then just decided not to do it and kept the money.
When I lived in rural southeastern Arizona, I got my DSL service from Valley Telecom, a local customer-owned cooperative that provides internet service, telephone and cellular to the poorly served areas of that rather sparsely populated corner of the state. I had 1.5mbps DSL in 2006 10 miles up a dirt road outside of Bowie, Arizona, pop. 300, for a very reasonable price, and VTC was doing just fine financially. It was a bit cheaper than my current service from Comcast, but that's precisely because Comcast only serves the areas where it can make a profit.
Meanwhile, back in Verizon territory, my mom, who is on the selectboard of her town (pop. 1200, small but much more dense than Bowie) could not get any kind of broadband in 2006, and the town wound up having to set up their own municipal broadband wireless service using Motorola Canopy radios and a microwave link to Mt. Tom because that's the only way they could avoid a massive drop in property values due to the lack of this essential service in the town, despite the fact that Verizon had been receiving money to pay for installing broadband to towns just like hers for the previous decade.
So maybe some shill from a cable company told you all about how supporting rural customers is why their service is so expensive, but that's a complete load of bullshit. Local and state governments don't currently have authority to impose regulations of this type on ISPs.
This has nothing to do with "banning municipal broadband" today, and everything to do with not granting a power at the Fed level that would let a future FCC in 1-2 election cycles do exactly that.
FTFA:
"If the history of American politics teaches us anything, it is that one political party will not remain in power for perpetuity. At some point, to quote Sam Cooke, 'a change is gonna come,'" Berry said. "And that change could come a little more than two years from now. So those who are potential supporters of the current FCC interpreting Section 706 [of the Telecommunications Act] to give the Commission the authority to preempt state laws about municipal broadband should think long and hard about what a future FCC might do with that power."
Arguing that municipal broadband networks could discourage investment by private companies, Berry said, "Itâ(TM)s not hard, then, to imagine a future FCC concluding that taxpayer-funded, municipal broadband projects themselves are barriers to infrastructure investment. So if the current FCC were successful in preempting state and local laws under Section 706, what would stop a future FCC from using Section 706 to forbid states and localities from constructing any future broadband projects? Nothing that I can see."
Caveat Emptor is not a business model.
I suspect that he's referring to the idea that a lot of people can't shake that stockhoder voting correlates to the voting booth. In fact, corporations tend to be structured so that one person, or a few "like-minded" people maintain sufficient power that no number of new voters will change the direction of the company, since no newly issued stock goes out without existing shareholders having the ability to buy sufficient shares to maintain their majority status. Companies only change when there are tender offers and the majority shares change hand, being purchased by a new, small cadre of like-minded people. Not because a lot of small shareholders ban together to vote a different way. Individual votes are less meaningful than in a general election.