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Appeals Court Decision Kills North Carolina Town's Gigabit Internet (hothardware.com)

MojoKid writes: In early August, the 6th Circuit U.S. Court of Appeals ruled the FCC had no authority to prevent states from imposing restrictions on municipal internet. This was a result of the FCC stepping in last year in an effort to "remove barriers to broadband investment and competition." However, the courts sided with the states, which said that the FCC's order impeded on state rights. In the end, this ruling clearly favored firmly entrenched big brand operators like Time Warner Cable, Comcast, and ATT, which lobbied hard to keep competition at bay. The federal ruling specifically barred municipal internet providers from offering service outside of their city limits, denying them from providing service to under-served communities. The fallout from the federal court's rejection of the FCC order to extend a lifeline to municipal internet providers has claimed another victim. The small community of Pinetops, North Carolina -- population 1,300 -- will soon have its gigabit internet connection shut off. Pinetops has been the recipient of Greenlight internet service, which is provided by the neighboring town of Wilson. The town of Wilson has been providing electric power to Pinetops for the past 40 years, and had already deployed fiber through the town in order to bolster its smart grid initiative. What's infuriating to the Wilson City Council and to the Pinetop residents that will lose their high-speed service is that the connections are already in place. There's no logical reason why they should be cut off, but state laws and the lobbyists supporting those laws have deemed what Greenlight is doing illegal. Provide power to a neighboring town -- sure that's OK. Provide better internet to a neighboring town -- lawsuit

49 of 222 comments (clear)

  1. Right. by EzInKy · · Score: 2

    Just like States can impose restrictions on where you pee.

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    1. Re:Right. by philip456 · · Score: 4, Insightful

      Don't blame the states, blame the big corporations and blame us for looking the other way while we got to the situation, where $2.6 billion of reported lobbying (bribery) donations are given to the House and Senate every year.

    2. Re:Right. by ravenshrike · · Score: 2

      Ironically, given the nature of the business of the corporations in question and the internet in particular, this is actually a situation where an originalist reading of the commerce clause would give the feds carte blanche. The one time the courts fucking should apply it, they don't.

    3. Re:Right. by currently_awake · · Score: 4, Insightful

      Blame the politicians for taking bribes, or being influenced by deep pocket corporations. People can demand these monopoly laws be removed, the voting record of the state politicians is a matter of public record so you know who to blame. Politicians only get away with this corruption because the voters don't care. Also spin off the municipal broadband as a private corporation and they can keep it running.

    4. Re:Right. by dkone · · Score: 2, Insightful

      How in the fcuk did this comment get modded as insightful? Out of the three you got 1 right.

      Don't blame the States - Wrong, blame the States, it is the States (as through it's elected officials) that is taking the bribes (meaning the 'legal' lobbying).
      Blame the big corporation - Correct.
      Blame us- Wrong. The corruption of politics is so complete that if you believe your vote counts for anything then you are delusional.

    5. Re:Right. by Applehu+Akbar · · Score: 4, Informative

      Blame "us" why? You say to blame "us" like we could do something about it. What would you have "us" do other than read news articles and say how bad it is? There is literally nothing "the People" can do about this kind of injustice. American democracy is a sick joke.

      Precisely why the overwhelming public perception right now is that the only fix to vote for an outsider candidate and blow it the hell up.

    6. Re:Right. by Applehu+Akbar · · Score: 4, Funny

      Yeah let's turn this into an LGBT issue, that'll make things more progressive.

      You may actually be onto something here. If we can somehow define municipal broadband as an LGBT right, no court can stop it.

    7. Re:Right. by RatPh!nk · · Score: 5, Interesting

      I'm a doctor - MD type. I can't take a pen or a lunch without being accused of having a terrible bias and being "on the take" with "big Pharma" but politicians can literally take tens or even hundreds of thousands actual US dollars (maybe millions) then write (or have written for them) clearly bribed legislation and this is normal. Hmmmm.....

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    8. Re:Right. by Anonymous Coward · · Score: 2, Informative

      Blame us- Wrong. The corruption of politics is so complete that if you believe your vote counts for anything then you are delusional.

      Your influence in government is increased the more local that government is. Your vote may not count much (if at all) at a federal level, but it does at the state level.

    9. Re:Right. by dingleberrie · · Score: 5, Insightful

      I think it's because doctors don't approve laws for doctors, but politicians approve laws for politicians.

  2. Just keep it running. by Z80a · · Score: 3, Insightful

    Arrest anyone that tries to shut it off.

    1. Re:Just keep it running. by Z80a · · Score: 2

      Well, it's not about losing a fiber internet connection, it's about letting companies buy the death of the competition.
      A future where you're forbidden to compete on anything is basically something like communism but even worse, as they don't even need to pretend that they care about you.

  3. Bribery wins again by Dog-Cow · · Score: 4, Interesting

    At the very least, service should keep running until someone else provides service. It's not as if Comcast is going to provide service within anyone's lifetime just because Greenlight stops.

  4. Work around? by flex941 · · Score: 5, Insightful

    An European here cannot comprehend what's preventing creating a Pinetop Municipal Broadband Company which will provide the connection to locals and contractually buying bandwidth/network and other related services from the Wilson guys?

    1. Re:Work around? by Anonymous Coward · · Score: 4, Interesting

      Yeah, sell the fiber network to Pinetops for $1 and then they can hire Wilson to run the net.

    2. Re:Work around? by Anonymous Coward · · Score: 3, Interesting

      What I as a European don't understand is how it can be that the state can enforce an ISP monopoly. In the United States of Frothing Freemarketia no less.

    3. Re:Work around? by Darinbob · · Score: 4, Informative

      Because that too would be disallowed under state law. The locals have no political power. None of this has anything to do with any legal theory or ideal regarding state's rights, it's all about campaign donations. Oh sure, there's some frantic handwaving about how all government is evil and so a municipal government can't tax citizens to provide basic services, even if the citizens voted for it, so therefore there must be an even bigger government to stop that with an iron fist. But no one seriously believes that without being a wearer of tin foil hats. Pure and simple it's all about getting re-elected, which means getting big companies to give you money, and only picking on people that the average voter won't know or care about.

    4. Re:Work around? by houghi · · Score: 2

      Capitalism trumps Free Market.

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    5. Re:Work around? by tburkhol · · Score: 2

      Incorporation is just a legal framework for people to work together. It doesn't force that organization to have a business plan, to be for-profit, or to seek venture captial and a path to IPO.

    6. Re:Work around? by dwillden · · Score: 2

      Not corporations in the sense that we think of most large businesses with shares and stockholders, but incorporated entities established under the laws of the state to provide for authority to levy taxes and provide services. An unicorporated community has no ability to levy taxes or provide services because it's just a grouping of houses that someone has applied a name to, it has less legal authority than a HOA does.

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    7. Re:Work around? by WolphFang · · Score: 2

      We don't have capatilism here, we have a Mercantilistic flavour of Corportism. Followers of true capatilism with open competition need not apply.

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    8. Re:Work around? by Fjandr · · Score: 4, Insightful

      What the US has is crony capitalism. All of the drawbacks of socialism with none of the benefits. It doesn't help that people use terms interchangeably that mean vastly different things. There is a revolving door between big business and the government, so risks are nationalized while the rewards are pocketed. The entire system is fundamentally at odds with laissez faire capitalism, so when people yell that this is what happens in a free market those who actually care what words mean discount them as the ignorant buffoons they are.

  5. Call a spade a spade by Anonymous Coward · · Score: 5, Insightful

    In the end, this ruling clearly favored firmly entrenched big brand operators like Time Warner Cable, Comcast, and ATT, which lobbied hard to keep competition at bay.

    Can we just call a spade a spade, and treat "lobbying" as a bribe? I'm getting sick of seeing this blatant corruption.

    1. Re:Call a spade a spade by TimSSG · · Score: 2
      Depending on what you mean by "lobbying" it is NOT always a bribe; it many cases it is instead protection money.
      Tim S.

      In the end, this ruling clearly favored firmly entrenched big brand operators like Time Warner Cable, Comcast, and ATT, which lobbied hard to keep competition at bay.

      Can we just call a spade a spade, and treat "lobbying" as a bribe? I'm getting sick of seeing this blatant corruption.

  6. Don't blame the courts. by Spazmania · · Score: 5, Interesting

    Blame North Carolina for passing a bad law. The courts did no more than affirm the states' right to regulate their municipalities.

    While you're at it, blame Wilson for overreaching. They could have made a case for installing basic infrastructure (fiber optic cable, no different than roads) and then leasing it by the strand to individuals and businesses to connect to the Internet provider of their choice. And invited providers to enter the market and compete, now with the ease-of-entry facilitated by last-mile infrastructure. Instead they made the same bad decision most municipalities make: run a municipal Internet service with no direct access to the cable for other purposes.

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    1. Re:Don't blame the courts. by Darinbob · · Score: 4, Interesting

      Good news it can now go to the supreme court. Then let's see if they find that "state's rights" trump the rights of local municipalities or not. State's rights is pure hypocrisy, whining that the feds have too much power while turning around and exerting undue power over it's own citizens, all for no rational legal purpose than to get campaign funds from donors, while the rights of the people are ignored. Libertarians are probably in a tizzy over this; support small government, or support their traditional allies the big corporations.

    2. Re: Don't blame the courts. by johnsmithperson123 · · Score: 4, Interesting

      Basic fibre internet is the rural electrification of the 21st century.

    3. Re: Don't blame the courts. by Anonymous Coward · · Score: 4, Insightful

      So you thini there's somehow a natural right for some private entity to be given access to infrastructure they did not build so they can make a profit because...I can't even make up a because here.

      There is no right of privitization. Despite what conservatives think, capitalism is not enshrined in our Constitution and if we the people decide we want to provide something absent some fatcats making money off of it then that is our right.

      I'll grant that shouldn't be done in haste, but no justification is needed. In this case there's plenty of justification. Cable and telecomm companies these days do nothing but engage in rent seeking behavior and holding back progress.

      North Carolina is wrong and the court is wrong. In all the furor over states' rights everyone is forgetting peoples' rights.

      Now, in a large screw you gesture to the vastly corrupt and totally owned by corporate interests North Carolina state government, what ought to happen here is that the people in these towns should form a non profit company in which they all own equal shares. They can elect a board to run it, get tax rebates and gifts from their governments for startup money just like billionaire sports team owners get who don't want to pay their own business expenses, and run the thing the way it's being run right now. Of course the company would have in its charter a prohibition on ever being sold to a for profit entity.

    4. Re:Don't blame the courts. by dwillden · · Score: 2

      You don't understand what you are ranting about. When the Constitution was established the government was seen as two key entities, the States which are under local control and the Federal Government. Municipalities are entities of the state and are subordinate to it. States rights are a legitimate check on Federal power. The States are supposed to have greater power to influence events and actions entirely internal to the state.

      I don't agree with this ruling as broadband should be treated as a utility allowing local governments to aid the implementation of it as they have with rural electrification and telephone services before MA Bell took over everything.

      I think overall this ruling is wrong in how it looks at internet service. If treated as a utility then the FCC should have say. Particularly if the was no effort by any broadband provider to push fiber into that town. On the states rights issue, NC does have some validity but in this case it is being used to maintain a bad law that only hurts the citizens of the state to the benefit of corporations.

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    5. Re:Don't blame the courts. by Anonymous Coward · · Score: 2, Insightful

      ... leasing it by the strand to individuals and businesses ...

      Councils don't build roads and then lease them to toll operators; they don't install mains water pipes and lease them to a 'water operator': Operating the whole service is the point of council: There are 2 exceptions for civil infrastructure; electricity and communications. Electricity isn't so bad since it is tightly regulated once it leaves the provider's sub-station. In hindsight, it was wrong of councils to outsource communication infrastructure, which has created the very mess councils are now mired in. Modern communications is a shit-can where the provider can install, or not, what they want, charge what they like, then pay protection money to state politicians for reduced competition.

      ... impeded on state rights ...

      Meaning the states can forbid councils from building roads or installing mains water services. Either companies sue for privatization of these services, or councils sue for giving communication providers preferential treatment.

    6. Re: Don't blame the courts. by Bert64 · · Score: 3, Interesting

      The entity that installed the infrastructure in the UK was the government, who then sold off the infrastructure to a private company.
      This private company has only upgraded the infrastructure in areas that would be profitable, or when the government has further subsidised the upgrades.
      Commercial entities have installed their own infrastructure too, but only in certain profitable areas, other areas are left in the dark.

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    7. Re:Don't blame the courts. by Fjandr · · Score: 2

      This is long-settled law. The Constitution of a State always trumps municipal powers, because all municipal powers ultimately depend on devolution from the State Constitution.

    8. Re:Don't blame the courts. by currently_awake · · Score: 3, Insightful

      Municipal broadband affects the inter-state commerce of internet service, it changes the price in the national market. This means the federal government can use the inter-state commerce law to regulate it (this is the same reasoning they used to regulate people growing marijuana for personal use)..

    9. Re: Don't blame the courts. by Spazmania · · Score: 2

      Municipal governments don't have rights, they have responsibilities and areas of authority as assigned by the state governments. To misunderstand that is to grossly misunderstand basic civics in the United States.

      You also misunderstood what I wrote if you think I made any sort of claim that there's "right for some private entity to be given access to infrastructure they did not build."

      I spoke to the smart plan, not any kind of rightful one. The smart plan is to build roads and let private enterprise build cars. The smart plan is to build last-mile fiber and let private enterprise build services like Internet access.

      I would support laws against municipalities building cars were any hair-brained enough to try.

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    10. Re: Don't blame the courts. by Cajun+Hell · · Score: 2

      There is no right of privitization. Despite what conservatives think, capitalism is not enshrined in our Constitution and if we the people decide we want to provide something absent some fatcats making money off of it then that is our right.
      ..
      In all the furor over states' rights everyone is forgetting peoples' rights.

      If I were a federal judge, I would that we the people decided to not provide the something. This has nothing to do with conservatism or capitalism. It's a result of a state law, passed ostensibly by the will of the people. Upholding states rights which conflict with unelected federal regulator is seen as respecting peoples' rights.

      Yes, duh, I get it: everyone knows that it's not really true. The state's legislators and governor (unless he vetod and was overridden) were actually trying to work against the will of the people. But a judge will never say that. Democracy is always presumed to exist. (And that's actually the best presumption; I would never want to change that.)

      Repeal the ridiculous law, and you solve the problem. Vote out the people who got caught enacting that law.

      Yes, it's easier said than done. But if you can't do it, then you have no reason to expect courts and judges to uphold the will of the people either.

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    11. Re: Don't blame the courts. by jittles · · Score: 4, Funny

      Basic fibre internet is the rural electrification of the 21st century.

      Yes but someone told the NC State Legislature that this municipality was going to allow transgendered people onto the exact same internet as everyone else and they freaked out.

  7. Confused by stealth_finger · · Score: 5, Insightful

    Is this basically the state saying to its people "fuck you, you can't have good internet because it's not sold by our buddies who would rip you off if they could be bothered, but they can't. So again, fuck you"?

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  8. Re:North Caroliners by Darinbob · · Score: 2

    Except that the typical voter doesn't know this is happening or doesn't care. There's also a big notion in the south that the courts must not get involved in politics, while at the same time politics ensures that bad laws can never be overturned. US Congress could act here, as this is basically interstate commerce that's involved. But they're bought and paid for just as much as the South Carolina legislators.

  9. Re:North Caroliners by fnj · · Score: 2

    You can IMAGINE whatever you want. As to voting out their legislators, consider that this is one single issue, and not one that is very prominent on the radar of most of the state's voters. As far as I can see, it only affects a very small number of citizens in one single town.

    It's the same principle as the US Congress. Anyone with two brain cells to connect together knows that on the whole they are a bunch of rat bastards, but hardly anyone has a problem with HIS OWN PARTICULAR representative.

  10. Re: North Caroliners by Anonymous Coward · · Score: 3, Insightful

    I have plenty of problems with my own particular representative thank you very much. My whole life I've been 'represented' by corporate friendly religious pandering stooges whose opinions for the most part couldn't be more opposite to my own.

    Every time a bad law is debated or one of these corporate giveaways like TPP comes up, I already know how my particular useless waste of flesh will vote on it without even looking. I just ask myself what vote would be in favor of actual human citizens and sure enough he'll vote the opposite.

  11. Re: not profitable by Anonymous Coward · · Score: 2, Insightful

    What a bunch of libertarian infantile bullshit, starting with the 'taxes are coercion' crap and ending with the usual selfish 'it's being spent on something I personally disapprove of and therefore is morally wrong because reasons' type argument.

    First off, jackass, people form governments to, you know, govern. Providing essential services has been a government function since before the founding of this country even though libertarians love to rewrite history in their deluded brains to pretend it isn't.

    One really can't function economically without Internet access in today's society. The corporate monopolists you seem to have no issue with can't be bothered to even go rip these people off, but they bought a law to make people solving their own problems in a clever manner illegal because they're afraid that people in areas that they do rip off will get ideas.

    Where I live I have one cable company to 'choose' from. I also get natural gas from a city owned utility. Guess which entity provides responsive service at a reasonable price? If the gas utility were private, the only thing that would change is my prices would go up because of profits and my service would go down, kind of like what happened when our electric utility which had been owned by a reasonably small company got bought out by an aggressive rent seeking corporation. Their behavior of course is to raise prices and defer maintenance such that when we had a minor brush with the edge of a hurricane recently there were massive outages that went on for days as their crumbling ill maintained infrastructure couldn't handle it.

    You want coercion, it's being forced to pay money to monopolists and oligarchs. Some businesses have competition, none of them welcome it. All of them do whatever they can to be rid of it. At least with government I get a vote.

  12. Re:not profitable by squiggleslash · · Score: 4, Informative

    Leaving aside the "OH NOES! TAXES!" BS, the statement you quote never suggests that supplying Internet access is "charitable" or "unprofitable". It says "the majority of the area does not present enough profitability to attract the private-sector investment", not "the majority of the area does not present profit to attract the private-sector investment".

    The private sector generally doesn't invest in projects to make small amounts of profit, especially if they're expensive. There are many, many, examples of projects that would more than pay for themselves that you'll never see the private sector take an interest in, because the promise of a 10% return here for a medium risk is unattractive compared to the promise of 100% there, for little or no risk.

    As for taxes, I personally like paying taxes. As a wise man once said, in return I get civilization.

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  13. At one point in life... by Anonymous Coward · · Score: 2, Insightful

    ... you will have to choose between the Law and Morals.

    I have a friend who gets very angry when he talks about Morals; he has no qualms about the concept that the Law must followed however terrible the consequences. He's otherwise a very balanced person.

    IMHO the Law is a tool which we produced to help us live in harmony; if it is used to damage the interests of the people, one has to question if that tool is working well according to the original intent (aka the "Spirit of the Law") -- reference: https://en.wikipedia.org/wiki/Letter_and_spirit_of_the_law .

  14. NC is Not in the 6th Circuit by JenovaSynthesis · · Score: 3, Interesting

    This court decision is not binding on the state of North Carolina. The Sixth Circuit covers Michigan, Ohio, Kentucky, and Tennessee. North Carolina is in the Fourth Circuit. Decisions in other circuits are merely persuasive authority, not binding. Only the Supreme Court can do that.

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  15. Split the company by Anonymous Coward · · Score: 2, Interesting

    Each municipality should have an independent company that works in partnership with the other. With a minimal of overhead, they will be able to sidestep state law.

  16. Re:This reminds me of the old USSR by WolphFang · · Score: 2

    Preventing competition via laws/government/regulations is not a free market. It is Mercantilism/Corporitism.

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  17. Re:not profitable by dwillden · · Score: 4, Insightful

    Based on that flawed logic, most of the rural US would still be lacking power and phone service. Rural communities using taxes to establish essential utilities is a long standing tradition in this nation and is a big part of what has made this country so strong.. Libertarians have some great ideas but usually take them too far.

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  18. Re:What happened to the market ..... by Fjandr · · Score: 2

    The US has never, for a second, had a free market economy any larger than a farmer's market.

  19. Riot! Burn down AT&T and Comcast infrastructur by jfdavis668 · · Score: 2

    The National Guard is busy in Charlotte, there will be no one around to stop the riot!