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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

26 of 222 comments (clear)

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

    Arrest anyone that tries to shut it off.

  2. 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.

  3. 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.

  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 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.

  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 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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    5. 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)..

    6. 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 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.

  9. 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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  10. 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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  11. 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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  12. 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.

  13. 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.

  14. 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.

  15. 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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  16. 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.