North Carolina Enacts Pro-ISP, Anti-Municipal Broadband Law

North Carolina Governor Bev Perdue has announced that she won’t sign or veto the controversial bill on municipal broadband sent to her desk by the state legislature. The legislation reigns in the power of cities and towns to commission their own broadband networks. Perdue’s inaction means that House Bill 129 is a done deal.

“I believe that every school, household and business in North Carolina — no matter where they are — should have access to efficient and affordable broadband services,” the governor explained in a public statement.

There is a need to establish rules to prevent cities and towns from having an unfair advantage over providers in the private sector.  My concern with House Bill 129 is that the restrictions the General Assembly has imposed on cities and towns who want to offer broadband services may have the effect of decreasing the number of choices available to their citizens.

The cable industry backed law forces new muni-networks not to sell their high speed internet to neighboring areas, restricts their ability to offer low introductory prices to consumers, and requires them to pay all taxes “that would apply” to a private provider.

But having expressed her concerns (shared by many North Carolina cities), Perdue said that she would do nothing, expecting others to take action instead.

“I call on the General Assembly to revisit this issue and adopt rules that not only promote fairness but also allow for the greatest number of high quality and affordable broadband options for consumers,” her commentary explains.

The non-decision comes following a last minute plea from Stanford scholar Lawrence Lessig to Perdue, a Democrat, to veto the bill. “Opponents of community broadband argue that it is “unfair” for broadband companies to have to compete against community-supported networks,” his appeal noted.

But the same might be said of companies that would like to provide private roads. Or private fire protection. Or private police protection. Or private street lights. These companies too would face real competition from communities that choose to provide these services themselves. But no one would say that we should close down public fire departments just to be ‘fair’ to potential private first-responders.

Lessig’s commentary acknowledged that given the Republican majority in North Carolina’s state legislature, getting her veto sustained would be a challenge.

“But if you took this position of principle, regardless of whether or not you will ultimately prevail, you would inspire hundreds of thousands to join with you in a fight that is critical to the economic future of not just North Carolina, but the nation,” his statement concludes.