In recent years, an increasing number of local communities have started looking into the possibilities of developing broadband infrastructure. One of the reasons they often cite for their investigations is the desire to increase competition for broadband services. In California, public interest groups recently put out the alarm about AB 1366, a bill introduced in February that will strengthen the power of monopolies in the state.
The Electronic Frontier Foundation (EFF) posted an article about the bill in March, in which they described AB 1366 as a state-level version of “the Federal Communications Commission’s lead to abandon oversight over a highly concentrated, uncompetitive market.”
AB 1366 removes the 2019 sunset from a bill passed last year that prohibits state or local governments from taking any steps to regulate or create standards for VoIP or broadband services (“Internet enabled services”). The ban on state and local “laws, rules, regulations, ordinance, standards, orders or other provisions” will be permanent if AB 1366 passes. California will relinquish oversight of the activities of the major national Internet access companies, such as AT&T and Comcast, putting all trust in these companies and removing local and state authority.
Bad News for New Entrants
If California denies itself and its local governments the ability to make policy changes, it will also prevent cities from taking action to encourage new entrants into the marketplace. Californians will suffer and monopoly providers will gain by removing the power to increase choice.
In San Franciso, the city passed an ordinance that banned a traditional practice in which landlords prevented competitive ISPs from entering their buildings in exchange for kickbacks from one ISP that wanted to serve the entire building. As a result, new entrants, such as fixed wireless Internet access company Monkeybrains, had no access to potential...Read more