Update: Apparently the bill was pulled from the Committee today. No word yet of what the next step is.

The Senate Finance Committee of the North Carolina Legislature will vote today on a bill to create more barriers for publicly owned networks, essentially preventing competition for communities throughout the state - a great boon to Time Warner and AT&T who are pushing the bill. The meeting is in Room 544 LOB and the vote will occur sometime after 1:00.

Stop the Cap! has a good list of people you can call about this bill as well as a discussion why it is poor policy.

Progressive States Action sent out an alert about the legislation with the following information that they have graciously allowed me to repost here:

Analysis of SB 1209: “No Nonvoted Local Debt for Competing System”

SB 1209, dubbed the "No Competing System" bill by broadband advocates, places North Carolina at a disadvantage compared to other states and global competitors by limiting municipalities’ ability to ensure that all North Carolinians have access to affordable, top-quality, and high-speed broadband. Universal access to high-speed broadband networks, combined with programs aimed at increasing broadband adoption, represents one of the best ways to reinvigorate a struggling economy. Broadband networks also provide state and local governments with a means to implement cost saving mechanisms, provide better access to needed services and stimulate job and business growth.

North Carolina communities have lost their tobacco, furniture and textile jobs to competition overseas. Currently, the unemployment rate in North Carolina is approximately 11.1%, representing the tenth highest unemployment rate in the nation. In some underserved areas without adequate access to broadband, the unemployment rates are even higher, reaching close to 17%. At a time when North Carolina needs more than ever to invest in 21st Century infrastructure such as broadband to build jobs for the future, SB 1209 impedes local governments from taking effective action. North Carolina’s largest cable provider raised rates 5-50% each year in 2007 and 2008 in all communities except those where municipalities were providing competitive cable service. By allowing...

"My issue is that cities should not be competing with private enterprise." - Senator Hoyle of North Carolina

Given this Senator's opposition to the public sector competing with the private sector, I assume he is fighting just as hard to shut down the libraries (or have Borders and Barnes and Noble neglected to donate enough to his candidacy?), as well as the schools (there are private schools), and the police (security guards are readily available on the private market). This is not merely a snarky attack on someone with whom I disagree, but a nod to the very serious problem that these massive companies can push their protectionist legislation everywhere.

Senator Hoyle, the driving force behind using state law to protect incumbent providers like Time Warner and AT&T from competition in broadband admitted his motivation at the beginning of a video from the recent committee hearing available on Stop the Cap!.

In it, the Senator also makes it clear that he is either unaware of what his legislation does or he is lying about it when he claims it does not affect the communities that have already built the most state-of-the-art networks in the state. His legislation would severely handicap each of them from upgrading despite his false claims that they are exempted. The post on Stop the Cap offers more background and discussion and I encourage readers to check it out.

As usual, I'll add my own short commentary about it. I previously explained why this bill's requirement for cities to use General Obligation Bonds is terrible policy.

Senator Hoyle claims the town of Mooresville did not know what they were doing. Listening to his discussion, it is abundantly clear that he doesn't know what he is talking about. I spoke with folks from Mooresville before they bought the cable system and I have spoken with them since. They got screwed by Adelphia and Time Warner in the deal and have had to take on additional debt. However, the idea that they have failed or were foolish in starting the network because they had an operating loss demonstrates the Senator's ignorance on broadband networks.

When anyone takes over a poorly maintained, old network and...

Thanks to Catharine Rice, who tipped me off to FCC Commissioner Mignon Clyburn's presentation at the SEATOA Conference yesterday. SEATOA is a regional group of states from the southeast of the US that are part of NATOA. Commissioner Clyburn noted that the FCC and the National Broadband Plan oppose state preemption of local broadband networks.

Thus, the Plan recommends that Congress clarify that State and local governments should not be restricted from building their own broadband networks. I firmly believe that we need to leverage every resource at our disposal to deploy broadband to all Americans. If local officials have decided that a publicly-owned broadband network is the best way to meet their citizens’ needs, then my view is to help make that happen.

One example of a town that took control of its own digital destiny – Bristol, Virginia saw additional jobs created in that area. And last month I heard Lafayette, Louisiana’s City-Parish President, describe the development of economic opportunities in his city, that were a direct result of the fiber network built by the community. Right here in North Carolina, I understand that Wilson and Salisbury are trying to invest in fiber optic systems, that they hope will transform their local economies.

When cities and local governments are prohibited from investing directly in their own broadband networks, citizens may be denied the opportunity to connect with their nation and improve their lives. As a result, local economies likely will suffer. But broadband is not simply about dollars and cents, it is about the educational, health, and social welfare of our communities. Preventing governments from investing in broadband, is counter –productive, and may impede the nation from accomplishing the Plan’s goal of providing broadband access to every American and every community anchor institution.

I can only hope that North Carolina's Legislature listen to this speech before they vote on preempting communities from building broadband networks. However, as documented at Stop the Cap, Time Warner and other telcos are able to talk pretty loudly with their campaign contributions.

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Time Warner continues to fight for monopoly protections in North Carolina with legislation to hamstring municipalities, preventing them from building the essential broadband infrastructure they need. While I was in Lafayette at FiberFete, the North Carolina Legislature was considering a bill to preempt local authority, essentially shutting down the prospect for any cable and broadband competition in the state.

Jay Ovittore has covered this legislation in depth.

Salisbury small businessman Brad Walser, owner of Walser Technology Group testified that North Carolina community’s new municipal broadband network Fibrant would meet his company’s needs for broadband capacity not available from commercial providers. Walser noted Salisbury is suffering from an unemployment rate exceeding 14 percent. Advanced broadband, he believes, could help the city attract new businesses that will help create new, high paying jobs. Fibrant is expected to launch later this year.

Folks from Chattanooga also testified about the benefits of publicly owned networks. The public outcry on the issue has been helpful:

All of your e-mails and calls have been getting through to the legislators. This kind of attention makes them nervous and I ask you to continue. I can assure you that we here at Stop the Cap!, along with Communities United for Broadband, Broadband for Everyone NC, and Save North Carolina Broadband are going to ratchet up attention on this issue.

If you live in North Carolina, definitely read the bottom of the post on how to help.

Unfortunately, the state legislature seems to have more nitwits than anyone who knows anything about networks: one State Senator suggested wireless will be replacing fiber soon - one wonders how the wireless tower will connect to the Internet... magic?

North Carolina could become the 19th...