The Federal Communications Commission today voted to pre-empt two state laws that restrict the deployment of city-owned broadband networks.
The agency approved two petitions filed by officials from Tennessee and North Carolina, who want to expand municipal networks in Chattanooga and Wilson, respectively.
The vote was split down party lines, however, with the Republican commissioners arguing that the FCC does not have the authority to pre-empt state laws, and Democrats insisting that the move cuts the red tape that prevents residents in the region from getting the fastest broadband service available.
Commissioner Mike O'Rielly expressed his "profound opposition" to the move, as it goes against the "foundation of U.S. economy and free enterprise."
"It is not the government's role to offer services instead of or in competition" with private companies, he said.
FCC Chairman Tom Wheeler said he does not take the issue lightly. But the laws in place in Tennessee and North Carolina, he said, are more harmful than helpful.
The FCC is now "cutting away red tape," Wheeler said. Congress has instructed the agency to encourage the deployment of broadband and promote competition in broadband, and today's vote does just that, he said.
"What we too often lose sight of in our discussions in Washington is that these issues that we're talking about have a very human face," Wheeler said, before introducing local business owners and residents who have had issues gaining access to broadband. "When local leaders have their hands tied by bureaucratic, state red tape, local business and residents are the ones who suffer the consequences."
The Electric Power Board (EPB) in Chattanooga provides gigabit fiber Internet, voice, and video, as well as smart grid services. EPB cannot expand into neighboring areas, however, because state law says it can only provide service in its electric service territory.
Wilson, North Carolina's Greenlight service, meanwhile, also provides gigabit Internet, voice, and video to residents and free Wi-Fi in downtown areas. Greenlight wants to expand to the surrounding five counties, but state law imposes various restrictions, including a ban on providing service at a lower fee than major ISPs.
The FCC's action only affects the laws in Tennessee and North Carolina. There are approximately 21 states with laws that restrict city-owned broadband networks right now; if the other 19 states want the FCC to intervene, they have to file their own complaints with the agency, like Tennessee and North Carolina did.
According to the FCC, a state can reject a city's request to provide broadband service. But once they are approved to enter the market, the state cannot impose regulatory burdens that would prevent the expansion of a city network.