Big Cable, President Obama spar over government-run broadband networks

President Barack Obama continued his push for municipal broadband networks, leading to reactions from cable companies, Commissioners of the Federal Communications Commission, and others who claim government-run networks are often taxpayer rip-offs.

“While government run networks may be appropriate in rare cases, many such enterprises have ended up in failure, saddling taxpayers with significant long-term financial liabilities and diverting scarce resources from other pressing local needs,” said Michael Powell, former FCC Chairman and current head of the National Cable & Telecommunications Association. The American Cable Association, which represents smaller cable companies, said it “applauds President Obama for recognizing the key role Cedar Falls Utilities and other municipal providers play in bringing high-speed broadband to consumers.” But these small providers should not have to face new rules, the ACA said.