City-run Internet services still in limbo after FCC vote

After the nation’s top Internet regulator moved to allow two cities to offer broadband service to their residents, don’t expect a lot of other cities to follow. Expect lawsuits. About 18 other states have laws that restrict cities from building or expanding government operated local broadband networks. The laws are a result of heavy lobbying and spending over the years by large telecommunications companies such as AT&T, Comcast and Time Warner Cable. The Federal Communications Commission’s favorable ruling may be viewed as opening the door to towns in those states to file similar petitions of Chattanooga (TN). But that’s not likely to happen soon, said city officials overseeing networks and broadband experts.

First, cities are waiting for the FCC to release their final ruling, probably later in March, on preempting the Tennessee and North Carolina laws. The details may affect how other towns view their chances of getting a favorable FCC decision.Second, it is likely the FCC’s ruling will be challenged in court, and cities want to wait for the judges to weigh in before paying lawyers to petition the FCC. Any suit will have a chilling effect on cities.