Tom Wheeler’s Other Web Takeover

[Commentary] Federal Communications Commission Chairman Tom Wheeler plans to seize regulatory control over the Internet by declaring private broadband carriers to be public utilities. Less well known is that he also wants to usurp state authority to regulate municipal broadband networks.

Local governments are forever seeking opportunities to diversify their, er, investments in sports stadiums, convention centers and such. Many lately have been getting into broadband. Municipalities have built some 180 fiber-optic networks in addition to about 75 cable services. Most operate as de facto public utilities with an implicit, if not explicit, taxpayer backstop. Rather than driving competition, municipal broadband can undercut the private market. Because they benefit from public financing and right-of-way, munis can price services below private carriers. And taxpayers and in some cases electric-utility ratepayers on the hook if the ventures go belly up. Chairman Wheeler may figure that liberal ends justify illiberal means, but he is threatening serious damage to the federal system and local self-government.