September 2016

[Commentary] Barring an act of Congress to modify Federal Communications Commission powers (don’t hold your breath), the battle over municipal returns to the statehouses. But it won’t be as hopeless there as many local control issues are.

In most cases, pre-emption disputes pit rural Republican state legislators against progressive urban policies like the minimum wage or a fracking ban. In Tennessee and North Carolina, there’s a twist: Chattanooga and Wilson already have high-speed internet, both public and private. It’s their rural neighbors that suffer from telecom companies’ reluctance to expand good service into low-density areas. In Tennessee, for example, municipal broadband remains legal—but expanding it beyond the provider’s existing coverage area is not allowed. Chattanoogans are allowed to keep their lightning-fast internet; it’s residents outside the EPB’s coverage area that suffer. “For several years we’ve been fielding requests from neighboring communities who have hardly had access, asking: ‘Would you guys bring services to us?’ ” explains Danna Bailey, vice president of communications at EPB. “And we’ve said: ‘We’d love to, but Tennessee state law prohibits it.’” That turns the traditional political calculus of state-vs.-city pre-emption bills on its head. In Tennessee, a state law to loosen the regulation of public broadband is being sponsored by a pair of Republicans: Sen. Janice Bowling and Rep. Kevin Brooks. And it was a Republican state senator, Todd Gardenhire of Chattanooga, who said, “AT&T is the villain here.” Proponents of public broadband see a parallel to the rollout of the electrical grid, which ignored rural areas in favor of population clusters where electricity provision was more profitable. “We see broadband in the 21st century as electricity was in the 20th,” said. Bailey. “To participate in this economy you’ve got to have access. Consumers are really starting to demand it, so legislators are hearing from their constituents: ‘I’ve got to have broadband. I have to drag my kid five miles down the street to McDonald’s to do her homework.’ ”