AT&T: Cities should never offer Internet service where ISPs already do or might later

With the Federal Communications Commission considering whether state laws banning municipal broadband should be invalidated, AT&T says that municipalities should simply never create their own broadband networks unless there’s virtually no chance that private Internet service providers will ever offer service to their residents.

“GONs [government-owned networks] should not be utilized where the private sector already is providing broadband or can be expected to do so in a reasonable timeframe,” AT&T said in a filing with the FCC. “Although many GONs have failed, or at least failed to live up to expectations, GONs can nonetheless discourage private sector investment because of understandable concerns by private sector entities of a non-level playing field. And any policy that risks diminishing private sector investment would be short-sighted and unwise.” AT&T isn't opposed to government handouts, though, as long as they are flowing to the private sector. Community broadband networks “should not receive any preferential tax treatment,” AT&T argued. Only private companies should be given special treatment, the company said. “Indeed, any tax incentives or exemptions should be provided, if at all, to private sector firms to induce them to expand broadband deployment to unserved areas,” AT&T wrote.