Not so fast Frontier and CenturyLink: Oregon regulators raise the bar for gigabit tax breaks

Oregon utility commissioners overruled their staff, opting for a broad definition of the term "broadband" in a rebuke to two of the state's largest telecommunication companies. The three commissioners agreed during a public hearing in Salem (OR) that broadband means anything faster than dial-up connection, at least as it applies to determining eligibility for tax breaks Oregon lawmakers approved in March.

That definition encompasses nearly all Internet service in the state. Commission staffers had proposed a narrower definition, classifying broadband as service with download speeds of 10 megabits per second and uploads of 3 Mbps. In practical terms, Nov 3's decision means it will be harder for Frontier Communications and CenturyLink to qualify for the new tax breaks. Those companies warned lawmakers the decision may slow their rollout of hyperfast "gigabit" Internet service in Oregon.