Our Uneven Regulatory System

The Florida Legislature recently passed a bill that brings poles under state jurisdiction for any electric cooperative that elects to enter the broadband business. That would be a change from current regulatory rules that exempt cooperatives and municipally-owned electric companies from federal and state oversight of pole regulation. Over the years, State legislatures have passed laws that create regulatory rules that apply only to specific entities and not to everybody. Laws affecting electric cooperatives related to broadband are a good example. Over the last several decades, a lot of states passed laws that prohibited electric cooperatives from entering the broadband business. These laws were clearly prompted by telephone and cable companies that didn’t want a new competitor. However, a lot of legislatures reversed these laws due to pressure from the public to allow their local electric cooperatives to bring them fiber broadband. Most of the legislation that created exceptions has been aimed at squelching broadband competition. A lot of states have laws that either prohibit or restrict municipalities from entering the broadband business. Most of the restrictions against municipal broadband are written in such a way as to make it seem like there is a path for cities to provide broadband. But most such laws often have a kicker that makes it extremely difficult for a municipality to comply. As the new Florida law shows, it’s a never-ending battle with incumbents trying to legislate away competition.