U.S. Rep. Pete Sessions (R-Texas) wants to take state and local governments
out of the broadband business. It’s for their own good, the former
Southwestern Bell executive said.
Under the terms of the Preserving Innovation in Telecom Act (H.R. 2726)
introduced by Sessions, state and local governments would be prohibited from
offering telecommunications, telecommunications services, information
services or cable service in any geographic area in which a private entity
is already offering a substantially similar service.
Governments already offering telecom services would be grandfathered under
Sessions’ legislation. The bill also provides that in markets where private
entities fail to offer service, municipal governments would be permitted to
build networks and offer service.
“Rather than investing in vital public works projects, some local and state
governments are investing their limited funds into telecommunications
projects and putting taxpayer dollars at risk,” the five-term congressman
from Dallas said in a statement. “By choosing to invest their limited
resources in telecommunications infrastructures, municipal governments often
duplicate services already provided by a private entity.”
Gina Vaughn, Sessions’ communications director, told
internetnews.com in an e-mail response, “We believe … that under normal
circumstances private providers are the ones with resources at their
disposal to make the upgrades that come with continually evolving
technology.”
She added, “Municipal governments, with the many public works demands they
face, are not in an ideal situation to be pouring money into continued
telecom infrastructure updates.”
Over the last several years, numerous cities, most notably Philadelphia,
have considered launching their own wireless networks in direct competition
with local providers. Republicans in particular are opposed to cities
competing with private enterprise.
Earlier this week, Florida Gov. Jeb Bush signed a law similar to Sessions’
national proposal prohibiting Florida cities from offering broadband if
competitive services already exist.
Pennsylvania pushed through laws in December restricting municipal-backed
broadband services, with Philadelphia receiving an exemption from the new
law. The city plans to sell its wireless broadband service to homes and
businesses, while providing free access in public spaces.
“My goal in introducing this legislation is to discourage municipal
governments from wasting taxpayer funds on building duplicative
infrastructure, while at the same time encouraging private companies to offer
continually innovating service in underserved areas by removing the specter
of government competition,” Sessions said.
Before winning election to Congress, Sessions spent more than 16 years at
the Bell Labs in New Jersey, and served as a Southwestern Bell district
manager for marketing in Dallas.
