http://www.politico.com/story/2015/01/sources-barack-obama-mayors-internet-114233.html?hp=b1_c2Obama aims to unleash broadband boost
By Brooks Boliek and Alex Byers
1/13/15 5:53 PM EST
Updated 1/14/15 7:45 AM EST
President Barack Obama on Wednesday will push for an end to laws that keep cities and towns out of the high-speed Internet business.
During a speech in Cedar Falls, Iowa, Obama will ask the Federal Communications Commission to override state laws that restrict community-run broadband networks, provide new tools to mayors who want to build such networks, and propose revitalizing a program of grants and loans for city-run broadband projects.
The president’s announcement is part of a rollout of tech-related initiatives that will be part of his Jan. 20 State of the Union address. The White House contends that allowing municipalities to get into the broadband game — and compete with the likes of AT&T and Comcast — will inject new competition into the market for high-speed Internet services.
“Broadband matters, but a lot of us have a common frustrating experience,” said Jeff Zients, director of the National Economic Council. “Even when we are unhappy with the speed and performance of our Internet service, we don’t have a choice. There are no alternative providers we can switch to.”
Obama’s comments are likely to pour more fuel onto the smoldering fight between Internet-service providers and local governments.
Cedar Falls Utilities — which will host the president’s speech — has been a leader in the municipal movement to provide an alternative to major ISPs. The utility already offers cable-TV and Internet service to local residents with speeds of up to one gigabit per second — the super-fast gold standard for U.S. broadband.
Incumbent telecoms like AT&T and Time Warner Cable have lobbied extensively around the country to ensure they don’t have to compete directly with such municipal projects. About 20 states have laws that make it more difficult for local governments to invest in or expand community broadband networks.
The FCC is considering a request by city-run networks in Chattanooga, Tennessee, and Wilson, North Carolina, to override state laws that prevent them from expanding. The White House highlighted both cities in a statement previewing the president’s speech Wednesday.
FCC Chairman Tom Wheeler wants to roll back bureaucratic limitations that put local governments, especially in rural areas, at a disadvantage against private-sector broadband providers. Republicans have sternly cautioned Wheeler not to meddle, saying federal bureaucrats have no role in telling states how to run their affairs.
Some public interest groups, fearing large companies are getting too much control over the Internet, point to local government-administered broadband service as an alternative to corporate networks. The issue has taken on added significance as the FCC reviews a series of major telecom mergers and writes new net neutrality rules that could shape the future Internet landscape.
Cedar Falls Utilities previously received funds from the Broadband Initiatives Program, run by the Agriculture Department’s Rural Utilities Service as part of the 2009 stimulus package. Obama aides say it’s a program he wants to renew.
The Government Accountability Office last year deemed the program to be in trouble; several projects were canceled, and it was decried by Republicans as wasteful.
