A federal appeals court decision this week affirms state law over local authority when it comes to municipal broadband delivery, though the case could have a future before the U.S. Supreme Court. The U.S. 6th Circuit Court of Appeals on Wednesday sided against the Federal Communications Commission (FCC) on that agency's power to preempt state laws limiting the expansion of broadband services offered by municipalities. The court case centered on such offerings from Wilson and from Chattanooga, Tenn., where municipally-run, superfast Internet has been credited as a boon to business growth and residents' access to the web. North Carolina and Tennessee have laws limiting how cities can offer that service, such as with territorial or city-border restrictions. The FCC in 2015, however, issued a ruling preempting portions of those state laws seen as barriers to broadband access and competition. The states fought back in court, leading to Wednesday's appellate decision. Overturning the FCC's ruling, the court found that federal law doesn't explicitly support such preemption of state laws. Click here to read the court's decision.
The National League of Cities in a statement called the court's decision a blow to local decision-making authority. "City leaders -- representing the most trusted level of government -- know that high-speed Internet is not a luxury, but a necessity to bring jobs, quality healthcare and education to their residents," said NLC CEO Clarence E. Anthony. "The cities of Chattanooga, Tennessee, and Wilson, N.C., have thoughtfully invested in the broadband infrastructure that their communities want and need, and the FCC has championed these and other municipal efforts." The ruling against the FCC comes at a time when the improvement of digital connectivity is most needed, Anthony added.
Despite the outcome, the appellate ruling notes the benefits of Wilson's Greenlight community broadband, the city-run gigabit Internet service. "Each of the top seven employers in Wilson is a customer of the fiber network," it states. "Local schools benefit from using Greenlight, as does the City's public library." The associated free WiFi the city offers downtown "in turn frees up money" for businesses there, the ruling adds. In a summary, it notes that Wilson and Chattanooga sought expansion "because the private cable providers in their areas were unsatisfactory to the local residents and businesses." As such, the ruling notes that the cities were "concerned with more than just the 'bottom line' -- they are also concerned with benefitting the communities they serve."
The League had praised the prior FCC ruling that supported municipalities' authority with broadband. At the time, League Executive Director Paul Meyer noted that high-speed Internet in North Carolina's communities is vital to "promote educational attainment and bolster economic opportunities for all North Carolinians, whether the Last Mile provider is a municipal government or a private company. It is appropriate that individual municipalities have the tools and decision-making authority available to them to combat the vastly different challenges facing them." The City of Wilson was an intervenor in the appellate case. The League filed an amicus brief in support of the city. As of the time of this writing, it was unclear whether the FCC would petition to the Supreme Court to preserve its ruling in favor of municipalities. Click here, here, here and here for media coverage. The court decision landed around the same time as reports that Google plans to test speedy fiber Internet and "experimental transmitters" in locations across the country, including the Triangle.
