April 1, 2011 By Brian Heaton
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A bill that would place restrictions on the establishment of municipal broadband networks is gaining traction in North Carolina. The proposed legislation, House Bill 129, was passed by the state’s House of Representatives in an 81 to 37 vote on Monday, March 28, and is making its way through the state Senate.
The bill, which has sparked controversy across the state, is called the “Level Playing Field/Local Gov’t Competition” act. The legislation would require communities to alter the way networks are financed and deployed. One section of the bill mandates that a municipal network not price services below their actual costs. The intent of the language appears to be an attempt to protect companies from unfair competition, even though private companies regularly offer incentive deals to attract customers.