Ga. Senator seeks restrictions on public broadband service

A state Senate leader is calling for more restrictions for local governments looking to get into the business of offering broadband services.

Sen. Majority Leader Chip Rogers, (R) Woodstock, has introduced SB 313 that would require local governments hold public hearings and a referendum before beginning such a venture.

He says private companies can better operate such businesses without resulting in sustained losses of taxpayer dollars.

“We’re not outlawing a local government entity (from) doing this…  but if they’re going to compete, then they need to play by the same rules and they need to go to the voters and ask the voters if it’s OK that they spend all these dollars before they go out and spend them,” he says.

Rogers cites the city of Marietta’s money-losing venture with the creation of FiberNet in the late 1990’s. The city finally sold the company in 2004 to American Fiber Systems at a loss of $24 million.

His Broadband Investment Equity Act also prevents local governments from discriminating against access to rights-of-way or poles and ensuring they provide reasonable rates, terms and conditions to private providers.  Public providers would also be prohibited from paying for communication networks with tax revenue.

The Georgia Municipal Association calls the additional requirements burdensome and unnecessary for local governments.