Most of my readers are probably aware that last year the FCC voted to overturn the restrictions on municipal competition in Tennessee and North Carolina. Specifically, the FCC gave permission to the Electric Power Board of Chattanooga and to the City of Wilson, North Carolina to extend their fiber networks to provide broadband to nearby communities.
But both states appealed the FCC decision and this past August the courts overturned the FCC order in favor of the states. The FCC has decided to not appeal that court decision.
During the time when the FCC order was in effect, the City of Wilson extended their Greenlight fiber network and brought fiber to the tiny town of Pinetops, NC. This is a small town that had a population of 1,374 in the 2010 US Census. When the Courts overturned the FCC rules, Wilson’s City Attorney interpreted the reversal of the FCC ruling to mean that Wilson had no authority to serve broadband in Pinetops.
The local governments of both Wilson and Pinetops have appealed to Governor Pat McCrory to allow the broadband service to continue. The mayor of Pinetops reports that 31% of the households in his community are below the poverty line and that the network had brought the opportunity for the town to do better economically. The town has been hoping to grow by attracting new residents.
In the telecom world we are often faced with similar situations, where the industry will react to a regulatory ruling that might eventually be overturned. We just saw this recently as the FCC took actions related to net neutrality in 2016 at the same time that the net neutrality rules were under appeal. The large incumbent telcos and cable companies routinely appeal decisions they don’t like from the FCC, and it has become somewhat common practice for parties to act as if the new rules are in effect, even during the appeal process.
It seems that Chattanooga took a conservative approach and did not expand their network, waiting for a resolution of the Court appeal. But Wilson expanded their network when the FCC said they had the right to do so, with the uncomfortable result that we now have a small town that has lost access to fast broadband. Customers have been disconnected as Wilson turned off the network.
One would hope that the powers-to-be can find a way to keep the broadband going in Pinetops. It’s very easy for lawmakers and regulators who live in urban areas with good broadband to fail to understand how hard it is for rural households to live without broadband. It’s particularly cruel to provide broadband to a small town like Pinetops and then withdraw it.
Wilson constructed the network using regulations that were in place at the time of the construction. It’s also true that today, after the appeal the same fiber construction would no longer be allowed. But common sense would say to grandfather the broadband in Pinetops while restricting Wilson from constructing fiber to any additional communities.
Unfortunately, common sense often doesn’t prevail in these situations. I’m sure that AT&T and Comcast have put pressure on the state to rollback the broadband, even if those companies are not providing a decent alternative in Pinetops. But these big companies have taken the position that all competition is bad and they take extraordinary measures to stop competition when they can. I just hope that somebody in North Carolina uses some common sense and compassion to let the folks in Pinetops keep the broadband they were recently given. To not do so would be inhumane. It would be surreal if the people in Pinetops are denied broadband when the fiber is already on their streets or connected to their homes.