Freshly proposed legislation in Missouri would prohibit towns and cities from using federal funds to improve broadband access in areas telecom monopolies already claim to serve. It’s just the latest attempt by incumbent telecom giants to ensure that an historic wave of federal broadband funding won’t harm their revenues by boosting local broadband competition.
Missouri SB 1074 - Sponsored by Sen. Dan Hegeman (R., District 12), proclaims that “no federal funds received by the state, political subdivision, city, town, or village shall be expended for the construction of retail broadband internet infrastructure unless the project to be constructed is located in an unserved area or underserved area.” It passed the Senate Commerce, Consumer Protection, Energy and the Environment Committee on April 13th.
According to the bill, the Missouri Office of Broadband Infrastructure would certify the project prior to a political subdivision receiving authorization. Before being authorized, the office would be mandated to check with incumbent broadband providers to ensure that they don’t offer service in the specified area.
The bill prohibits federal funding for any projects in areas where a single provider already receives funding to deliver 100 Megabits per second (Mbps) download speeds. If it passes, it also allows Internet Service Providers (ISPs) to submit written challenges to grant applicants within 45 days. The Department of Economic Development would then be tasked with determining the truthfulness of each challenge.
Only if applicants can prove they’re servicing an “unserved” or “underserved” area (which again is defined by flawed FCC Form 477 data that routinely overstates existing coverage and speeds using broadband definitions set at ankle height) will the applications be deemed valid.
But the bill gives incumbent monopolies even greater leverage in the challenge process, by letting them challenge a deployment if an incumbent ISP has “taken affirmative steps to begin the process of construction to provide broadband,” or “has been designated funding through federal programs to support the deployment of broadband” in the targeted areas.
As such, it looks like the current version of the bill would allow incumbent ISPs to block federal funding to competitors if...Read more