Bloomberg Law: Municipal Broadband War Reignited in Biden’s Infrastructure Push

President Joe Biden wants to make it easier for cities to build and operate their own broadband networks, in competition with companies like Comcast Corp. and Verizon Communications Inc., to expand internet access as part of his sweeping infrastructure proposal.

Biden’s push to override state restrictions on municipal networks renews a partisan fight over whether government-owned broadband networks can provide an affordable high-speed internet alternative to private carriers. The president is proposing lifting barriers “that prevent municipally-owned or affiliated providers” from “competing on an even playing field with private providers,” the administration said in a summary.

Municipal broadband networks vary widely in coverage and structure, but one model that has proved popular are citywide fiber optic networks, such as in Chattanooga, Tenn., that are funded through bonds repaid by revenues from the network. Some cities operate a fiber broadband network through a public utility, while other localities have partnered with private companies.

The pandemic has heightened the importance of having reliable and affordable internet access. Democrats argue that municipal networks can play a crucial role in expanding service. About 4.4% of Americans continue to lack access to fixed broadband internet at the FCC’s benchmark speeds, according to agency data. The percentage of unserved households climbs to 17.3% in rural areas.

“The pandemic obviously woke many states up to the essential nature of broadband—31 governors mentioned broadband in their state of the state,” Gigi Sohn, a former Democratic FCC official, said. “This really is a prime time to reverse this policy.”

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