16 U.S. States Still Ban Community-Owned Broadband Networks Because AT&T and Comcast Told Them To
For years we’ve noted how U.S. broadband is expansive, patchy, and slow thanks to mindless consolidation, regulatory capture, regional monopolization, and limited competition. That’s resulted in a growing number of pissed off towns, cities, cooperatives, and city-owned utilities building their own, locally-owned broadband networks in a bid for better, cheaper, faster broadband.
Regional giants like Comcast, Charter, or AT&T could have responded to this organic trend by offering better, cheaper, faster service. But ultimately they found it far cheaper to undermine these efforts via regulatory capture, congressional lobbying, lawsuits, protectionist state laws, and misleading disinformation.
Currently sixteen states have laws — usually ghost written by regional telecom monopolies — restrict or outright ban community broadband. Some of these laws are outright bans on community broadband, basically letting Comcast or AT&T veto your local infrastructure voting rights. Others erect elaborate, cumbersome restrictions on the financing and expansion of such networks and pretend that’s not a ban.
The good news: The Institute For Local Self Reliance (where I study and write about broadband access) notes that these sixteen laws are a notable reduction from the 21 state laws we had in 2020. What caused the change? The pandemic home education and telecommuting boom highlighted the essential nature of broadband (or more accurately, the expensive, sluggish, terrible nature of monopoly options).
As a result, several states voted to roll back the efforts and take a more serious look at community owned and operated broadband networks:
“In 2021, Arkansas and Washington passed legislation significantly rolling back legislative barriers on publicly owned broadband networks. In 2023, Colorado rolled back a law that required communities to hold a referendum vote to opt out of a state ban on municipal broadband. That law was repealed after over 120 communities across the state overwhelmingly voted to opt out of the state preemption law, fueled no doubt by the success of the municipal networks in Estes Park, Fort Collins, and Loveland. In May of 2024, Minnesota followed suit, rolling back its preemptions laws.”
There are numerous funding and deployment models when it comes to community broadband. Some municipalities build open access fiber networks themselves (see: Utah’s UTOPIA), allowing for numerous competitors. Others are built off the back of city-owned electric utilities (see: Chattanooga’s EPB). Some are fiber cooperatives (see the success had in North Dakota). Some are public private partnerships.
Data routinely shows these networks provide faster, better, cheaper service than regional cable and phone giants. Staffed and backed by locals, they tend to be more in tune with the needs of locals. They’re extremely unlikely to engage in predatory pricing, privacy, or net neutrality violations. You’ll usually enjoy local customer service. They incentivize regional monopolies to actually try.
There’s $42.5 billion in infrastructure bill subsidies that should start reaching the states early next year. A lot of this money will land in the laps of the usual regional monopolies. But a lot of it is going to wind up in the hands of local community-owned networks, which is a dramatic policy shift from years past. As a result, companies like Charter, AT&T, and Comcast have ramped up the use of fake consumer groups built specifically to mislead locals.
Community broadband isn’t some magic panacea. Like any other business model, it requires competent planning, intelligent financing, and stellar leadership. But it should be the democratic choice of a community whether to pursue such options. Not the decision of a Comcast executive living half a world away.