	Background

Broadband—also referred to as high-speed Internet service—has been deployed in the United States since the late 1990s, primarily by private sector providers. While broadband deployment has been rapid and robust overall, there are parts of the nation where broadband is less deployed (primarily rural areas) and there remain regions and communities that are dissatisfied with the level of broadband service currently offered by private sector providers. As a solution, some communities have turned to public entities as possible broadband providers. These communities anticipate that public entities may be able to provide municipal broadband at superior levels of speed, performance, and affordability than what is currently offered by private providers. Public entities that provide broadband service can be local governments or public utilities, for example, and may construct and manage broadband networks either solely or in partnership with private companies. There are a number of municipal broadband models that have been implemented across the nation. Since each community is different and each faces unique challenges, there is no one size that fits all. Many local communities cite low speeds, high prices, a lack of competition, or even an absence of any broadband service in particularly sparsely populated areas, and argue that they should be able to provide this service to meet their citizens' needs and to support the community's economic development. Municipal broadband can address unmet public interest needs. Because of the market-distorting effects of municipal broadband, continued private sector investment in broadband networks might be discouraged in some cases. After consideration of record the FCC, in a February 26, 2015, action, granted the petitions to preempt state laws in North Carolina and Tennessee that restricted the expansion of community broadband services. Whether the FCC does, or does not, have the legal authority under Section 706 to preempt state laws that restrict municipal broadband deployment remains controversial. Both the state of Tennessee and the state of North Carolina filed lawsuits (petitions for review) challenging the FCC's authority to preempt these restrictions. The U.S. Court of Appeals, in an August 10, 2016, decision reversed the FCC's Order. Congressional Activity—114th Congress

Four bills ( S. 240 , S. 597 , H.R. 1106 , and H.R. 6013 ) were introduced, and one draft measure (H.R.__) was released, in the 114 th Congress that addressed the municipal broadband debate. None of these measures were enacted. With respect to municipal broadband, the issue for Congress is whether locally owned and/or supported networks should be encouraged or restricted. The debate is complicated by the diversity of municipal broadband projects. Ultimately, as discussed above, on March 12, 2015, the FCC released an order lifting restrictions on municipal broadband networks in Wilson, NC, and Chattanooga, TN. Municipal broadband opponents argue that public entities are ill-equipped to efficiently develop, operate, and maintain commercial broadband networks, and that municipally owned and supported broadband networks constitute unfair competition to private sector providers, and may ultimately impede private investment in broadband infrastructure. Ultimately, whether municipal broadband should be encouraged or restricted is one of many policies that Congress continues to consider for promoting broadband deployment.
Since the late 1990s, broadband Internet service has been deployed in the United States, primarily by private sector providers. While broadband deployment has been rapid and robust overall, there remain communities that are dissatisfied with their broadband service. Some of these communities have turned to public entities as possible broadband providers, with the expectation that municipal broadband networks (also referred to as "community broadband") can deliver superior levels of speed, performance, and/or affordability than what is currently offered by private providers. Public entities that provide broadband service can be local governments or public utilities, for example, and may construct and manage broadband networks either solely or in partnership with private companies. There are a number of municipal broadband models that have been implemented across the nation. Since each community is different and each faces unique challenges, there is no one size that fits all.
Municipal broadband is controversial, because it involves governmental entities entering a commercial telecommunications marketplace that had previously been the exclusive domain of private sector providers. Supporters of municipal broadband argue that in view of substandard broadband service, communities and local governments should be able to provide this service to meet their citizens' needs and to support the community's economic development. Municipal broadband opponents argue that public entities are ill-equipped to efficiently develop, operate, and maintain commercial broadband networks, and that municipally owned and supported broadband networks constitute unfair competition to private sector providers, which may ultimately impede private investment in broadband infrastructure.
With under 500 municipalities across the nation embarking on some form of municipal broadband, 20 states have passed laws placing restrictions (or in some cases, bans) on local broadband networks. The issue for Congress is whether municipal broadband should be promoted or discouraged, and more specifically, whether those state restrictions on municipal broadband should be overridden or affirmed.
On March 12, 2015, the Federal Communications Commission (FCC) released a Memorandum Opinion and Order granting the petitions filed by two municipal broadband providers in Wilson, NC, and Chattanooga, TN, to preempt state laws in their respective states that restricted the expansion of community broadband services. The Order and the decision by the FCC to rely on Section 706 of the 1996 Telecommunications Act for its authority remain controversial. Both states filed petitions for review consolidated in the U.S. Court of Appeals, 6th Circuit, Cincinnati, challenging the FCC's authority to preempt these restrictions. The court, in an August 10, 2016, decision, reversed the FCC's Order.
Four bills (S. 240, S. 597, H.R. 1106, and H.R. 6013) were introduced and one draft measure was released in the 114th Congress addressing the municipal broadband debate, but none of these measures were enacted. The role of municipal broadband and the appropriate role of the states and the FCC to address the relationship between the public and private sector is just one facet in the overall debate regarding broadband deployment. Whether municipal broadband should be encouraged or restricted is one of the many policies that Congress continues to consider.