South Carolina State With Explicit Roadblocks The state laws impose restrictions

  • South Carolina State With Explicit Roadblocks The state laws impose restrictions

    Posted by Michael on August 11, 2021 at 7:11 am

    The state laws impose restrictions and procedural requirements on municipal broadband projects that are considered unduly burdensome

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    A canary in the coal mine: In 2010, the Oconee county government received a $9.6 million federal grant, matched by $4.7 million in county funds to build fiber network infrastructure in the northwest corner of the state. County officials had hoped to offer broadband service to residents as a public utility. However, a heavy lobbying push from AT&T resulted in the passage of state bill H3508, which limits local governments’ ability to offer retail broadband services to residents.

    South Carolina

    S.C. Code Ann. § 58-9-2600 et seq.

    South Carolina’s laws are similar to North Carolina’s on the issue of municipal broadband. The state laws impose restrictions and procedural requirements on municipal broadband projects that are considered unduly burdensome. Those include proposal-stage barriers, phantom cost requirements, and additional tax burdens. The language of the law is so vaguely worded, experts say, that they would open up any such project to a range of disagreements and challenges by incumbent telecom providers.

    A canary in the coal mine: In 2010, the Oconee county government received a $9.6 million federal grant, matched by $4.7 million in county funds to build fiber network infrastructure in the northwest corner of the state. County officials had hoped to offer broadband service to residents as a public utility. However, a heavy lobbying push from AT&T resulted in the passage of state bill H3508, which limits local governments’ ability to offer retail broadband services to residents. Instead, public entities may operate broadband networks solely as a wholesale supplier. That means the government can only lease its infrastructure to private companies that can then offer broadband service to residents.

    As a result, Oconee County officials were forced to re-think their business model mid-way through its construction. As a wholesale model, the project was unable to generate the needed revenue, and the county entered into a lease-to-own agreement with OneTone to take over the network over a period of 20 years for a paltry $6.3 million. In early 2020, bill H 4993 was introduced and placed into committee before ultimately stalling. It would “authorize and regulate local government-owned broadband internet access service providers”.

    Michael replied 1 year, 1 month ago 1 Member · 0 Replies
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