Virginia State With Explicit Roadblocks Price Fixing for sure

  • Virginia State With Explicit Roadblocks Price Fixing for sure

    Posted by Michael on August 11, 2021 at 7:32 am

    In 2019, Gov. Ralph Northam (D) signed into law legislation that enables local governments to contract ISPs to construct broadband networks to help facilitate broadband service reaching the state’s unserved areas.

    But local governments are only allowed to do so if less than 10% of residents in the area have access to broadband at the time of the project.

    Price Fixing for sure

    Municipalities must also include phantom costs in their rates

    Virginia

    VA Code § 56-265.4:4; VA Code § 56-484.7:1; VA Code § 15.2-2108.6; § 15.2-2403

    Virginia state laws allow municipalities to build their own broadband networks and offer retail services to residents, but they must meet a bevy of requirements first. Municipalities may not subsidize services nor are they able to charge rates that are lower than incumbents’ rates for similar service. Municipalities must also include phantom costs in their rates, and comply with procedural, financing and reporting requirements that private companies do not face. The law also limits the type of services municipalities can offer. For example, in order to offer a triple-play service of voice, video and data, municipalities must first conduct a feasibility report that indicates the service would be able to generate annual revenues that would exceed the annual costs of the service within the first year of operation. That’s a tall order for any telecom service, public or private.

    Some networks are grandfathered past this requirement, as in the city of Bristol, where municipal cable service is available. Other groups, such as the Roanoke Valley Broadband Authority, the city government of Portsmouth, Virginia, the Mecklenburg Electric Cooperative, the Eastern Shore of Virginia Broadband Authority, and the Central Virginia Electric Cooperative are proceeding with public broadband infrastructure projects in spite of the legal hurdles.

    In 2019, Gov. Ralph Northam (D) signed into law legislation that enables local governments to contract ISPs to construct broadband networks to help facilitate broadband service reaching the state’s unserved areas. But local governments are only allowed to do so if less than 10% of residents in the area have access to broadband at the time of the project.

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