FTC COMMISSIONER BACKS MUNI RIGHTS

All over the blogs (and here) and sent to me from the TR Daily: FTC COMMISSIONER BACKS MUNI RIGHTS TO OFFER BROADBAND SERVICES "It is not only wrong; it is unacceptable" for commercial broadband interests to ask state and federal lawmakers to stymie municipal efforts to deploy broadband communications networks, a member of the Federal Trade Commission said today. Speaking to local government officials and others attending the National Association of Telecommunications Officers and Advisors conference in Washington, FTC Commissioner Jon Leibowitz said such legislative lobbying by cable and telecom companies is equivalent to "Barnes and Noble and Borders saying libraries are killing their business and asking law makers to stop localities from building more libraries." Commission Leibowitz said the FTC has authority to conduct industry studies and an advocacy role in commenting on proposed state rules and legislation that could affect competition and consumers. He pointed out that the FTC has weighed in in the past when industries have sought legislation to protect them from competition; he cited efforts to restrict nonlawyers from handling real estate closings, efforts to restrict low-cost offerings from discount real estate broker, and laws to prohibits the sale of gasoline below cost. In response to the argument frequently posed by commercial broadband proponents that municipal broadband networks represent unfair competition to private companies, Mr. Leibowitz said, "If cities do have these so-called advantages [such as freedom from taxation and various local regulations], and they want to pass them on to citizens, why shouldn't they be allowed to do so? That's exactly what a city does when it operates public schools, hires a police force, or builds libraries." Turning cable and phone company antiregulatory arguments against them, Commissioner Leibowitz said, "We should stick with their general position: It's better to compete than to regulate." - Lynn Stanton, lstanton@tr.com