Telecoms Sue Over Publicly Owned Fiber Optic Cables

Cities that are constructing publicly owned fiber optic cables to bring high-speed Internet, telephone and cable television to communities from metro areas are being sued by telecom companies.

Although it is better for the telecom companies to delay the cities’ processes, city attorneys are responding to the law suits by saying that they are a veiled attempt to stop construction of competing public systems providing an essential utility in the digital age.

Attorneys for telecommunications companies say the litigation is needed because municipalities, with the ability to borrow money cheaply — and not hobbled by the need to return a profit — have unfair competitive advantages.

An Example in Utah

An association of Utah cities formed to promote the construction of a broadband network in smaller cities and rural areas, in which they were providing facilities and personnel at no cost, interest-free loans and, in some instances, outright cash infusions.

The cities state that if private telecoms had been more responsive to the needs of the population, they would not have had to start the project and that litigations are an attempt to recreate the old monopolistic system.

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