MN Equal Access to Broadband bill means new fees for broadband providers

The Minneapolis Star Tribune reports on the MN Equal Access to Broadband bill (I have been following the bill in the Legislature)…

Minnesota cities are asking the Legislature for power to slap internet providers with new fees, an idea they say will lead to more broadband in the state with the added bonus of helping to pay for basic government access programming like video of council meetings.

But the idea has caused a stir at the Capitol, where telecom groups and Republicans argue the bill — with its significant support from the Twin Cities metro area — won’t actually aid rural Minnesota in bridging the digital divide at all. Instead, it would just bring in more cash to local government at the expense of broadband customers.

The tug-of-war has become contentious at times, pitting cities and their media operations against internet providers large and small and sparking debate about whether the bill’s title promising equal access to broadband is false advertising.

Gov. Tim Walz’s broadband office declined to weigh in as officials there plan to distribute more than $750 million in state and federal money to subsidize the construction of broadband infrastructure aimed at expanding high-speed internet options.

“The added fee on consumers’ bills will tip the affordability scale in the wrong direction,” said Brent Christensen, president of the Minnesota Telecom Alliance. “This legislation is contrary to everything the state of Minnesota, the Office of Broadband Development and my members are doing to see that all Minnesotans have access to quality broadband.”

Bills for broadband

Local governments have long negotiated franchise agreements with cable TV providers and utility companies to use public right-of-ways for infrastructure like wires.

Those deals usually include franchise fees, and for cable providers, a second fee specifically dedicated to what is known as Public Education and Government, or PEG. That’s basic public access media documenting local life and government.

There are federal limits…

Federal law limits cable franchise fees to 5% of annual gross revenue in that city, though the PEG fees are additional and uncapped. The latest version of the DFL legislation restricts broadband franchise fees to 5% of gross revenue and PEG fees to 3%.

Supporters have titled the bill as the “Equal Access to Broadband Act,” saying cities can negotiate consumer protections through franchise deals. Broadband groups have argued it’s a misnomer, that the policy will slow the spread of quality internet.

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About Ann Treacy

Librarian who follows rural broadband in MN and good uses of new technology (blandinonbroadband.org), hosts a radio show on MN music (mostlyminnesota.com), supports people experiencing homelessness in Minnesota (elimstrongtowershelters.org) and helps with social justice issues through Women’s March MN.

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