Tuesday, October 28, 2008

Local Goverments in Court over Telecom Law

Louisiana's parishes and small cities are in court this week defending local property rights against what was once known as "BellSouth's Law" according to a short in Advocate. The law, passed by the state legislature, contained something for every corporation: BellSouth, now AT&T, got to ignore local property rights and get permission to build out a cable network without negotiating with the local governments that actually own and maintain the rights-of-way they want to use and the cable companies got the right to simply cancel contracts with local governments. (More coverage at LPF: on the most recent version of the law (especially); some on the first attempt in 06 which was wisely vetoed by Governor Blanco: 1, 2)

The current lawsuit (there promise to be more, Lafayette, for instance, has a separate beef) is about that latter clause–the one that lets cable companies cancel legal contracts without the permission of the local community. The state constitution expressly forbids new laws that abrogate existing contracts. The local governments are using that entrée to try and invalidate the whole law.

It'd be a good thing if they'd succeed. Moving control away from local hands and up the governmental ladder is generally a bad idea. The argument that AT&T and the cable companies use that claims that such a law would enable competition is simply wrong: competition was always possible, exclusive contracts are illegal under FEDERAL law, and NO local government would dare stand in the way of any competitor to the poltically despised cable company. From a purely practical point of view more competition usually means more business and more business means more income for local governments... So the idea that local governments would somehow want to impede competition is purest nonsense and was always meant for the rubes in the legislature. I suspect laying that claim before a judge is a mistake.

Here's to hoping that the judge shows good judgment. I'm not particularly counting on it.

No comments: