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[IP] more on Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide





Begin forwarded message:

From: Declan McCullagh <declan@xxxxxxxx>
Date: December 1, 2004 5:05:59 PM EST
To: dave@xxxxxxxxxx
Cc: dmaltz@xxxxxxxxxx
Subject: Re: [IP] Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide

Dave,

There's a minor urban myth afoot about this legislation that IP readers might want to have dispelled.

David Maltz's note (and others that have appeared on IP) claim that in the absence of this last-minute deal with Verizon, the Pennsylvania law would have prohibited Philly from offering a free wireless network.

I don't believe this claim is true. The law applies only to municipalities providing Internet service in return "for compensation" -- that is, a fee that subscribers would pay. This is Verizon's reading as well, they told me today.

Check out the text of the legislation for yourself:
http://www.legis.state.pa.us/WU01/LI/BI/BT/2003/0/HB0030P4778.HTM

There may be plenty of problematic things buried in a complex law that's dozens of pages long. But it is FUD to claim that Philly would have been prohibited from offering free wireless service. (My uninformed speculation is that the city was so upset because they wanted to charge for it and had no intention of offering it for free in the first place.)

-Declan



David Farber wrote:

From: "David A. Maltz" <dmaltz@xxxxxxxxxx>
Date: December 1, 2004 3:40:31 PM EST
To: 100x100-cmu-reading-group@xxxxxxxxxx
Subject: Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide Verizon Communications yesterday reached an agreement with the city of Philadelphia that will let the city move forward with its plans for a citywide wide area WiFi network. While specific details about the deal have not been released, Verizon agreed to waive its rights under the new legislation to bar Philadelphia from providing WiFi service for free or at a low-cost. As for the bill in question, Pennsylvania Governor Ed Rendell yesterday signed it into law. This hotly contested new law will make it illegal for municipalities to offer their constituents wireless or landline broadband service without first getting the permission of broadband service providers. Without that permission, carriers can block any effort to build a municipal network in the commonwealth. Thanks to its agreement with Verizon, Philadelphia will be exempt from this stipulation. Most insiders claim the law will effectively end the municipal WiFi effort in the rest of Pennsylvania, making it almost impossible for other cities to negotiate a reasonable rate for offering free or low-cost broadband wireless. <http://www.zwire.com/site/news.cfm? newsid=13465974&BRD=2212&PAG=461&dept_id=465812&rfi=6>

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