Frontier Communications and cable companies like Suddenlink are opposing the West Virginia Legislature’s latest attempt to improve high-speed internet across the state.
At a public hearing Friday, lobbyists for Frontier and the cable industry skewered parts of a bill (HB3093) that would authorize a pilot project in which three cities or counties would band together to build a broadband network and offer internet service to customers.
The industry lobbyists said legislation should target areas without high-speed internet — not places that already have service.
“When you spend taxpayer dollars and resources to focus on areas that already have broadband just so you can have a third or fourth choice, you are denying and depriving service to those who have none,” said Kathy Cosco, a Frontier executive and lobbyist.
Frontier and cable internet providers also oppose a section of the bill that would allow 20 or more families or businesses to form nonprofit co-ops that would provide internet service in rural areas.
Mark Polen, who represents the cable industry, said the bill should be changed to “make it clear these pilot projects and co-ops can’t be deployed where there’s already service.”
“That would be critical to the protection of our investment,” Polen said. “Anything that’s going to result in public subsidies being given to those that are going to overbuild private investment is not the proper policy. Let’s focus on the unserved areas and not allow this program to turn into an overbuilding initiative.”
Smaller internet providers like Bridgeport-based Citynet support the legislation. Citynet CEO Jim Martin told lawmakers that Frontier and the cable industry want to shut out competitors and protect their stranglehold on broadband service across the state.
“There is a reason they’re opposed to it, and that’s because this bill is going to enable competition,” Martin said.
Frontier, which is the largest internet provider in the state, also opposes a section of the bill that bars companies from advertising maximum or “up to” speeds. That measure aims to block firms from advertising internet speeds that they seldom — or never — deliver to customers.
Cosco said the measure unfairly stops companies from touting improved service. Frontier stopped advertising an “up to” speed in 2014, she said.
“If providers aren’t allowed to promote the service that’s available, it would be detrimental to the state’s economic development,” Cosco said.
Martin said his company would have no problem whatsoever with the ban on deceptive advertising. Internet providers would still be able to advertise minimum download and upload speeds available to customers.
“If you have a network and you’re comfortable with it, you should be able to advertise your minimum speed, and then stick with it,” Martin said. “It’s fantastic we aren’t going to allow for false advertising and representations of an ‘up to’ speed.”
Speakers at the public hearing also praised the bill for establishing procedures that would give internet providers quicker access to telephone poles used to hang fiber cable. Smaller firms said they sometimes have to wait months or years to use the poles.
But Cosco said the proposed changes conflict with Federal Communication Commission rules. And a leader of a union that represents Frontier technicians said the proposed pole procedures pose a safety risk.
“It would allow unqualified personnel from third-party contractors to transfer equipment on a utility pole to make room for a new provider’s equipment,” said Elaine Harris, who represents the Communications Workers of America in West Virginia.
After the public hearing, the House Judiciary Committee voted to advance the broadband bill. It next moves to the House floor.
Reach Eric Eyre at email@example.com, 304-348-4869 or follow @ericeyre on Twitter.