The N.C. Senate on Monday night overwhelmingly approved a bill that would temporarily halt new financing for city- or town-owned communications networks. The bill also would continue a Senate committee’s study of municipally-owned networks. It now goes to the House for consideration.

The bill (S1209) is supported by the state’s major telecommunications and cable TV companies, who are seeking to keep more cities and towns from entering the cable and internet business. That’s what Davidson and Mooresville did three years ago when they bought the former Adelphia Cable system.

The local system, now called MI-Connection, has only recently begun growing again after disruptions during a major upgrade and intense competition lured customers away. The system has yet to turn a profit, and the two towns are expected to provide a subsidy of about $6.4 million in 2010-11.

The bill’s lead sponsor, Sen. David Hoyle (D-Gaston County), has cited the need for subsidies in his efforts to win approval for legislation to block other cities and towns from the business.

Monday’s vote was 41-7 in favor of the bill. Its full title is “An act to direct the revenue laws study committee to continue its review of local government owned and operated communication systems and to temporarily limit the financing for these systems.”

Opponents of the bill argue that cities and towns – particularly those in rural areas – need the right to develop broadband communications systems in cases where private companies either offer poor service or no service at all.

RELATED LINKS

June 6, 2010, NewsObserver.com “Under the Dome” blog, “Senate approves plan to delay, study high-speed internet by governments.”

June 3, 2010, DavidsonNews.net “Senate bill to limit towns’ networks efforts advances”