Local governments wanting to provide public broadband services to residents would first have to invite private companies to do the work and, if they still decide to move ahead, put the idea to voters for approval.
The measure's sponsor, Senate Majority Leader Chip Rogers, R-Woodstock, said Senate Bill 313 fits into his desire for limited government by forcing local entities to "play by the same rules" as private broadband providers. He pointed to examples where local efforts to provide services proved disastrous. In 2004, for example, the Marietta City Council voted to sell its 8-year-old Internet company, FiberNet, to a private company at a loss of more than $23 million on its investment.
The bill, which Rogers dubbed the "Broadband Investment Equity Act," would prohibit public providers from paying for their networks with revenue from taxes or other government services. It would also block them from charging less than the actual cost of broadband service, which Rogers said could undermine competing private companies.
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