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May 17, 2010

Broadband proposal could impact ME

By The Mainebiz News Staff

A federal proposal that calls for more regulatory oversight of Internet service providers could help the state's efforts to expand broadband, but providers say the move would hurt competition in the industry.

Federal Communications Commission Chairman Julius Genachowski has proposed that any company that provides Internet service fall under the same regulatory rules governing telephone companies, a measure that has garnered opposition from landline, cable and wireless providers, according to Capitol News Service. Sen. Olympia Snowe said the proposal includes expanding the Universal Service Fund to provide federal aid for broadband expansion efforts in rural areas, much like the fund has been used for rural phone service. Public Advocate Richard Davies said the measure would give Maine more control over access to broadband by bringing service providers under the regulatory authority of the Maine Public Utilities Commission. "We have long been frustrated that we have very little we can do in the area of broadband unless the regulated utilities come into the commission for something else," he told the news service.

Internet providers and trade groups, however, have spoken out against the proposal, saying it would reduce competition and arguing there's insufficient evidence that additional oversight is necessary.

Go to the article from Capitol News Service >>

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