Neb. Telcos Oppose Easing Utility Dark Fiber Limits

Nebraska should lift state restrictions keeping public power utilities from leasing their dark fiber to ISPs in rural areas, said Sen. Tom Brandt (R) at a livestreamed hearing Tuesday. However, telecom industry groups raised concerns at the unicameral legislature’s Transportation and Telecommunications Committee’s hearing on Brandt’s LB-61. Utilities don’t want to get in the commercial internet business, said Brandt, noting other states have eased similar limits. Nebraska's "dark fiber statutes are antiquated and need to be repealed,” said Brian Adams, Omaha Public Power District chief of staff. The existing law discourages utilities from partnering with others to provide high-speed internet, he said. Other supporters included Allo Communications, Nebraska Farm Bureau, Nebraska Farmers Union, League of Nebraska Municipalities and Nebraska Association of County Officials. Utilities won’t use energy rates to pay for broadband, he stressed. Raising concerns the bill might incentivize overbuilding, Sen. Wendy DeBoer (D) asked if the state’s current limits should remain for served areas. Nebraska Telecommunications Association President Tip O’Neill opposed LB-61, saying it would remove key protections for transparency and fair competition. State law needn’t be changed, he said. Answering a question from DeBoer, O’Neill said limiting the bill to unserved areas might be preferable, but he would have to talk with association members including Lumen and Great Plains Communications. The bill would “undercut competition” by subsidizing broadband overbuilders, preventing ISP challenges and eliminating oversight, said Charter Communications Senior Manager-Government Affairs Dayton Murty. Sen. Bruce Bostelman (R) disagreed with overbuilding concerns. ISPs failed to serve rural Nebraska, he said. “We need to look at any way that can help.”