N.C. Judge Rules Against Telecoms in Fiber Dispute

LAURINBURG, N.C. — An appellate court ruled recently that a North Carolina town should be allowed to use municipal resources to provide high-speed Internet access to local users, landing the first blow against telecommunications companies that have been trying to maintain a hold on broadband access.

Siding with the city of Laurinburg against Bellsouth Telecommunications Inc., North Carolina Appellate Judge B. Craig Ellis found that cities within the state were acting legally when they created a 19-mile loop of fiber optic cable and provided Internet access to local schools, universities and hospitals.

Ellis ruled that the fiber network, originally created to only allow broadband access between Laurinburg’s city hall and its public works building, acted appropriately when it decided to sell access to non-governmental groups in order to make the network cost-effective.

Bellsouth had argued that a 1971 state law that stated that municipal governments could only sell certain types of services, including a cable television system, prohibited the city from operating as a business.

“Just as Bellsouth is able to leverage its telephone infrastructure to provide low cost DSL broadband services in the market, so too should a municipality be able to leverage its infrastructure,” wrote the court.

“We acknowledge that Laurinburg’s fiber optics network was most likely not something the legislature envisioned in 1971 when they enacted the statute allowing a municipality to operate […] as a public enterprise,” wrote the court. “However, if Laurinburg were currently offering the kind of cable programming in place in 1971, and doing so over their fiber optic network, they clearly would be authorized to offer the current bundle of network services over those same lines as ‘additional and supplementary powers that are reasonably necessary or expedient.”

The decision brings one of the first defeats for telecom companies that have been accused by critics of attempting to leverage threats of decreased broadband deployment against regulators in order to force states to allow them to have a monopoly on high-speed Internet access.

In exchange for promising to run fiber lines straight to homes, for example, the FCC ruled that telecoms should not be forced to open their lines to competing companies. However, the companies have been pushing the limits of what “to homes” means since then, first asking to run fiber only to neighborhoods and then using copper wires to connect to homes, and then asking to run fiber only to the nearest node.

“By splicing in a little fiber, the Bells can squelch competition,” Earthlink vice president Dave Baker told USA Today. “There can be and should be competition in broadband services on new networks.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

European Commission: Age Verification App Ready For Use

The European Commission’s age verification app is now technically ready and will soon be available for EU citizens to use in order to prove their age when accessing online platforms, European Commission President Ursula von der Leyen announced Tuesday.

UK House of Commons Moves to Tone Down Porn Amendments

The House of Commons has modified amendments to the U.K.’s pending Crime and Policing Bill, including provisions regulating “step” content, content featuring adults role-playing as minors, and performers’ ability to withdraw consent.

AEBN Reveals Ariel Demure as Top Trans Star for Q1 of 2026

AEBN has named its top trans stars for the first quarter of 2026, with Ariel Demure landing atop the leaderboard.

Final IRS 'No Tax on Tips' Rule Excludes Pornography

The Internal Revenue Service on Monday published final regulations on the “No Tax on Tips” provision included in the “One Big Beautiful Bill Act,” offering new tax deductions for tip workers but excluding revenue received for “pornographic activity.”

Pennsylvania Legislature Weighs 'Porn Tax' Bill

The Pennsylvania State Senate is considering a bill that would impose a 10% tax on the revenue of adult websites doing business in that state.

Trump Tariffs Refund Process to Launch April 20

U.S. Customs and Border Protection (CBP) will begin the process of refunding duties paid under the Trump administration’s sweeping program of tariffs by providing, starting April 20, an online tool for submitting refund claims.

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Adds Real-Time Speech Translation

Dreamcam has introduced Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a planned ban on “step” content to apply only if adult performers role-play as minors.

Show More