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 © 2025 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

Sansyl Group Acquires Blue Donkey Media

Sansyl Group, parent company of AdultPrime Network, has acquired Blue Donkey Media B.V., owner of Dutch adult site Meiden van Holland, among several other erotic websites and television channels.

Pineapple Support to Hold Mental Health Summit

The annual Pineapple Support Mental Health Summit is taking place Dec. 15-17.

Ofcom Fines AVS Group $1.3 Million for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed a penalty of one million pounds, or approximately $1.3 million, on AVS Group Ltd. after an investigation concluded that the company had failed to implement robust age checks on 18 adult websites.

Updated: Aylo to Help Test EU Age Verification App

Pornhub parent company Aylo plans to participate in the European Commission’s pilot program for its “white label” age verification app, a spokesperson for the company has confirmed.

Missouri Lawmaker Attempts to Revive 'Health Warnings' for Adult Sites

A Missouri state representative has introduced a bill that would require adult sites to post notices warning users of alleged physical, mental, and social harms associated with pornography, despite a previous federal court ruling against such requirements.

New Age Verification Service 'BorderAge' Launches

French startup company Needemand has officially launched its subscription-based age verification solution, BorderAge.

Ruling: Italy's 'Porn Tax' Applies to All Content Creators

Italy’s tax revenue agency has ruled that the nation’s 25% “ethical tax” on income generated from adult content applies even to smaller independent online content creators.

Proposed New Hampshire AV Bill Appears to Violate Constitution

A bill in the New Hampshire state legislature, aimed at requiring adult sites to age-verify users in that state, contains a provision that seemingly contradicts the Supremacy Clause in Article VI of the U.S. Constitution.

AEBN Publishes Report on Fetish Trends

AEBN has published a report on fetish categories from its straight and gay theaters.

Online Child Protection Hearing to Include Federal AV Bill

A House subcommittee will hold a hearing next week on a slate of bills aimed at protecting minors online, including the SCREEN Act, which would make site-based age verification of users seeking to access adult content federal law.

Show More