When a state is trying to recover from one of the worst natural disasters ever experienced, it makes sense to streamline regulations so as to encourage rapid expansion and investment in new infrastructure.
And that is exactly what the Louisiana Legislature did when it passed HB 699. The legislation exempted “home rule” cities, including New Orleans.
So what was Governor Kathleen Blanco thinking recently when she vetoed the bill?
From her veto message it appears she feared a loss of local revenue to municipalities. Or maybe she thought she would be interfering with existing local contracts.
She doesn’t seem to know for sure, and neither do we.
But what we do know is that similar legislation in other states has produced new and expanded services for consumers.
Want proof? Texas and Kansas have already seen the results of municipal franchise reform. Following the passage one year ago of SB 5 in Texas, both Verizon and AT&T announced a significant roll out of new television service, and will be spending literally billions of dollars in the next few years on television and broadband services.
Kansas recently announced similar results from its legislative reforms.
Indiana and Virginia have also passed municipal broadband reform, and Congress has bills pending on the subject.
It is obvious from this spate of legislative activity that many state legislators have figured out that the best place to determine the future of telecom investment and deployment is the marketplace.
Governor Blanco, on the other hand, has not learned those lessons and refuses to be guided by state legislators. And that’s a shame.
Hurricane Katrina was a tragedy for Louisiana. But undermining important legislation that would lead to massive new investment, including much-needed jobs for the state, simply compounds the tragedy.
Louisiana is recovering from Hurricane Katrina; now it’s facing Hurricane Blanco.