FCC Preempts State Laws Limiting City-Provided Internet Service
In a 3-2 vote, the FCC overrode state laws in Tennessee and North Carolina that make it difficult for cities to provide internet service independently. The move is likely to provoke litigation over limits on Federal Power. In 2004, the Supreme Court ruled in Nixon v. Missouri Municipal League that Section 253 of the Telecommunications Act did not allow for state preemption in a case concerning the blocking of municipal broadband service. The FCC Chairman said the current action is allowable under Section 706 which mandates the blocking of growth barriers in the broadband market.
Aereo Files Repayment Plan Following Bankruptcy Auction
Last week, eight months after the Supreme Court declared Aereo Inc.’s television streaming business illegal, the company auctioned off intellectual property, technology and other assets for a total of $1.55 million, a much smaller sum than expected. It’s trademarks, domain names and customer list sold to TiVo for $1 million. On Friday February 27, the company laid out its plan to repay creditors. The auction sale is set to be approved in a March 11 hearing, and Aereo hopes to have the repayment plan confirmed by creditors in May.