Broadband communication is growing in Indiana, and there's a debate in the Legislature about whether local government should be involved.
State Rep. Jack Lutz, R-Anderson, chairman of the House Utility and Energy Committee, authored a bill that would prohibit local government from owning or operating telecommunications, cable or other information services if private industry already provides or intends to offer the service.
While SBC and other telecommunications companies support the legislation, representatives of Indiana Cities and Towns Association oppose it, saying it would virtually stop government from entering the broadband market.
"It is not my intent to rob anybody out of high speed broadband access," Lutz said. "This is a bill that is still under construction."
Matt Greller, IACT's executive director, said municipal officials oppose the bill because it would eliminate competition for broadband service.
"This bill would drag out the time it will take to bring broadband to every home or business," said Greller, pointing to the requirement of public hearings and studies to decide whether other providers could offer service.
Marion Mayor Wayne Seybold recently took action to get wireless broadband in that city to attract and keep business. Greller said government, especially in rural areas, had to step in when private telecommunications companies said the market was not there.
Mike Marker, spokesperson for SBC Indiana, said local governments put residents and local taxpayers at risk when they get into telecommunications.
"The reality of telecom is that it's a capital intensive business where technology changes rapidly," Marker said. "Managing a network goes far beyond simply having the technology."
SBC says most Indiana communities already have access to advanced technology and more than 73 percent of Hoosiers in SBC's territory have access to DSL
Marker pointed to remarks recently made by Gov. Mitch Daniels, who urged caution when government goes into business competing with the private sector.
Mark Apple, vice president of government relations for Comcast, said the cable industry remained neutral on the bill.
"While we fundamentally oppose the notion of government competing with private industry, we don't see a need for this bill," Apple said.
The bill would have no impact on a wireless broadband initiative from the Muncie-Delaware County Chamber of Commerce to extend service to schools and rural areas.
"We have been working with a private partnership," said Christy Steele, the chamber's vice president of technology advancement.
Sen. David Ford, R-Hartford City, who chairs the Senate Economic Development and Technology Committee, said many communities still could not get wireless broadband service without government's help.
"If SBC possibly wants to work with us, I am all ears," said Ford, who opposed putting any limits on government involvement in telecommunication.
Lutz's bill is expected to get a hearing before the House Local Government Committee next month.