S.C. is latest state to erect high obstacles for broadband ownership by local governments

South Carolina is the latest state to pass a bill that makes it difficult if not practically impossible for local governments to create their own publicly owned Internet providers. The move could set back the expansion of broadband into some corners of the state, likely more rural areas that large Internet providers say are hard to reach and aren't profitable because of lack of customers.

Municipal broadband watchdog Phillip Dampier said the passage of the bill is a display of the lobbying power of AT&T, South Carolina's largest private Internet provider, Cyrus Farivar of Ars Technica reports. Dampier and others also allege the bill was written by the American Legislative Exchange Council, a conservative advocacy group that holds conferences for legislators and lobbyists. Farivar reports that AT&T is a member of ALEC and contributed $1,000 to South Carolina legislator Michael Gambrell, lead author of the bill. ( Read more)

Orangeburg and Oconee counties had already received federal funding to expand broadband, with Orangeburg County getting $2.4 million, Gene Zaleski of The Times and Democrat in Orangeburg reported. Seventy-five percent of the project was to be funded by U.S. Department of Agriculture Rural Utilities Service money. It's unclear now whether the county will still receive that funding.