Bell Companies Stifle Broadband Growth, Critics Say

LAFAYETTE, La. — Large regional telecommunication companies are attempting to stop small cities and town from creating their own broadband networks, according to the mayor of rural Lafayette, and using the aid of the FCC to do it.

Joey Durel, mayor of the 116,000 person-large town located in southern Louisiana, says that BellSouth, the regional telecommunications company that operates in the south-eastern United States, is attempting to stymie the city’s plans to create a broadband network that would offer data, voice and video to the town’s residents.

“We have the opportunity to do something great for this community – and in a state that needs a big win,” Durel told USA Today Wednesday. “They have to get out of our way.”

The companies, according to critics, are engaging in a tactic where they attempt to leverage threats of decreased broadband deployment against regulators in order to receive concessions and forcing states like Pennsylvania, which recently considered a Verizon-backed bill to bar cities from selling broadband services, to allow them a monopoly on high-speed Internet access.

Currently, U.S. consumers pay relatively high rates for high-speed Internet access, averaging around $35 to $40 a month for speeds of one to two megabits per second. Japanese Internet users pay about $15 a month for speeds of 30 megabits per second or higher.

According to people like Mark Cooper, research chief for the Consumer Federation of America, the Bell companies can maintain high prices for service because of a series of waning promises made to the FCC in exchange for rulings that would allow the companies to deny rivals access to their lines, a former staple of telecommunications regulation.

In exchange for promising to run fiber lines straight to homes, for example, the FCC ruled that the companies should not be forced to open their lines to competing companies.

Currently, BellSouth intends to run fiber to neighborhoods and use copper wires to connect to homes. SBC has asked to be allowed to take fiber to nodes, the copper wires that run from switching offices to homes and businesses, lengthening the distance from fiber connections to homes even farther.

“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

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Two Texas Bills Restricting Sex Toy Sales Fail to Pass

Two bills aimed at restricting sales of sex toys have failed to pass the Texas state legislature during its 2025 session.

NYC Adult Stores Petition for Rehearing in Zoning Law Case

A group of adult businesses on Tuesday petitioned the U.S. Court of Appeals for the 2nd Circuit to rehear a case involving a zoning law that could severely limit adult stores’ operations in New York City.

Ofcom Releases Transparency Reporting Guidelines

Ofcom, the U.K. media regulator, has made public its official guidance detailing how online service providers — including adult sites — will be required to publish annual transparency reports on their efforts to protect children from online harms.

New AV Rules Take Effect for Ireland-Based Sites

Ireland’s Online Safety Code came into force Monday, including a provision requiring adult sites headquartered in Ireland to implement age assurance measures beyond self-declaration.

XBIZ Amsterdam Calls on New Startups for 'Spotlight' Program

XBIZ is pleased to announce that its new “Startup Spotlight” programming will make its European premiere at XBIZ Amsterdam 2025, set to take place Sept. 2-5 at the Jakarta Hotel Amsterdam.

Texas Resumes AV Lawsuit Against Aylo Following SCOTUS Decision

A district court judge in Texas has unfrozen the state’s $1.6 million lawsuit against Aylo for allegedly failing to comply with age verification requirements, Bloomberg Law is reporting.

Show More