Some Minnesota cities want to impose fees on internet providers; customers could pay the price

Supporters have titled the bill as the "Equal Access to Broadband Act," saying cities can negotiate consumer protections through franchise deals. Broadband groups have argued it's a misnomer, that the policy will slow the spread of quality internet.

Christensen said a broadband provider could just avoid entering a city rather than face a franchise fee or regulations, especially in rural areas where the business case is already shaky because of sparse housing or difficult terrain that drives up the cost of laying fiber-optic cables.

Local regulations could hypothetically clash with the requirements for the unprecedented $652 million tsunami of grant funding headed to Minnesota from the federal infrastructure bill that subsidizes fiber in those harder-to-serve areas, he said. Minnesota lawmakers approved an additional $100 million last year, too.

The Telecom Alliance represents a range of smaller communications companies and cooperatives in the state and some larger ones such as Lumen.

Another objection from the broadband industry is the fees would pass down to customers on their bills, cooling interest in buying internet.

"This is putting franchise fees on customers' bills at a time when we're trying to make broadband affordable," Christensen said.

Opponents of the bill included several national trade groups representing broadband providers and heavy hitters like the Minnesota Chamber of Commerce and the Minnesota Cable Communications Association. The latter represents Comcast and has led an advertising campaign against the legislation.

Republicans have painted the policy as a way for cities to raise cash rather than spread broadband access.

"This is about bloating government budgets," said Rep. Isaac Schultz, R-Elmdale Township, during a March hearing.

Public support for the bill has been concentrated, though not exclusively, in the Twin Cities metro area where basic internet options are easier to come by than in large parts of Greater Minnesota.

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