Local Governments

The final version of Act 183 allowed existing municipal systems to continue to operate and provide local governments and authorities a one-year window to develop these networks. Municipalities that are providing telecommunication services through a municipally-owned or created network as of January 1, 2006 can continue to offer and provide the services "to the extent and scope" that these services were provided before that date. Municipalities must now offer the incumbent telephone company the right of first refusal to provide the proposed service. Then, the municipality can proceed with its proposed network only if the incumbent local exchange carrier (ILEC) waives its right of first refusal under this act.

For ease of reference, the particular provision in Act 183 reads as follows:

(H) Prohibition against political subdivision advanced and broadband services deployment.

  1. Except as otherwise provided for under paragraph (2), a political subdivision or any entity established by a political subdivision may not provide to the public for compensation any telecommunications services, including advanced and broadband services, within the service territory of a local exchange telecommunications company operating under a network modernization plan.
  2. A political subdivision may offer advanced or broadband services if the political subdivision has submitted a written request for the deployment of such service to the local exchange telecommunications company serving the area and, within two months of receipt of the request, the local exchange telecommunications company or one of its affiliates has not agreed to provide the data speeds requested. If the local exchange telecommunications company or one of its affiliates agrees to provide the data speeds requested, then it must do so within 14 months of receipt of the request.
  3. The prohibition in paragraph (1) shall not be construed to preclude the continued provision or offering of telecommunications services by a political subdivision of the same type and scope as were being provided on the effective date of this section.