La. Rep Blasts Cable During Broadband Bill Hearing

Controversy over a broadband bill spilled out into the open at a Louisiana Senate hearing Wednesday. The Senate Commerce Committee deferred the bill for a week as it attempts to resolve cable industry opposition to part of HB-700. That provision would require that Louisiana broadband grant winners collect data for the state broadband office about locations of new broadband infrastructure and “existing water, sewer, or gas infrastructure in the path of excavation funded through” the Granting Unserved Municipalities Broadband Opportunities (GUMBO) program. Lashing out against cable for what he claimed was a “hit piece” against his son, sponsor Rep. Daryl Deshotel (R) nearly spiked his bill. Committee members convinced him not to do so.

The broadband bill looked like it was sailing along after the Louisiana House approved it unanimously last week (see 2404160026). But then, in a Monday blog post, Taxpayers Protection Alliance (TPA) accused Deshotel of family “cronyism.” The nonprofit said the lawmaker’s son opened a business, Subterra Technologies, whose website says it delivers "comprehensive online maps for Louisiana’s utility lines.”

“I want to thank the cable companies for the hit piece they put out on my son,” Deshotel said as he opened discussion of HB-700. He acknowledged his son's business uses GPS to find underground lines, but added, “I can’t do anything about his ambitions and what he wants to do.” Later in the hearing, Deshotel responded to opposition by saying, “It's a loss for the people of Louisiana that the cable companies are that greedy."

The alliance wrote the blog post about Deshotel in response to a phone tip from an anonymous whistleblower, TPA President David Williams told us after the hearing. The caller said he worked for “the industry” without offering specifics, Williams said. The alliance conducted the research and did “due diligence” to write its report, as the group has done with previous whistleblower tips, he said. “You have to double and triple check everything that they say because there might be an ax to grind.” Asked if the cable or telecom industry gives money to the alliance, Williams said TPA doesn’t disclose its donors. Louisiana Internet and Television (LIT) didn’t comment on Deshotel’s claim that cable was behind the article.

Set to receive $1.35 billion in federal cash from NTIA’s broadband, equity, access and deployment (BEAD) program, Louisiana expects it will have $200-$500 million left over after it distributes enough to connect everyone, Deshotel told the committee. So the legislator wants to use $20-$35 million of that to gain a better sense of where every kind of underground infrastructure is located, he said. That information could prevent costly cuts to fiber, water and other kinds of lines in the future, he said. But under federal rules, the state may pay BEAD money only to ISPs or electric cooperatives. As a result, said Deshotel, the state would increase awards -- possibly adding 7% to funding requests -- so that BEAD awardees could perform the location work.

The broader bill addresses more topics and marks an effort to clean up the state’s broadband law, ensuring it aligns with the initial plan the federal government approved in December for the BEAD program (see 2312150047), said Veneeth Iyengar, executive director for state broadband office Connect Louisiana. For example, one other section would revise the reimbursement schedule so that awardees can receive 10% of their grant immediately after approval, he said. That’s meant to help with businesses’ cash flow, he said.

But the proposed data collection could discourage GUMBO participation, with dire effects on broadband deployment, said LIT Executive Director Lauren Chauvin. The state cable association, whose members include Cox, Comcast and Charter Communications, was the bill’s lone opponent at the hearing. Seven LIT members who previously participated in GUMBO “are very large and great companies that are making this program go,” said Chauvin. “If cable internet service providers cannot participate, that is not something Louisiana wants.”

The cable group has “simply asked for amendments so that we feel comfortable with this bill,” said Chauvin. Requiring mapping before construction would cause delays and divert money from network building, she said. Also, the LIT head raised concerns with the bill identifying state broadband office Connect Louisiana as the data’s custodian, since she said that would duplicate the existing 811 system. Deshotel said data would be shared with 811, but even if that’s the case, current confidentiality protections aren’t strong enough, said Chauvin.

It's “absolutely false” that cable suggested any amendments, said Deshotel: He asked the group for proposed edits and invited its members to a meeting, but they didn’t show or provide suggested language.“Obviously,” the industry group doesn’t want broadband expansion, the legislator said. Visibly frustrated, Deshotel then told the committee that he wanted to voluntarily defer HB-700, a legislative move that would kill his bill.

But Sen. John Morris (R) asked Deshotel to hold on. Saying he thinks most members support the bill, Morris proposed delaying a committee vote for one week to allow for additional conversations with opponents. The senator noted that he doesn’t “think the name-calling in either direction is productive.” Everyone wants more broadband and what cable seeks “doesn’t seem to be unreasonable,” he said. Morris offered to “mediate some language … just to clarify” what the rules would be. "I don't see any need to try to spike the bill at this point."

“I’m not going to cave to one company,” replied Deshotel, casting doubt that all LIT’s members opposed the proposed data collection. But Morris persisted, adding that he understands Deshotel is “seeing red” over the post about his son. Committee Chairman Beth Mizell (R) agreed with Morris that the matter is worth a week’s discussion. "We all want this done, but there's got to be some clarity" on the proposal, she said. Finally, Deshotel agreed to wait. Mizell tried to assure the state rep: “We're going to get this worked out and next week will be a lovely day.”

However, nothing Deshotel said alleviated TPA’s concerns with the bill, Williams told us. Louisiana already has an 811 system for locating conduits, he said. “If you're a cable company or a wireless company, you need to be investing money in closing the digital divide, not doing stuff that there's already a service for.”

The committee much more quickly advanced a separate broadband bill from Deshotel (HB-617), which would let the broadband office use certain unobligated GUMBO funds for “nonbroadband infrastructure project uses.” That might include telehealth, said Iyengar. The House unanimously passed the bill earlier this month (see Ref:2404120041]). Earlier in the hearing, the committee approved HB-308, which would require cable providers who plan to terminate their franchise certificate to notify customers at least 30 days before they end service.