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LA Supreme Court hears utility broadband appeal

14th Nov 2006, 23:27 GMT

Its a government utility against the telecommunications industry, as the Louisiana Supreme Court hears arguments on the Lafayette Utilities Systems plans to deploy a phone, cable and Internet service, the Advocate reports. Voters approved the plan but Louisiana 3rd Circuit Court of Appeals stopped the plan, saying that a law passed in 2004 at the behest of the telecom industry prohibits the utilitys funding plans. LUS wants to borrow money at market rates to cover any shortfalls it may owe on its $125 million communications bonds. The Local Government Fair Competition Act, passed by the Louisiana Legislature in 2004, was supposed to ensure a “level playing field” between privately owned and publicly owned communications businesses. A portion ...

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