House Budget Committee member Capuano (D-Mass.) told FCC in lette...

House Budget Committee member Capuano (D-Mass.) told FCC in letter dated June 4 that Commission shouldn’t strip local govts. of their ability to regulate broadband access to Internet over cable. Capuano, former mayor of Somerville, Mass., said rulemaking on issue would “drastically impact” local communities’ ability to charge franchise fees based on cable modem service revenue. “This creates economic hardship for thousands of cities and towns, many already struggling with revenue shortfalls,” Capuano wrote, saying rulemaking had potential to deny communities opportunity to recoup expense of providing right-of-way to cable companies. “If local communities cannot recoup these expenses, they will be forced to subsidize these firms at the expense of providing services to taxpaying citizens,” he wrote. Capuano said rulemaking also would raise constitutional issues by expanding federal authority over local govts. and could eviscerate local communities’ leveraging power, which he said often must pressure cable companies to provide better customer service and help local communities address “the digital divide.” Capuano complained that cable companies engaged in “economic redlining” by upgrading their networks in affluent neighborhoods while ignoring poorer ones. “Local governments have been leaders in forcing cable firms to provide these new services to every household,” he wrote. “Removing this regulatory power will only exacerbate the division between rich and poor.”