President Obama today continued his push for municipal broadband networks while cable companies and Republican members of the Federal Communications Commission claimed government-run networks are often taxpayer ripoffs.

Obama spoke at Cedar Falls Utilities in Iowa, one day after calling for an end to laws in 19 states that make it difficult for cities and towns to create their own broadband networks. Cedar Falls, which is not in one of those states, offers 1Gbps fiber Internet service for $135 a month. Comcast’s fastest residential service tops out at 505Mbps and costs $400 a month.

“Your network is as fast as some of the best networks in the world,” Obama told the Cedar Falls crowd. “Here’s the catch, in too many places across America some big companies are doing everything they can to keep out competitors… In some states it is virtually impossible to create networks like the one you have in Cedar Falls. Today I’m saying enough is enough, we’re going to change that.”

The FCC is considering whether it can preempt those state laws using its authority to promote broadband competition by removing barriers to investment. The FCC is reportedly scheduled to vote on petitions to invalidate state laws in Tennessee and North Carolina on Feb. 26. FCC Chairman Tom Wheeler has told the cable industry he intends to "preempt state laws that ban competition from community broadband," but the plan is not popular in the broadband industry or among Republicans.

“While government run networks may be appropriate in rare cases, many such enterprises have ended up in failure, saddling taxpayers with significant long-term financial liabilities and diverting scarce resources from other pressing local needs,” said Michael Powell, former FCC chairman and current head of the National Cable & Telecommunications Association (NCTA). Powell also touted cable company investment, saying, “[t]he cable industry has invested over $230 billion to build robust broadband networks that reach 93 percent of U.S. homes.”

Wheeler, a Democrat, probably has the votes to preempt the state laws because Democratic commissioners have a 3-2 majority. The two Republicans spoke out against preempting state laws today.

“As an independent agency, the FCC must make its decisions based on the law, not political convenience,” a statement from Commissioner Ajit Pai said. “And US Supreme Court precedent makes clear that the Commission has no authority to preempt state restrictions on municipal broadband projects. The FCC instead should focus on removing regulatory barriers to broadband deployment by the private sector.”

“This debate is about preempting a state’s right to prevent taxpayer rip-offs,” Commissioner Michael O’Rielly said. “Municipal broadband has never proven to be the panacea that supporters claim and the Administration now boasts. Instead, we have seen a long track record of projects costing more than expected and delivering less than promised.”

To counter those arguments, a White House report issued yesterday detailed numerous municipal broadband success stories.

Obama fights cable industry on multiple fronts

Cable companies were unhappy with Obama even before his municipal broadband push because he wants the FCC to reclassify broadband as a utility or common carrier service in order to enforce net neutrality rules. While the NCTA represents the largest cable companies such as Comcast and Time Warner Cable, smaller cable companies are represented by the American Cable Association (ACA).

The ACA issued a statement today saying that it “applauds President Obama for recognizing the key role Cedar Falls Utilities and other municipal providers play in bringing high-speed broadband to consumers.” Cedar Falls Utilities and about 100 other municipal providers are ACA members, the group noted. But these small providers should not have to face new rules, the ACA said.

“The application of utility rules on smaller broadband service providers—entities that pose no risk to an open Internet—will serve only to create disincentives to upgrade plant and expand service areas,” the ACA said.

The ACA has also asked the FCC to exempt small providers from common carrier rules.

Community broadband advocates praised Obama’s speech today.

“The President is right: we need to invest in high-speed broadband networks to help ensure that all Americans have affordable, quality Internet options that meet their needs,” policy analyst Danielle Kehl of New America’s Open Technology Institute said in a press release. “Truly addressing the digital divide in America will involve looking to creative and alternative solutions, especially in communities where the incumbent carriers are not delivering. As we’ve found in our research, many of the leading networks—the ones that offer consumers fast speeds at affordable prices—are not in big US cities like New York or Washington DC, but actually in places where the local communities have decided to remove barriers or invest in their own infrastructure.”

Obama said faster broadband speeds are needed to help small local businesses grow, and for students to access online courses and job opportunities.

“Right now, about 45 million Americans cannot purchase next generation broadband,” he said. “That next generation broadband creates connections that are six or seven times faster than today’s basic speeds, and only about half of rural Americans can log on at that super fast rate.”

According to the FCC, 55 million Americans cannot buy service of at least 25Mbps downstream and 3Mbps upstream, while 53 percent of rural Americans (22 million in all) lack access to those speeds.

Where high speed Internet exists, consumers usually have just one choice, Obama said. “They’re pretty much at the whim of whatever Internet provider is around… and meanwhile you’re wondering why your rates keep getting jacked up when your service doesn’t seem to be improving.”