Tennessee enacts law limiting broadband service regulation by state entities

On February 25, 2025, the Tennessee State Legislature introduced Senate Bill 556, a significant piece of legislation aimed at reshaping the regulatory landscape for broadband internet access and interconnected Voice over Internet Protocol (VoIP) services in the state. The bill seeks to limit the authority of state agencies, including the public utility commission, in regulating these services, thereby promoting a more business-friendly environment for providers.

The primary provisions of Senate Bill 556 include restrictions on state agencies from administering federal grant programs related to broadband, as well as prohibiting the application of general consumer protection laws to broadband providers. Additionally, the bill modifies the rights and obligations of telecommunications carriers under the federal Telecommunications Act of 1996, and it restricts the assessment of fees related to enhanced 911 services and other telecommunications relay services.

Debate surrounding the bill has been notable, with proponents arguing that it will encourage investment and competition in the broadband sector, potentially leading to improved services for consumers. Critics, however, express concerns that the bill undermines consumer protections and could lead to a lack of accountability among broadband providers. The opposition highlights the potential risks of deregulation, particularly in rural areas where access to reliable internet service is already a challenge.

The implications of Senate Bill 556 are multifaceted. Economically, the bill could attract more broadband providers to Tennessee, fostering competition and potentially lowering prices for consumers. Socially, however, the lack of regulatory oversight may exacerbate existing disparities in internet access, particularly for underserved communities. Politically, the bill reflects a broader trend of deregulation in telecommunications, which may resonate with certain voter bases while alienating others who prioritize consumer rights.

As the bill progresses through the legislative process, its future remains uncertain. Stakeholders from various sectors are closely monitoring developments, and the outcome could significantly impact the state's broadband landscape. The bill is set to take effect upon becoming law, emphasizing the urgency of the legislature's agenda in addressing broadband access and regulation in Tennessee.