The city of Lafayette, La., has hit a snag in its plans to build a fiber-optic network to offer citizens cheaper telephone, television and high-speed Internet service. On Wednesday, a state district judge ruled that the Lafayette Utilities System (LUS) must follow a different portion of state law to issue $125 million in bonds to pay for its planned fiber-optic telecommunications business. The ruling opens the door for a special election to decide whether the LUS can borrow the money necessary to fund the project. The utility system, which built a fiber network to service its utilities business, has been offering wholesale bandwidth services to at least 11 Internet service providers, and providing retail broadband services to city agencies, since 2002. Now the LUS wants to expand this network, and provide residents and businesses with cable, phone and high-speed Internet services over fiber connections into homes and businesses. BellSouth and Cox Communications, the local telephone and cable companies serving Lafayette, have strongly opposed the utility system’s plan. Last month, the service providers filed a lawsuit against the LUS, alleging that it was using a portion of state bond law that contained no provision for citizens to call for a public… Read full this story
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