Internet included in the list of “utilities”
When the City of Monticello, Minnesota tried to build its own fiber network due to its dissatisfaction with the current DSL and cable offerings, it set an example for other towns and cities. The city planned to use the revenue bonds to fund the Fiber project (fiber-to-the premises network). It was sued by the local telephone service provider, Bridgewater (a unit of TDS Telecom) in 2008. The argument put forth by TDS was that the city could not use the funds for this project. According to the Minnesota law, the revenue bonds can be issued only for certain reasons which included utilities. TDS argues that internet is not a utility because it does not have the "near universal usage common to a utility " and hence the city bonds could not be used for the Fiber Project.
On June 2, 2009 the state Court of Appeals ruled in favor of the city of Monticello saying that internet can be considered a utility and the city can utilize the funds to install fiber in the city. The court said, “the definition of municipal public utilities appears broad enough to contemplate Internet service. ”
The city can now go ahead with its project but TDS has already installed fiber throughout the city while the case was in court. According to Chris Mitchell of the Institute for Self-Reliance this may be a problem for the project because now they will have to validate the installation of fiber. The success of this project is not yet known however the ruling in the case encourages other communities to plan similar projects to improve their broadband services. Characterizing internet as a utility will serve as a factor in nationwide broadband deployment including rural areas.