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February 24, 2005 2:34 PM PST

Lafayette hits snag in fiber build

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legislators. And when that doesn't work, they say the people should vote on it, knowing fully well that they can outspend any government agency on advertising. We've already seen them distort the truth on this subject."

Lafayette is just one of many cities trying to build its own broadband network. Proposals have already sprung up all over the country in cities such as Provo, Utah; Chaska, Minn.; and Palo Alto, Calif. Larger cities, such as Philadelphia and Los Angeles have also started looking into building their own broadband networks.

These projects have ignited a firestorm of opposition from the Baby Bell phone companies and cable operators, who view the existence of these networks as threats to their businesses. As a result, they have spent millions of dollars lobbying state legislators and fighting court battles to make sure that these networks aren't built.

In 2003, a referendum was put before voters in the Illinois cities of Batavia, St. Charles and Geneva. The community known as the Tri-Cities planned to build its own fiber network. When funding for the project came down to a referendum, SBC Communications, the local phone company, and Comcast, the local cable provider, spent millions of dollars to influence voters. In the end, the referendum failed, and the project has been put on hold.

"What happened in the Tri-Cities in 2003 is the biggest example of the phone and cable companies' new tactics for stopping these projects," said Jim Baller, a principal attorney for the Baller Herbst Law Group, which represents many municipalities. "But even if a city is successful in winning the referendum, it's an expensive and time-consuming process."

The Lafayette Utilities System can appeal the court's decision, but Huval said the utility is still weighing its options.

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