A legal fight is brewing in Pharr over a new rule requiring all new homes and businesses to connect to the city's fiber optic internet lines.

City officials say the mandate, which was approved during a Monday city council meeting, ensures future subdivisions have fiber optic infrastructure. The city says its lines can support multiple providers.

But internet companies are pushing back. Their representatives claim the rule gives Pharr Connect, the city's internet service, an illegal advantage.

"Private providers are left trying to compete in a market where the city's writing the rules to benefit its own network," AT&T South Texas Director of External Legislative Affairs Mario Barragan told commissioners during the meeting. "This government overreach discourages private investment."

Read the full statement from AT&T on the measure below: 

"Consistent with our work across Texas, we are committed to expanding reliable, high-speed service and investing in infrastructure that gives consumers meaningful broadband choice. Broader expansion has been constrained by the City of Pharr’s actions and policies that make it harder for private providers to invest and compete.

Unfortunately, this proposed ordinance is the latest example of a City of Pharr decision that conflicts with state and federal law. It goes far beyond a typical construction standard by requiring conduit, fiber, and dedicated equipment for the City’s municipal network as a condition of occupancy. In effect, it uses the City’s authority to advantage its own broadband system, shifts costs to developers and ultimately families, and makes it harder for private providers to compete.

That is not competitively neutral and, in our view, is unlawful. If adopted, this ordinance would discourage investment, limit consumer choice, and harm the residents and businesses of Pharr. Residents deserve real competition, better service, and more options — not barriers that tilt the playing field in favor of a government-owned provider.

We remain ready to work with the City on a lawful, balanced approach that promotes investment, preserves competition, and expands connectivity for Pharr residents and businesses."

Pharr city officials say they want the community to have reliable internet access. The mayor says the companies are only looking out for their own profit.

Legal letters have been sent out.

Click here for a letter from Charter Communications to the city of Pharr on the new mandate. 

Read the full statement from the city of Pharr below:

“Pharr City Commissioners approved an update to the city’s existing fiber optic ordinance, originally adopted in 2023, to address gaps identified as new developments occur and to continue prioritizing the needs of our residents while ensuring they receive high-quality services at the lowest possible cost.

The updated ordinance ensures all future subdivisions include fiber optic infrastructure as part of their utility planning. Developers will be required to incorporate fiber into their designs, either through city-facilitated coordination or by working with their own providers. This ensures consistent, reliable internet access for residents.

As our city continues to grow, we are planning for the future by recognizing fiber connectivity as essential infrastructure. Just as it is required to install water lines, sewer systems, and other amenities in new developments, it will now also be required to include fiber infrastructure. This ensures every new neighborhood has access to reliable, high-speed internet from day one. Residents will not be responsible for the cost of the fiber infrastructure.

Through these efforts, we remain committed to putting our residents first and improving their quality of life. We are working to close the digital divide and ensure no child is left behind by making sure all families, regardless of where they live, have access to an affordable, high-quality internet solution."