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Fast, affordable Internet access for all.
The demand for this "Extreme" tier speed, however, is "extremely low," says spokesman Steve Kipp. Later this summer, the ISP plans to offer 105 Mbps download and 12 Mbps upload speeds.I suspect people mostly aren't interested in the extreme price for supposed extreme speeds. A number of communities that have built their own networks offer faster (and symmetrical) connections for considerably less. However, even there most people opt for lower tiers rather than the fastest speeds. What the article utterly misses is that faster speeds are only one piece of the reason communities build these networks. Yes, next-generation networks offer faster speeds now and have much more capacity for future expansion than cable networks (and DSL is so far behind as to not be comparable). But public ownership is about more than faster speeds. It spurs competition and lowers prices for everyone. It offers accountability, ensuring the network meets the needs of the community now and in the future. It allows public agencies to get faster connections at lower prices (though Seattle already has this through its previous investments in fiber-optics). As Seattle owns City Light, it would have greater abilities to invest in smart-grid and metering applications to make the city more energy efficient. When the community owns the network, it can ensure everyone has access to fast connections (particularly children in low-income neighborhoods where absentee companies may be reluctant to invest). But to get back to the argument about network speeds, there is an argument for FTTH and faster speeds even if people do not demand them right now. Until people have access to robust connections, applications will not be created to take advantage of them.
“Shall the City of Opelika, Alabama, be authorized to acquire, establish, purchase, construct, maintain, lease and operate a cable television system for the purpose of furnishing cable service to subscribers?” That’s what the ballot will read in Opelika on Aug. 10. And the answer: absolutely yes.Unless, of course, you are a massive company like Charter that already offers services. If you are Charter, you might make absurd claims that cable is somehow more reliable than fiber. The Charter Government Relations Director apparently suffers from what we might call the make-ity-up disease.
"We can't sit here and wait for a gift from Google to fall on us from the sky," said Tom Loveland, whom Rawlings-Blake has appointed the city's volunteer Google czar. "This is our future we're talking about here. Those of us involved in the conversation have seen what other cities have already accomplished. These folks managed to get themselves wired without Google. If they can do it, we can do it, too."Bingo. Apparently, lots of Baltimore folks are interested in the idea. Some 200 people turned out for this discussion and the group has a lively online discussion group as well as a site detail the community support for the project. The Mayor has created a panel to study the manner. They have already turned to ask Mayor Durel of Lafayette, always a good start. Another place panels like this can start is the still-relevant report by a Task Force in St. Paul. According the article in the Sun, an FCC staffer also presented to the group of 200:
At the symposium, John Horrigan, consumer research director at the FCC, said studies have shown that the technological availability of basic broadband service is not the main problem because 95 percent of Americans have the technical means to access it. Rather, nearly a third of Americans are choosing not to use broadband, citing high costs or a lack of digital literacy or computer skills.These are the sort of statements that infuriate me because they incorporate so many important caveats. 95% of Americans may have access to something faster than dial-up. But probably not given how much the telcos overestimate the reach of their DSL. Though Horrigan notes the high costs, we know very little about what these costs are. If someone could buy a connection only slightly faster than dial-up at a cost of 3x dial-up, they are probably smart to stick with dial-up. It tells us nothing of what they would do with a real choice.
“Economic development is part of what we’re charged at the Power Board with accomplishing. If the current (broadband) infrastructure is not sufficient to allow economic development to grow this market, something needs to change.” If the private sector either isn’t willing or isn’t able to create adequate infrastructure, Grandy said, “then an entity such as the Power Board may need to.”Tennessee cities without publicly owned networks may find themselves in an even tougher bind than similar communities elsewhere. With Jackson, Bristol (TN and VA), Chattanooga, Pulaski, and others, businesses do not have to move far for great networks run by the local public power company.
Grandy, though, “doesn’t think there’s any question” that the Johnson City area will reap the whirlwind, economically speaking, if it fails to scale up local broadband capability. He has been involved in the recent search for a CEO to run the metro area’s new Economic Development Council, and a half-dozen candidates who visited early this month made it abundantly clear that broadband capability is as important an issue today as dependable electricity was 80 years ago.Public power transformed Tennessee. Publicly owned broadband may be necessary to keep it transformed.
The summary indicated that total funding costs have decreased from $11,615,791 in December 2008 to $10,663,410 in December 2009. Shaw estimates that operating income would make the system financially feasible after the third year and could enable the city to pay off its debt in 15 years vs. 16 years as had been predicted two years ago.A press release from Uptown Services, a broadband consulting company provided some history:
They originally hired Uptown in 2004 to complete a broadband feasibility study. The results of that study were promising, but the City chose to wait for the economics to improve as the technology matured and costs came down over time. Uptown completed a refresh of the original study in 2008. The case had improved, but the City wanted to fine tune the cost estimates through the completion of an actual system design prior to making any final decisions on a City wide deployment. Uptown was selected in 2009 through an RFP process from a slate of qualified proposals to complete this design.Judging from the local site explaining the networks, they really understand the power of publicly owned broadband. The FAQ include this gem:
Remember this critical point: The incumbents look for a profit and answer to their shareholders, while the City of Dover looks for the betterment of the community and answers to its citizens.They city has Verizon and Comcast as incumbents respectively. I suspect Dover is one the thousands of communities Verizon is trying to dump on Frontier Communications rather than invest in smaller communities. The stumbling block currently appears to be deciding how to finance the proposed network.
Government is often criticized for eliminating competition, inefficiently providing private services, and removing the profit motive. However, market failures are often where governments are asked or begged to step in, and, when accomplished correctly, can provide new opportunities for private enterprise.Glenn is absolutely right both in capturing some of the criticisms leveled at public networks as well as noting that publicly owned broadband tends to occur in the most difficult environments. Contrary to telco rhetoric, local government officials tend not to want to jump into telecommunications efforts unless they see it as vital for the community. They are busy enough and these networks take years of planning, public hearings, and lots of loud attacks from the very companies that refuse to build the needed networks. But look at the first two items that Glenn notes government is accused of: eliminating competition and inefficiently providing services. How is it that it can do both? Governments cannot coerce people into using the network and federal regulations prevent the local government from abusing its authority over the rights-of-way for the public network. Local governments can use untaxable bonds but private companies get depreciation, tax incentives, and can cross-subsidize from the nearby communities where they charge monopoly prices. As for removing the profit motive - this is hardly a criticism. Infrastructure should not be controlled by any entity with a profit motive - it is the foundation of all other markets.