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crowd out
Content tagged with "crowd out"
Crazy Talk from Another Telco-Funded Think Tank - Community Broadband Bits Podcast 200
This week, we discuss a report with zero credibility from the State Government Leadership Foundation, which was written by a well-known telco economist from the Phoenix Center. Entitled, "The Impact of Government-Owned Broadband Networks on Private Investment and Consumer Welfare," the report [pdf] makes so many factual errors that one wonders just how much these telco think tanks really take pride in their work. George Ford authored the report. Ten years ago, he demonstrated that municipal networks most certainly did not crowd out private investment. The biggest change since then is that his employer went from supporting competitive networks to opposing them - when BellSouth SBC bought AT&T and took its name. Prior to that acquisition, AT&T actually supported competitive carriers and was even going to be an ISP on the UTOPIA network. As goes AT&T, so goes the Phoenix Center. For episode 200 of the Community Broadband Bits podcast, we discuss this report and why it has no credibility. One of my favorite points is that Ford argues municipal networks average an incredibly high take rate, which flies in the face of all the other criticism municipal networks typically face. You just can't make this stuff up.
This show is 30 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.
Transcript below.
We want your feedback and suggestions for the show-please e-mail us or leave a comment below.
Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.
Thanks to Forget the Whale for the music, licensed using Creative Commons. The song is "I Know Where You've Been."
Responding to "Crazy Talk" - Community Broadband Bits Episode #50
For our 50th episode, we're trying something new: Lisa and I respond to three common claims made by opponents of community owned networks. We owe these three particular arguments to the Executive Director of the trade association of Wisconsin telephone companies. Each of the clips we respond to come from claims he made at a workshop at the 2012 WiscNet conference.
We play a short claim by him and then Lisa and I respond to it. For this show, we look at claims that telephone companies already serve everyone with broadband, that the rapid iteration of mobile phone technology delegitimizes public sector investment in networks, and that public investment "crowds out" private investment.
These are very common arguments offered every time a community considers building its own network, but they are quite weak. As Joey Durel, Mayor of Lafayette, so often reminds us, the big companies don't win by having good arguments. They win by buying steaks and football tickets -- lobbying. Campaign contributions help too.
At any rate, let us know if you like this format and what questions we should consider the next time we do it. We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.
Read the transcript from our discussion here.
This show is 12 minutes long and can be played below on this page or subscribe via iTunes or via the tool of your choice using this feed. Search for us in iTunes and leave a positive comment!
Listen to previous episodes here. You can can download this Mp3 file directly from here.
Find more episodes in our podcast index.
Thanks to Eat at Joe's for the music, licensed using Creative Commons.
Bureaucrats as Entrepreneurs: Do Municipal Telecommunications Providers Hinder Private Entrepreneurs?
We consider how government-owned enterprises affect privately owned rivals. Specifically, we compare the types of markets that municipally owned telecommunications providers in the United States serve to the types of markets that competitive local exchange carriers (CLECs) serve. We find that CLECs focus on potential profitability while municipalities appear to respond to other factors, such as political considerations or the desire to provide competition to incumbents. As a result, municipal providers tend to serve markets that CLECs do not. We also find that the presence of a municipal provider in a market does not affect the probability that a CLEC also serves that market. Our results suggest municipalities may not pose a significant competitive threat to CLECs and do not preclude CLEC participation.
Empirical Study: Does Municipal Supply of Communications Crowd-Out Private Communications Investment?
There are 2,007 municipalities across the United States that provide electricity service to their constituents. Of these, over 600 provide some sort of communications services to the community. An important policy question is whether or not public investment in communications crowds out private investment, or whether such investment encourages additional entry by creating wholesale markets and economic growth. We test these two hypotheses – the crowding out and stimulation hypothesis – using a recent dataset for the state of Florida. We find strong evidence favoring the stimulation hypothesis, since public investment in communications network increases competitive communications firm entry by a sizeable amount.