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Not long ago, we shared information on MINET, the municipal network in Martinsville, Virginia, that serves schools, municipal facilities, and about 30 local businesses. We noted that businesses are attracted to the area and cite the capabilities of the fiber network as a driving force.
The Martinsville Bulletin now reports that city leaders have been approached by more local businesses interested in saving money by connecting through the network. The Bulletin spoke with City Manager Leon Towarnicki who said "we are essentially maxed out” in staff and resources. Obviously, economic development through MINET is moving along well. The City Council is now considering the costs and benefits of expanding.
The city is working with CCG Consulting to develop a business plan. CCG will soon begin a business and residential survey and review of the city's current network. The survey and plan will explore the possibility of deploying a fiber-to-the-home network and communication system, but Martinsville will shy away from operating a cable television system. From the article:
Asked if the city would try to provide cable TV service again, City Attorney Eric Monday said, “We tried it. We litigated. We lost. We’re done.”
Martinsville made an attempt to acquire a retail cable television service in 2006, but found itself in a long and expensive court battle. Adelphia had previously provided cable in the area but filed for bankruptcy in 2002 and as a result, failed to honor its franchise agreement. At the time, the city landfill had just closed and the city was looking for other ways to generate revenue. They wanted to purchase the network and tried to block Time Warner Cable and Comcast from doing so. Time Warner Cable wanted to purchase the network and then engage in a like-kind exchange. This technique is a common tool large cable corporations have used to ensure geographic monopolies.
Time Warner is an $18 Billion dollar company with $1.3 Billion in profits in 2010. Verizon did $106 Billion with $2.5 Billion dollars in profits in 2010. They're not worried about Chino Hills. In fact both of these companies are actively lobbying states around the country to prevent local municipalities from entering the broadband market. I'd like to see our city enter this business and give these national companies a run for their money.Our video (included below) comparing community fiber networks to services from big incumbent providers has some there thinking that they should consider building their own network to prepare for the near future when much higher capacity networks will be needed to take advantage of all the applications moving to the cloud.
We are posting another perspective about Burlington Telecom, this time from Tom Streeter, a Professor of Sociology at UVM and author of Selling the Air, The Net Effect and other works about telecommunication. He circulated this letter in the community and gave us permission to republish it here. Read his original PDF here.
There's no doubt that the Burlington Telecom situation is a serious mess. But in all the accusations and counter-accusations, it can be hard to get some perspective on the nature of the problem. I've been studying things like cable TV, the internet, and telecommunications for most of my career, and I think a sense of the larger picture might help.
First, nobody has been accused of lining their private pockets with public money. There is nothing about the current scandal reminiscent of the one surrounding BT's former legal antagonist Adelphia Cable, whose CEO is still cooling his heels in jail for essentially stealing from his own company. Second, Burlington Telecom is hardly alone in having a hard time paying the bills. Vermont's primary telephone service provider, Fairpoint, filed for bankruptcy late in 2009, and cable providers nationwide are scrambling for ways to stay alive nationwide in the face of the first annual decline in cable subscriptions in the industry's history. Times are extremely tough throughout the industry, and the fact that BT is in a financial tight spot is by itself hardly surprising.