Slashdot Mirror
Broadband War & an Interactive Municipal Map
Ant writes "Broadband Reports mentions a CNET News.com story on the U.S.'s growing debate over municipal broadband. Across the country, acrimonious conflicts have erupted as local governments attempt to create publicly funded broadband services with faster connections and cheaper rates for all citizens, narrowing the so-called digital divide. The Bells and cable companies, for their part, argue that government intervention in their business is not justified and say they are far better equipped to operate complex and far-flung data networks.
There is also an interactive municipal broadband legislative map that details the major battlegrounds on the issue. At stake is the fate of high-speed Internet access for millions of Americans, hinging on a fundamental question of civics and economics--whether the government or private industries should take the leading role in building out what's considered this generation's critical infrastructure challenge. Its map shows a breakdown of muni-projects in each state, which have or are developing fiber or Wi-Fi projects, and are facing (existing or pending) legal barriers to doing business."
Actually it happened in the town i live (Not US). I have a much better service and speed than the 'regular' users of my ISP, because our town created a non-profit organization to act as a 'legal proxy' towards the isp. Yay for me.
It takes a man to suffer ignorance and smile
Be yourself no matter what they say
Wouldnt the philosophical analogous argument be that libraries are publicly funded, and provide free information and entertainment to anyone and everyone?
Bookstores still thrive, book publishers still thrive even though probably almost everyone in the United States could get through life never having to buy a book personally.
The idea of public broadband has always been an attractive one for slashdotters, the incursion into this arena by Grant County PUD in central Washington State stands as an example of why we don't want bureaucrats meddling in business.
In this state the PUDs are treated as municipalities under the law and are given a set of rules under which they can operate. Broadband and electrical power are different services so it took an act of the Legislature to allow them to enter the market. The legislature, under some pressure from the big telecoms who were afraid that the PUDs would "cherry pick" the larger communities and leave the rural people to fend for themselves, allowed the PUDs to be "wholesale" only. The first thing Grant County PUD did was ignore that law.
Grant County PUD had first partnered up with two local ISPs which charged $20 to $25 per month for the broadband servoces back at the inception of the project in 1999. But at the same time the Manager of that PUD was trying to attract an outside competitor, also a utility provider, to enter the market in this county at a subsidized rate of $8 per month.
The PUD did attract that utility but only by entering into secret (and illegal) agreements to subsidize the program at cost plus 10%. So the new provider would risk nothing and could make 10% on the rate-payer's money even if they gave away their services for free. Then the PUD employees threw as many of the new customers to this new competitor as possible while their managers used their position as investors to pressure prices to a point where the commercial ISPs could no longer compete profitably.
It was only after the PUD had spent several million dollars propping up this outside provider that the story became known. Meanwhile, the PUD had raised the electrical rates to cover the $100 Million cost of fibering only 1/3 of the County but lied when asked about it. The Commissioners and Managers claimed that the rate increases were due to other factors. However their own emails, obtained under the State's public disclosure act, showed this to be untrue.
Agricultural interests were incensed because they use a lot of that electrical power. A large farm might have a $500k yearly power bill for their irrigation pumps. While 4% isn't much for my house, it's a chunk of money on a half-million dollars.
It took almost a year after the discovery of the secret contracts and a State Auditor's report which also found illegal and improper actions, to rid ourselves of the management team that led us into this debacle. The largest ISPs in the area, including the first two to partner up with the PUD, went out of business and were gobbled up by another outside competitor; costing jobs and an economic drain on the communities' resources. The Commissioners who were supposed to keep a rein on the PUD managers are now up for re-election and facing some tough questions.
The problem with bureaucrats going into business is that, essentially, they don't understand profit and loss. It's all other people's money and if they make a mistake they just raise the rates to cover it. We could have fibered this County up for the money they spent, had they spent that money wisely. Instead they created a NOC they thought they could make profitable (not at $3 million a year to operate they couldn't), they installed fiber to the areas where their managers lived regardless of population density (it turns out the telecoms fears of "cherry picking" were well-founded, but the managers weren't smart enough to do it that way), and they drove jobs and money out of the area.
Had they simply created the infrastructure for the product instead of getting involved in creating subsidies for favored businesses we would have been ok. But that's the problem. Bureaucrats don't make good business people.
So if you don't want to see jobs go away, money disappear and your power rates rise, treat the entrance of government into business with caution. These things are run by politicians, not business people. And it's not their money.
Not only is it unwise to let private monopolies in broadband develop because of the excess costs to support lobbiests and bribes to elected officials, it's also unwise to institutionalize private monopolies as the gatekeepers to our information. Democracy may be cranky and ineffient, but the alternatives are much worse.