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Minn. Supreme Court Upholds City's Right To Build Own Network

BcNexus writes with news from Minnesota that may have significance for cities around the US where municipal networks are either in place or planned: "Here's the latest development in a fight pitting a telecommunication company against government competition. The telco, TDS, took its fight all the way to the Minnesota Supreme Court because it thought the city had no right to serve people's internet, voice and television needs with its own network, but has failed." Also from Minnesota today, BcNexus writes "The State of Minnesota was the first to blink and chose to avoid a court showdown when it dropped its attempt to block online gambling sites."

20 of 252 comments (clear)

  1. Free markets by dburkland · · Score: 5, Interesting

    I'm all for free Markets but the current Internet situation in Minnesota is pathetic. If the people want better service and are willing to fork out the dough let them however this project (if it gets off the ground) has a huge chance of failing like the many other attempts at Municipal Internet.

    1. Re:Free markets by fuzzyfuzzyfungus · · Score: 4, Interesting

      Most of the failed Muni internet setups have been attempts at wide-area wifi. I'd be more inclined toward optimism when it comes to fiber deployments. Wide-area wifi is, unfortunately, a huge pain in the ass. The idea is attractive; but making the tech actually work is a serious headache, at best. Fiber, on the other hand, works pretty well.

      I'm not especially interested in having the government be my ISP(once you get to the peering point, let the market sort it out); but I'd love to seem them handle the "last mile" part of the connection with the same efficiency that they've handled my current municipal utilities.

    2. Re:Free markets by Runaway1956 · · Score: 4, Insightful

      Yeah, free market is good. And, when there is no market, the city should be allowed to enter the market. That sounds pretty free to me!

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
    3. Re:Free markets by LunaticTippy · · Score: 5, Insightful

      Trouble is, I'm sure there's some bit of our tax money being used to make this failnet, whether or not we as citizens use it.

      Oh good god. There are steaming piles of tax money in the telcos and cablecos, not to mention their monopolies. Tough titties if they can't deal with a little competition.

      If you want to be an idiot at a city council meeting, maybe you should bitch about all the wasted billions we've paid for telecom infrastructure that is now falling apart?

      --
      Man, you really need that seminar!
    4. Re:Free markets by poetmatt · · Score: 4, Interesting

      They have this pretty damn well planned. I would not assume this will die especially with the competitive pricing they were originally talking about. It was like $100/mo for a triple-play at 100MB/s or something if I recall correctly. Also they have plenty of the smart enterprising type (ones with actually ethics to boot) behind this whole thing.

      You can tell that this has great potential from 2 things:

      1: the doublespeak from the non-muni: "The lack of judicial action on the part of the (Minnesota) Supreme Court will likely discourage other private enterprises from doing or expanding their business in Minnesota".

      Anyone who screams about lost business when the only lost business is their own, is full of shit.

      2:supreme court basically just nullified any potential to enforce a franchise agreement here, and didn't buy the telco BS.. That is huge for good business and this case will expand far outside the state (and has a lot of coverage at the top of google results today too). I guarantee you this has an enormous country-wide impact.

  2. A fight by DaMattster · · Score: 5, Insightful

    If the telecom companies are unwilling or unable to fork out the cash to build a high-speed, fibre optic network, than they have lost their chance! The whole point of a municiple one is because the telco companies put up such a fight against doing it. Now that the city is undertaking the project, suddenly there is an uproar. Too late .... a day late and a few dollars short.

  3. public broadcasting by sgt+scrub · · Score: 4, Interesting

    Public access to the WWW should be a part of the public broadcasting system for the same reasons information should be freely available to a free people. This, of course, assumes that citizens of the U.S. are still a free people.

    --
    Having to work for a living is the root of all evil.
    1. Re:public broadcasting by FireHawk77028 · · Score: 5, Insightful

      It already is, goto a public library and access the WWW.

  4. Also by DaMattster · · Score: 5, Interesting

    Even if the Minnesota Supreme Court had ruled against a city-owned and run network there are other ways around it. Be clever, start a non-profit ISP and have them build out the network. Fund it through the ubiquitous government grants that the Obama Administration is giving out towards increasing broadband penetration. Also, fund it through city "Technology" grants. The neat thing about legal loopholes is that they sometimes backfire against those that exploit them.

  5. Fail? by copponex · · Score: 4, Insightful

    Will it fail just like municipal electric, water, sewer, and telephone?

    At some point I thought all of these private corporations suing the government because they can't compete with the government for efficiency would cause some light bulbs to go off. As long as it's implemented and controlled at the county level, doesn't prohibit the existence of private offerings, and pays for itself, what exactly is the problem?

    Do you really want to choose the tyranny of Comcast or AT&T over that of a local city or county meeting?

    1. Re:Fail? by copponex · · Score: 4, Insightful

      Those are unfortunate, but good examples of what to privatize and what not to. I don't think utilities and liquor stores and performing arts centers are apple to apple comparisons.

      How does your city do with utilities? If they were owned by a private corporation, do you think you would have more or less influence on them? Would they be more or less expensive? Are these good or a bad things for your community? Those are the important questions to ask.

    2. Re:Fail? by copponex · · Score: 5, Insightful

      I really don't agree. When a locally controlled government operates a utility, it's not really a monopoly, is it? The job of connecting people to the internet goes to a more open and transparent organization of people that will probably to the same quality of work, but have no incentive to screw a person over for money.

      On a more practical level, what's the incentive for a county level internet provider to charge $100 for installation if they only need $50 to cover the cost? What's the incentive for a for-profit organization to do the same thing? Is that money likely to be used to improve your installation or give the boardroom another bump in bonuses?

      If you feel the county charge is too high, you can complain to someone who can actually change things instead of getting bounced around a call center in India. You can get your friends to attend the committee meeting, sue the government, and even demand to see their books to see if they are charging a fair rate. If it's AT&T you're just shit out of luck.

    3. Re:Fail? by dkleinsc · · Score: 4, Insightful

      What if the choices are:
        Comcast - offers you Internet service at $75 / month
        AT&T - offers you Internet service at $70 / month
        Municipal system - offers you Internet service at $30 / month (which is enough to pay for the system)

      Private options in a competitive market can be beaten in all senses by public options if a few conditions are met:
        1. The public organization has to be accountable to their customers via an electoral process.
        2. The public option is required to break even (over a period of time).
        3. The people who go to work for the public option do so because they genuinely want to do a good job. That includes management.

      Something that you need to be very aware of is that oligopolies (e.g. you're left with a choice between Comcast and AT&T and no other options) do not behave in the same way that competitive markets (e.g. lettuce at your local farmers' market) do, because each seller in an oligopoly has a significant amount of pricing power. For instance, airlines used to regularly raise their fares on Friday at 4:45 PM to give all their competitors time to follow suit before Monday morning when the travel agencies opened.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
  6. TDS tactics work! by Locke2005 · · Score: 4, Insightful

    TDS knew they were never going to succeed in blocking this, but they DID succeed in delaying the cities roll-out by a couple years! So, the company lawyers have achieved their objective.

    --
    I've abandoned my search for truth; now I'm just looking for some useful delusions.
  7. Good by DnemoniX · · Score: 5, Informative

    I live in Minnesota and worked in Government IT for a decade. I have to say that the state of broadband is sad. The consumers lack the freedom of choice in most areas of the state. Comcast and Quest in the Twin Cities and Charter almost everywhere else. There are a few smaller providers here and there with a minimal market share. The large companies have a monopoly in their respective territories. Although they deny this fact at every turn. A perfect example of this is Charter, in towns where they are the only player you will be charged at a rate that is much higher than in a city where they have direct competition. When this is pointed out they deny the fact and claim the difference in cost is due to the "cost of doing business in that town". Please. A few years ago in Rochester, MN the Public Utility (RPU) decided they wanted to test ethernet over power lines. As soon as word got out Charter had a melt down and had reps at all of the city council meetings crying unfair competition. The phones at city hall rang off the hook and the behind the scenes threats were made. The project was killed. You figure it out...

  8. Re:Wrong by langelgjm · · Score: 4, Insightful

    The network will be paid with municipal bonds ($25M), these bonds will be paid by the tax money of future residents. This lowers the value of the real estate in the municipality.

    How, exactly? In my state, general obligations bonds are funded by the property tax, and it seems like property taxes go up regardless...

    A quarter of the voters rejected the plan, they are being looted.

    Is the idea that anyone who votes against participating in something shouldn't have to participate it when they are outvoted? Because that's not how government generally works...

    A municipality has no right to exist, much less to pile on debt that it will repay by stealing future residents.

    Why does it have no right to exist? Also, I assume you meant stealing future residents' taxes...

    This is wrong by practically any standard of morality, expect the one where you grant magical super moral powers to governments.

    It might be unwise, and you might disagree with the course of action, but why is it morally wrong, by practically any standard of morality? Considering the projects that many grants that are funded by bonds go to, I'd rather see GO bonds go to something that has broad appeal and use.

    --
    "Anyone who [rips a CD] is probably engaging in copyright infringement." - David O. Carson
  9. Re:Wrong by sribe · · Score: 5, Insightful

    This lowers the value of the real estate in the municipality.

    Sure it does. Just like all the other taxes for all the other services. Police, fire protection, roads, parks, libraries. It's well know that funding any of these lowers property values. It's a fact. Go look it up.

    A municipality has no right to exist...

    Right. People have no right to form a local government in order to provide the amenities of civilization. Wait, you do know how municipalities come into existence, don't you???

  10. Re:Wrong by Abcd1234 · · Score: 4, Insightful

    A quarter of the voters rejected the plan, they are being looted.

    Wow, 75% of people supported the idea, and you're claiming it's somehow anti-democratic and immoral? Geez. I mean, if it had been 51/49 or something, I could see the issue, but a full three quarters of the population supported this measure. That's a mandate by any standard.

    Besides, if that 25% don't like it, they should move to a more conservative municipality. They voiced their opinions. They lost. I know, it's tough, but they should suck it up, leave, or fight to change the system through democratic means. That's the way the system works (well, save for things that are fundamentally human rights issues, in which case you have to balance tyranny of the majority against the rights of individuals... but this is definitely not one of those cases).

  11. Used to run an ISP in Monticello, MN by phsonnek · · Score: 5, Informative

    I was taking business away from TDS, until they got the FCC to allow them to change their tariffs. T-1 circuits for an ISP more than quadrupled overnight. But only for ISPs. If you were the hospital and you wanted a T-1 you got the old rate. I did not have the finances to put up a legal fight; needless to say I was forced out of business. TDS is getting whats coming to them.

  12. Given some of the content of the intertubes ... by Ungrounded+Lightning · · Score: 4, Funny

    We debated this back home in '63, but it was sewers instead of intertubes.

    Given much of the content of the intertubes, perhaps it is still the same debate.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way