The essence of the objection to municipal involved in communications is that public intervention will undermine the private sector due to the cost advantages uniquely available to governmental entities, thus creating a barrier to public entry. As we have shown, however, this objection fails in two ways: First, municipalities tend not to become involved in communications in markets characterized by effective competition; and second, where municipalities do become communications providers, private entry into the market tends to be stimulated rather than suppressed.
Fork in the Road For UTOPIA: Forward or Backward? Community Broadband Bits Episode #85
The Utah Telecommunications Open Infrastructure Agency, which we have written about many times, is at a crossroads. An Australian corporation specializing in infrastructure is prepared to infuse $300 million into the project but the Utah Legislature may prohibit it from expanding and even from using existing connections outside member cities.
Jesse explains the potential Macquarie investment and how the bill HB60 could hurt both that deal and more broadly, connectivity in the area. Pete Ashdown discusses how he learned of the bill and what it would mean to his business if the network were able to be expanded.
We previously spoke with Pete Ashdown and Todd Marriott about UTOPIA in Episode 3 of this podcast.
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.
Thanks to Fit and the Conniptions for the music, licensed using Creative Commons.