In terms of fiber-enabled cost savings, 120 businesses in Bristol reported an average of $2,951 in savings per year, while, in Reedsburg, 33 cited annual cost savings averaging $20,682. Twenty Jackson businesses reported cost impacts due to fiber, with one large organization reporting a total of $3 million in savings. The other 19 Jackson respondents reported a net average cost increase of $3,150 per organization.
Community Broadband Quotes
Another aspect of RUC’s community focus is the fact that it provides customers with two local TV channels, in contrast to Charter, which offers none. In the wake of a Wisconsin law that removed requirements that cable operators provide financial support for PEG (public, educational and government) access channels, Rice says RUC is working on plans to continue operating its local channels, to make them more attractive and, in doing so, to further differentiate its service from Charter’s in terms of being responsive to the local community.
One early indicator of such “public” value is the fact that RUC’s fiber network now connects Reedsurg’s schools with more bandwidth than they had before, and at a lower price. Before the network was available, schools were paying $650-$750 a month for T-1 service, which delivers only 1.5 Mbps of capacity. Today, RUC provides 100 Mbps links between school buildings at a cost below $500 per month.
[Tim] Nulty echoes comments from other muni-fiber pioneers in terms of their attitudes toward customer service. While private companies, he says, are inclined to spend the least they can on customer service without losing customers, the approach taken by BT is to "provide the best customer service you can afford." He says he would tell his staff, "if you can't solve [a customer's problem] on the phone, go fix it in their home."
BVU's initial fiber deployment linked local government and school buildings. According to a study done at that time, this yielded annual savings of $156,000. Today, says Lane, some connections between local schools are operating at data rates as high as 100 Mbps to 1 Gbps. The school's fiber links, he says, have enabled testing and other applications that could not be supported by the T-1 links on which they previously relied.
In studying the role of municipalities in broadband infrastructure deployment, it is important to remember that municipalities act with a public motive and not a profit motive. Municipalities invest in schools, roads, hospitals, senior centers, marinas, airports, and convention centers, all assets that positively differentiate one community from another.
Critics also charge that municipalities only succeed due to tax exemptions and subsidies -- but Florida municipalities return as much, if not more, funds to public treasuries that private telecom firms. And as for subsidies -- well, incumbents themselves have received direct subsidies of nearly $390 million in the last five years to provide service in Florida.
While critics charge that municipalities "crowd out" private investment, the reality in Florida shows that where municipalities invest in broadband, there are more private providers of broadband services. Municipalities frequently sell broadband services to private communications firms, and the result is a more competitive and symbiotic environment that benefits both consumers and the private sector.
I’m very familiar with many government owned telecom operations throughout the world, over many years, and across many different forms of government, and I can tell you that governments generally do not subsidize publicly owned telecommunications. They milk telecommunications - these systems generate a lot of revenue.
The propaganda says Network Neutrality is about treating every packet exactly the same, but the Internet has never done that. The propaganda says that Network Neutrality is about regulating the Internet, but we know that the Internet exists thanks to the government's ArpaNet, and subsequent wise government regulation.
Look who's calling for regulation anyway! The only reason telcos and cablecos exist is that there's a whole body of franchises and tariffs and licenses and FCCs and PUCs keeping them in business.