Alex Marshall, Senior Fellow at the Regional Plan Association in New York City, recently asked why more cities aren't building fiber-optic broadband networks. The subtitle: "Don't wait to find out if Google will install broadband in your city."

He correctly notes this is not a new argument - cities have run utilities for decades (and been attacked for it regularly throughout).

Infrastructure is one of the primary ways that towns, cities and states can make themselves more competitive. Build the right thing at the right time, and new residents, jobs and businesses will come. But this terrain is rife with strife. A century ago, towns and cities started public power companies, and saw private power companies resist such efforts in courts and with legislation. Today many of these public power companies are doing quite well, thank you very much, as exemplified by the Los Angeles Department of Water and Power and others in small towns.

This is not your standard argument for cities to start building networks - Alex makes some novel points and the short column is well worth the full read.

We occasionally look in on Seattle's broadband discussions because they are the largest city in the U.S. in which there is something approaching a serious discussion about a publicly owned community fiber network. They have a mayoral candidate who makes it a high priority and their Chief Technology Officer, Bill Schrier, both gets it and has an excellent staff that understands the benefits of such a network.

Glenn Fleishman has just interviewed Bill Schrier about the network and subsequently discussed the public need for broadband in specific neighborhoods due to extreme market failure. I like Glenn's style - he asks difficult questions and pushes for real answers. That said, I still want to push back on one of his statements because I think it instructive:

Government is often criticized for eliminating competition, inefficiently providing private services, and removing the profit motive. However, market failures are often where governments are asked or begged to step in, and, when accomplished correctly, can provide new opportunities for private enterprise.

Glenn is absolutely right both in capturing some of the criticisms leveled at public networks as well as noting that publicly owned broadband tends to occur in the most difficult environments. Contrary to telco rhetoric, local government officials tend not to want to jump into telecommunications efforts unless they see it as vital for the community. They are busy enough and these networks take years of planning, public hearings, and lots of loud attacks from the very companies that refuse to build the needed networks.

But look at the first two items that Glenn notes government is accused of: eliminating competition and inefficiently providing services. How is it that it can do both? Governments cannot coerce people into using the network and federal regulations prevent the local government from abusing its authority over the rights-of-way for the public network. Local governments can use untaxable bonds but private companies get depreciation, tax incentives, and can cross-subsidize from the nearby communities where they charge monopoly prices.

As for removing the profit motive - this is hardly a criticism. Infrastructure should not be controlled by any entity with a profit motive - it is the foundation of all other markets. If...