Tag: "public v private"

Posted September 8, 2009 by christopher

The second line of Rachel Carter's story at TimesCall.com captures the reason we care about community broadband networks:

But others argued that it’s not about whether the city will jump into the cable or Internet business; it’s about giving the city options and giving voters a choice.

Longmont, Colorado, will have a question on its November ballot asking whether the city should have the right to offer retail broadband services. This referendum is a requirement of Colorado state law (passed in June 2005 -- more details about that law from Baller.com [pdf]) for communities that want to offer such services to their community.

A number of people spoke at the city council meeting before they unanimously voted to put the question on the ballot. Responding to some who opposed giving citizens a chance to choose, one Council Member came up with quite the apt phrase:

Councilman Sean McCoy said the Comcast representatives and Denver attorneys who spoke against the ballot question tried to “put a shadow of a doubt” on it by using “red herring” issues. “I believe the concerns are more of an issue of ’not in my monopoly’ more than anything else,” he said.

Longmont has given the private sector plenty of chances to offer the broadband that citizens want - but they have failed to meet community needs. A number of private companies have tried to use the city's assets to build a wireless network: As detailed here, Kite Networks contracted with the city in 2006 to build a wireless network but ran out of money. In 2007, Gobility gave it a shot but also ran out of money. In stepped DHB, who completed the network.

It is not clear what has happened to DHB, but this suggests that many remain dissatisfied:

All council members supported the ballot question, although Mayor Roger Lange and Councilwoman Mary Blue questioned what the city may choose to do in the future. Lange said there are some telecommunications services that the city doesn’t need to jump into, but others — such as wireless...

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Posted August 21, 2009 by christopher

Opponents of publicly owned broadband networks often hold up examples of wireless networks that did not turn out as planned -- more often than not, they ignorantly use examples of privately owned networks like Earthlink networks in Philly, Houston, or proposed privately owned networks in San Fran and Chicago.

It is true that many wireless networks (especially those using Wi-Fi) came in above projected costs and late. It is also true that this happened across all manner of network ownership types. GoMoorhead, a publicly owned Wi-Fi network in Minnesota, was recently sold to a private company - and I am working on a report about that. However, there was also a recent announcement that the privately owned wireless network being built in Burnsville, Minnesota, is behind schedule.

Frontier Communications expects to extend its Wi-Fi hot spot service to Burnsville's performing arts center this fall, but a company official admitted Friday that knitting together complete citywide coverage has gone more slowly than expected.

The phone provider for the southern part of Burnsville as well as Apple Valley, Farmington and Lakeville, Frontier had expected to have 90 percent of the city covered with a network of broadband Internet Wi-Fi hot spots by now.

But Frontier is still moving its wireless service from the south, where it kicked off service in October 2007, into the northern parts of the city.

Additionally, the public-private partnership in Minneapolis remains behind schedule (privately owned but built with substantial amounts of public money).

The problem is the technology - not the ownership. We continue to believe that the future should feature wireless as a complement to the more reliable and faster wired connections that should be available to everyone. But the more we talk to communities, the more we learn that wireless is more difficult to work with and often more expensive than expected.

Posted May 13, 2009 by christopher

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. In those areas, direct investment by municipalities is accepted and indeed often encouraged, even though private firms can (and do) build private schools, hospitals, health clubs, marinas, and conference centers that coexist with municipal infrastructure.

Posted May 7, 2009 by christopher

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.

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