Municipal systems do not “crowd out” private providers any more than the New York City Subway “crowds out” private taxi cabs and car services. To the contrary, studies and anecdotal evidence repeatedly show that where municipal systems take on the expensive task of building network infrastructure, the number of private providers increases.
Imagine if Borders and Barnes & Noble, claiming it was killing their book sales, asked lawmakers to ban cities from building libraries. The legislators would laugh them out of the State House. Yet the same thing is happening right now with respect to Wi-Fi and other municipal broadband plans, and it is being taken all too seriously. In fact, although it is almost universally acknowledged that broadband access is essential to economic growth and education, phone and cable companies are lobbying furiously to prohibit municipalities from providing free or discounted broadband to their residents.
Vested interests have been put on notice, [Harold] Feld said. "I don't want the incumbents to die," he said. "I just want them to have to work for a living. The act sends a strong message to carriers: it's not about you any more."