The open access network in Ammon, Idaho, has been celebrated as visionary and viewed as a potential model for other communities seeking competitive local Internet access markets. A bill in the state legislature, however, aims to restrict local communities' ability to reproduce the Ammon Model, or any other publicly owned network, by imposing new restrictions on local efforts.
Removing a Local Funding Option
H 490, introduced by Rep. Ron Mendive from Coeur d'Alene, states specifically that local governments have the authority to take the necessary steps to develop Internet networks and to offer services to the general public. Provisions in the bill that dictate how projects are financed, operated, and managed, however, transform the bill into a "muni killer" says Bruce Patterson, Ammon's technology director.
In a recent Idaho Business Review article (subscription required), Patterson described the language of H 490:
“On its face, it claims to authorize cities to have the authority to finance, build, and operate a communications network and offer a communications service, but each of the restrictions that follow make it impossible for a city to actually do those things. It is like telling your child: ‘Sure, you can play outside, just don’t leave the house.'”
Large, national Internet service providers have millions of dollars of capital to invest in new infrastructure wherever they see a business case to do so. The situation is different for local governments interested in developing fiber optic infrastructure when national companies concentrate investment elsewhere. Places like Ammon have had to think creatively to fund necessary projects. By using local improvement...Read more