Version: 2008

Comments on: Cities brace for broadband war

Across the U.S., cities are planning tax-funded broadband networks. But they face fierce resistance from Bells and cable operators.

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Missing the Point
by May 2, 2005 4:02 PM PDT
Greetings All,

I am in Lafayette Louisiana working on bringing Fiber here... One thing that seems to be missing here in the conversation of Municiple vs. Private Business is - WE TRIED PRIVATE BUSINESS - we begged Bell South and Cox Cable for a YEAR! No go, the only thing they told us is that they would bring "FIBER TO THE NEIGHBORHOOD" in the next 10 years. This is just not acceptable.

Municiple is the only way to go for us, other Cities may have the option of having a private company who wants to do this for them and sees the opportunity. We have TERRIBLE broadband access now, and the incumbants have been terribly slow to respond and slow to upgrade services.

Hope that helps in the discussion.

THANKS
Stephen Handwerk
LafayetteComingTogether.com
Reply to this comment
Ever run a business? Sorry, big rant.
by May 1, 2008 1:54 PM PDT
I read most of the comments of the article and I hear repeatedly that telcoms and cable won't come into thier area blah blah blah. Wonder how many have ever tried to run thier own busines?

Why make uninformed comments? Corperations grow into areas steadily over time. They aren't in the business of going broke trying to build out areas that don't offer a good ROI. With growing, any business must still keep it's level of service high and the cost of doing business with connections to other networks, service rollouts and network maintenance cost more the bigger you get.

I'm also sick of hearing that TV, and broadband are like public utilities when they are not. Just think of all the good things you could do if you didn't sit your lazy @$$ down and watch more TV and surf more porn.

You might even be able to teach underprivledged kids how to get a leg up, get some discipline, and get somewhere, instead of giving them a way to spend more time on thier @$$es. Don't wonder why Americans are the fatest people on the planet.

Please don't kid anyone when you say it's for edjucation unless you teach them how to use a pc safely and correctly- they'll be playing games or downloading/sharing music and spreading viruses causing the network to slow down worse than everyone coming home to check thier email.

Basically anyone that stands to make $$$ of this project will try to argue every point in thier favor.

I'm not buying into any of it, I won't be paying for it and those in office will be wise to spend thier time fixing the real problems the citizens are complaining about instead of how to make America into the new socialist republic. I mean let's all think really hard about what our government is elected to do. If they can't fix the current issues facing them, they'll never be able to fix something as complex as a fiber network.

//EOR
View reply
If we weigh
by May 2, 2005 4:25 PM PDT
If we weigh the evil of the telecoms against the evil of the municipalities, I'll take the municipalities andy day. We can vote those the municipality reps out.
Reply to this comment
If we weigh
by May 2, 2005 4:25 PM PDT
If we weigh the evil of the telecoms against the evil of the municipalities, I'll take the municipalities andy day. We can vote those the municipality reps out.
Reply to this comment
Re: What about BPL
by May 2, 2005 4:30 PM PDT
Jim Weil discussed BPL in Menlo Park, CA. That system had been shut down some time ago. This article provides details:

http://www.arrl.org/news/stories/2004/10/21/100/

BPL is not shut down in all of the cities where it has been tried, though.

For more information on BPL, see http://www.arrl.org/bpl

Ed Hare
Reply to this comment
BPL alive and kicking
by denisdubois May 5, 2005 8:05 AM PDT
BPL is being deployed across the country in locations where community leaders feel their citizens are being under-served by the major carriers. Energy Priorities (energypriorities.com) blogged recent coverage of broadband initiatives, including BPL, at http://energypriorities.com/ .
Re: What about BPL
by May 2, 2005 4:30 PM PDT
Jim Weil discussed BPL in Menlo Park, CA. That system had been shut down some time ago. This article provides details:

http://www.arrl.org/news/stories/2004/10/21/100/

BPL is not shut down in all of the cities where it has been tried, though.

For more information on BPL, see http://www.arrl.org/bpl

Ed Hare
Reply to this comment
BPL alive and kicking
by denisdubois May 5, 2005 8:05 AM PDT
BPL is being deployed across the country in locations where community leaders feel their citizens are being under-served by the major carriers. Energy Priorities (energypriorities.com) blogged recent coverage of broadband initiatives, including BPL, at http://energypriorities.com/ .
Pipe dreams
by Chung Leong May 2, 2005 4:48 PM PDT
Your scheme simply will not work.

First, no sane company would want to be a business partner of a local government, knowing that it would evitably be the first get squeezed when city hall needs more money. If you a politican what would you choose: (a) raise taxes, (b) cut social service, or (c) extract more money from a few companies, who end up taking the blame for higher fees? Even in the unlikely event that the project is successful, there is no guarantee that it would continue. Newly elected official could pull the plug out of party politics. A Republican might want to please Christian fundamentalists who object to the city's involvement in spreading smut. A Democrat might might make unreasonable change to the cost structure because he was compaigning against corporate greed. And there's always Joe Citizen, who might put a completely uneconomical proposal on the ballot. Basically, it's a no-win situation.

Second, a multitier system is inefficient. The system is by design inefficient already, building out the area where the utilization is low. Adding in middlemen to the equation would only it worse. The competition that you mentioned would yield little when the companies have only one supplier--the government--with whom they have zero bargaining power.

Third, service would be terrible. When something goes wrong, the companies will blame the government and the companies will blame the government.

Fourth...I could go on but that's really beating a dead horse.
Reply to this comment
Negative attitude
by fredmenace July 13, 2005 3:33 AM PDT
Applying your attitude to corporate businesses, you'd have a pretty sorry state of affirs where consumers frequently get screwed over with overly high prices, horrible customer service, poor set of choices designed to maximize profit rather than give consumers what they want, and a multitude of other problems. Oops, that's what we already have!
Pipe dreams
by Chung Leong May 2, 2005 4:48 PM PDT
Your scheme simply will not work.

First, no sane company would want to be a business partner of a local government, knowing that it would evitably be the first get squeezed when city hall needs more money. If you a politican what would you choose: (a) raise taxes, (b) cut social service, or (c) extract more money from a few companies, who end up taking the blame for higher fees? Even in the unlikely event that the project is successful, there is no guarantee that it would continue. Newly elected official could pull the plug out of party politics. A Republican might want to please Christian fundamentalists who object to the city's involvement in spreading smut. A Democrat might might make unreasonable change to the cost structure because he was compaigning against corporate greed. And there's always Joe Citizen, who might put a completely uneconomical proposal on the ballot. Basically, it's a no-win situation.

Second, a multitier system is inefficient. The system is by design inefficient already, building out the area where the utilization is low. Adding in middlemen to the equation would only it worse. The competition that you mentioned would yield little when the companies have only one supplier--the government--with whom they have zero bargaining power.

Third, service would be terrible. When something goes wrong, the companies will blame the government and the companies will blame the government.

Fourth...I could go on but that's really beating a dead horse.
Reply to this comment
Negative attitude
by fredmenace July 13, 2005 3:33 AM PDT
Applying your attitude to corporate businesses, you'd have a pretty sorry state of affirs where consumers frequently get screwed over with overly high prices, horrible customer service, poor set of choices designed to maximize profit rather than give consumers what they want, and a multitude of other problems. Oops, that's what we already have!
It's not competition when others WON'T do it.
by laurabill May 2, 2005 6:25 PM PDT
Comcast and Verizon BOTH refuse to offer me service when I live less than 3 miles outside a served town. In fact, I have an inactive Comcast line at my mailbox they won't turn on. Yet my power co-op and my county government say they won't do co-op or tax-financed broadband because "it interferes with private companies offering that service." That's the problem - they AREN'T and they WON'T. So who is my power co-op and county government trying to serve - me or the big companies? It's pretty easy to see the answer. We need a new Rural Electrification Agency for the 21st century - or I'll be stuck with dial-up forever!
Reply to this comment
It's not competition when others WON'T do it.
by laurabill May 2, 2005 6:25 PM PDT
Comcast and Verizon BOTH refuse to offer me service when I live less than 3 miles outside a served town. In fact, I have an inactive Comcast line at my mailbox they won't turn on. Yet my power co-op and my county government say they won't do co-op or tax-financed broadband because "it interferes with private companies offering that service." That's the problem - they AREN'T and they WON'T. So who is my power co-op and county government trying to serve - me or the big companies? It's pretty easy to see the answer. We need a new Rural Electrification Agency for the 21st century - or I'll be stuck with dial-up forever!
Reply to this comment
Broadband is a Public Information Utility
by May 3, 2005 2:42 AM PDT
Fellow Travellers,
I add this suggested reading to the mix: check out http://
mediacitizen.blogspot.com for more information on
corporate control of public information utilities like
broadband and dial up.

See also In These Times story on Broadband Companies
take over of the internet now going through courts that
could affect your ability to go anywhere and see anything
http://www.inthesetimes.com/site/main/article/2077/

I would much rather the local public government run cable
internet connections than corporations. At least with the
government I get a vote. When was the last time you
organized a shareholder meeting of a corporation to make
a change in their by laws? Nada zip never.

And in the interest of information equal to power, power
should be distributed as far and wide as Jefferson possible.

That means the corporate control and greed should now
and public utilities should either mandate broad public
networks at low cost like in Korea ( where they have 10 x
the through put at $20 a month -- come on Comcast--
Korea? ) or cities should take over cable, build cable and
wireless and run them.

To sum up: corporations involved in high speed internet
are now seeking to change the laws and make the internet
just like cable tv and tv where you have no say about what
you see and a range of viewing options that 300 channels
deep and no different from each other.

Search for Cable & Telecommunications Association v.
Brand X Internet Services to see more on this.

2. Internet high speed access is a public right and should
be available free or at low cost to every citizen.

3. Cities and states should work together to create
interstate information highways that give citizens, not
corporations-- control over internet activities.

Best to all.

Tim
Reply to this comment
Hello!!!!!
by bobanavrin May 3, 2005 7:50 PM PDT
Tim,
You honestly can't tell me that you trust the government to do a better job at providing hi-speed broadband than private industry ?
2)What article in the constitution gives us this broadband internet right?
3)South Korea is a much smaller country than the USA,that is why they are able provide hi speed broadband to more of it's citizens.
View reply
Broadband is a Public Information Utility
by May 3, 2005 2:42 AM PDT
Fellow Travellers,
I add this suggested reading to the mix: check out http://
mediacitizen.blogspot.com for more information on
corporate control of public information utilities like
broadband and dial up.

See also In These Times story on Broadband Companies
take over of the internet now going through courts that
could affect your ability to go anywhere and see anything
http://www.inthesetimes.com/site/main/article/2077/

I would much rather the local public government run cable
internet connections than corporations. At least with the
government I get a vote. When was the last time you
organized a shareholder meeting of a corporation to make
a change in their by laws? Nada zip never.

And in the interest of information equal to power, power
should be distributed as far and wide as Jefferson possible.

That means the corporate control and greed should now
and public utilities should either mandate broad public
networks at low cost like in Korea ( where they have 10 x
the through put at $20 a month -- come on Comcast--
Korea? ) or cities should take over cable, build cable and
wireless and run them.

To sum up: corporations involved in high speed internet
are now seeking to change the laws and make the internet
just like cable tv and tv where you have no say about what
you see and a range of viewing options that 300 channels
deep and no different from each other.

Search for Cable & Telecommunications Association v.
Brand X Internet Services to see more on this.

2. Internet high speed access is a public right and should
be available free or at low cost to every citizen.

3. Cities and states should work together to create
interstate information highways that give citizens, not
corporations-- control over internet activities.

Best to all.

Tim
Reply to this comment
Hello!!!!!
by bobanavrin May 1, 2008 1:54 PM PDT
Tim,
You honestly can't tell me that you trust the government to do a better job at providing hi-speed broadband than private industry ?
2)What article in the constitution gives us this broadband internet right?
3)South Korea is a much smaller country than the USA,that is why they are able provide hi speed broadband to more of it's citizens.
View reply
Tax dollas and pay for the service!
by May 3, 2005 11:37 AM PDT
I think it's fundamentally wrong to take tax-payer dollars to build a fiber network for net access and then turn around and charge the same people who paid for building it a monthly fee to use it. It shouldn't be allowed.

There are plenty of commercial companies who don't take your tax money and then charge you for using thier service. Plus those same companies also inject millions into local communities.

What if I had a different service- do I still have to pay the tax?

The bottom line is this isn't something government should do. They regulate those business who provide that, which is direct conflict of interest.

I'm suprised the so-called citizen's are even considering this. I wonder which one's have the gov's ear.

sad.
Reply to this comment
Building and maintaining are 2 different costs
by jluchford May 4, 2005 6:05 AM PDT
Taxes would pay for building the network and SHOULD eventually go away. Example are the Toll Turnpikes which are paid for by tolls. Some Tolls were intended to pay for the construction of highways then become public roads that are maintained by taxes. After they were paid for, many were kept as Toll roads to as a way of keeping taxes down.

Internet would be the same way. After costs were taxed, maintaining the networks would be a small tax. OR they COULD justify it as a revenue maker...that would have to go to voters.

If they billed a high price to access the broadband, then they would intend to directly compete for SAME people the high priced broadband companies do now. There is NO incentive for broadband companies to LOWER prices to get a few dollars from low-income people.
View all 2 replies
Think about it
by May 5, 2005 9:42 AM PDT
It's not the federal government that is putting in these projects, it is local government doing them. In putting them in, they would use some local tax dolars, and pass bond issues to borrow the majority of the funds to build the infrastructure. Initially, the dolars that you would spend to pay for the service would go to pay down the debt incurred to build the fiber networks. The beauty of the local cities owning the utility is that after the debt is paid off, the money would go into the cities general fund to offset the amount that you have to pay in taxes, therefore lowering that property taxes that you would pay by generating revenue off of a service that you would be paying someone for, anyway. The jist is that in the long run, publically owned utilities help to keep property taxes in check for home owners. All you have to do is to take two comparatively sized towns, one with a utility and one with out and look at their tax askings and you will see the advantage that the city with the utility has pretty quickly.
View all 2 replies
Why is it up to you?
by fredmenace July 13, 2005 5:05 AM PDT
Don't you think that should be up to the members of each community? Maybe in YOUR city you would lobby for that not to happen, but in ANOTHER city, maybe most people would disagree with you. They might well see it as a wise investment in their future, just like good roads and schools.
tax dollars and pay for the service
by johngaltcigars March 29, 2006 1:09 PM PST
are you kidding. you can't be serious. you are right about one thing. that is that the taxpayers did pay for this technology, but then our government representatives gave it away to corporate america. you know, the ones who are able to make the big contributions and buy what we the tax payers provided. you do understand, i hope, that our tax dollars go to the universities, military, research facilities, etc. we, the tax payers, pay for all of it. john galt where the **** are you?????????????????
Tax dollas and pay for the service!
by May 3, 2005 11:37 AM PDT
I think it's fundamentally wrong to take tax-payer dollars to build a fiber network for net access and then turn around and charge the same people who paid for building it a monthly fee to use it. It shouldn't be allowed.

There are plenty of commercial companies who don't take your tax money and then charge you for using thier service. Plus those same companies also inject millions into local communities.

What if I had a different service- do I still have to pay the tax?

The bottom line is this isn't something government should do. They regulate those business who provide that, which is direct conflict of interest.

I'm suprised the so-called citizen's are even considering this. I wonder which one's have the gov's ear.

sad.
Reply to this comment
Building and maintaining are 2 different costs
by jluchford May 4, 2005 6:05 AM PDT
Taxes would pay for building the network and SHOULD eventually go away. Example are the Toll Turnpikes which are paid for by tolls. Some Tolls were intended to pay for the construction of highways then become public roads that are maintained by taxes. After they were paid for, many were kept as Toll roads to as a way of keeping taxes down.

Internet would be the same way. After costs were taxed, maintaining the networks would be a small tax. OR they COULD justify it as a revenue maker...that would have to go to voters.

If they billed a high price to access the broadband, then they would intend to directly compete for SAME people the high priced broadband companies do now. There is NO incentive for broadband companies to LOWER prices to get a few dollars from low-income people.
View all 2 replies
Think about it
by May 5, 2005 9:42 AM PDT
It's not the federal government that is putting in these projects, it is local government doing them. In putting them in, they would use some local tax dolars, and pass bond issues to borrow the majority of the funds to build the infrastructure. Initially, the dolars that you would spend to pay for the service would go to pay down the debt incurred to build the fiber networks. The beauty of the local cities owning the utility is that after the debt is paid off, the money would go into the cities general fund to offset the amount that you have to pay in taxes, therefore lowering that property taxes that you would pay by generating revenue off of a service that you would be paying someone for, anyway. The jist is that in the long run, publically owned utilities help to keep property taxes in check for home owners. All you have to do is to take two comparatively sized towns, one with a utility and one with out and look at their tax askings and you will see the advantage that the city with the utility has pretty quickly.
View all 2 replies
Why is it up to you?
by fredmenace July 13, 2005 5:05 AM PDT
Don't you think that should be up to the members of each community? Maybe in YOUR city you would lobby for that not to happen, but in ANOTHER city, maybe most people would disagree with you. They might well see it as a wise investment in their future, just like good roads and schools.
tax dollars and pay for the service
by johngaltcigars March 29, 2006 1:09 PM PST
are you kidding. you can't be serious. you are right about one thing. that is that the taxpayers did pay for this technology, but then our government representatives gave it away to corporate america. you know, the ones who are able to make the big contributions and buy what we the tax payers provided. you do understand, i hope, that our tax dollars go to the universities, military, research facilities, etc. we, the tax payers, pay for all of it. john galt where the **** are you?????????????????
blinded by ideology
by May 4, 2005 10:51 AM PDT
I'm struck by the extent to which the opposition's ideological and absolute faith in free markets and contempt for government blinds them from reason and prevents them from recognizing those instances where a government "of by and for the people" can come up with practical solutions to problems left unresolved (and indeed, even created) by the markets "invisible hand".

Although market forces often respond effectively to meet societal demands, the profit potential for a service/commodity does not always correspond with its societal demand.

The development of utility services serves to illustrate this point. As Americans, we agreed early on that telephone service should be universal; rural and urban customers should have equal access to quality service. In pursuit of this goal, as a society we agreed to a system of cross-subsidization whereby low-cost urban residents subsidized their relatively high-cost rural counterparts and business customers subsidized residential users.

Now perhaps you believe that this sort of government intervention was unnecessary and that residents and rural users should have been forced to pay what the market required. I would argue that we, as a nation, benefitted from this service universality and would have been far worse the wear had our "red states" remained isolated from their lack of a connection to the outside world.

Those of you that oppose regulation requiring the ILECs to roll out advanced services to all residents in their service territories AND oppose any form of municipal entry are clearly blinded by your market ideology. You need to give some ground and be reasonable.

Recognize that monopolistic utility behemoths providing telecom services are fundamentally different than lemonade stands selling juice in perfectly competitive markets. Although, we can start buying lemonade from "Stand B" (or C, or D...) when "Stand A" becomes too expensive, as consumers, we are invidually powerless over the utilities who (if unregulated) decide who will receive services and how much they will pay.
Reply to this comment
Excellent points
by fredmenace July 13, 2005 5:08 AM PDT
I think what it boils down to is that some people see that the only reason for corporations to exist is to enrich the pocketbooks of their owners (and thus that any non-corporate competition to those companies is bad), whereas other people see goods and services to be provided for the benefit of the people, and want to find good ways to deliver those benefits, which might be by corporations, government, or both, as seems appropriate in the situation.
blinded by ideology
by May 4, 2005 10:51 AM PDT
I'm struck by the extent to which the opposition's ideological and absolute faith in free markets and contempt for government blinds them from reason and prevents them from recognizing those instances where a government "of by and for the people" can come up with practical solutions to problems left unresolved (and indeed, even created) by the markets "invisible hand".

Although market forces often respond effectively to meet societal demands, the profit potential for a service/commodity does not always correspond with its societal demand.

The development of utility services serves to illustrate this point. As Americans, we agreed early on that telephone service should be universal; rural and urban customers should have equal access to quality service. In pursuit of this goal, as a society we agreed to a system of cross-subsidization whereby low-cost urban residents subsidized their relatively high-cost rural counterparts and business customers subsidized residential users.

Now perhaps you believe that this sort of government intervention was unnecessary and that residents and rural users should have been forced to pay what the market required. I would argue that we, as a nation, benefitted from this service universality and would have been far worse the wear had our "red states" remained isolated from their lack of a connection to the outside world.

Those of you that oppose regulation requiring the ILECs to roll out advanced services to all residents in their service territories AND oppose any form of municipal entry are clearly blinded by your market ideology. You need to give some ground and be reasonable.

Recognize that monopolistic utility behemoths providing telecom services are fundamentally different than lemonade stands selling juice in perfectly competitive markets. Although, we can start buying lemonade from "Stand B" (or C, or D...) when "Stand A" becomes too expensive, as consumers, we are invidually powerless over the utilities who (if unregulated) decide who will receive services and how much they will pay.
Reply to this comment
Excellent points
by fredmenace July 13, 2005 5:08 AM PDT
I think what it boils down to is that some people see that the only reason for corporations to exist is to enrich the pocketbooks of their owners (and thus that any non-corporate competition to those companies is bad), whereas other people see goods and services to be provided for the benefit of the people, and want to find good ways to deliver those benefits, which might be by corporations, government, or both, as seems appropriate in the situation.
It's this simple.
by Remo_Williams May 4, 2005 11:28 AM PDT
If we were talking about a ROAD, no one in their right mind would expect a contractor to just build one and operate a toll at either end. This is infrastructure, and we expect our government to provide this for exactly these reasons:
-preventing profiteering
-providing equitable access to all citizens
-eliminating any possible redundancy

The same standard applies to water, gas, and electric. So why is information different, just because it has a basis in entertainment? Because a cable company once strung line on government-owned telephone poles (yes, those poles that Verizon claims they own are actually gov't property leased to them)?

Local and state governments have one power that trumps all of this: eminent domain. Condemn the telephone poles and hire a contractor to string fiber. Lease connectivity to the fiber backbone to anyone. The leasing pays for the build-out. It's that simple.

I mean, Pennsylvania has to ask VERIZON to build infrastructure? It's so nice to see that your elected officials still have nice, easy to read price tags. Anyone voting for the cowards who passed that legislation deserve dialup forever. Losers.

-Remo
Reply to this comment
Best post in this thread
by fredmenace July 13, 2005 5:10 AM PDT
Pretty much encapulates how ridiculous this whole situation is.
It's this simple.
by Remo_Williams May 4, 2005 11:28 AM PDT
If we were talking about a ROAD, no one in their right mind would expect a contractor to just build one and operate a toll at either end. This is infrastructure, and we expect our government to provide this for exactly these reasons:
-preventing profiteering
-providing equitable access to all citizens
-eliminating any possible redundancy

The same standard applies to water, gas, and electric. So why is information different, just because it has a basis in entertainment? Because a cable company once strung line on government-owned telephone poles (yes, those poles that Verizon claims they own are actually gov't property leased to them)?

Local and state governments have one power that trumps all of this: eminent domain. Condemn the telephone poles and hire a contractor to string fiber. Lease connectivity to the fiber backbone to anyone. The leasing pays for the build-out. It's that simple.

I mean, Pennsylvania has to ask VERIZON to build infrastructure? It's so nice to see that your elected officials still have nice, easy to read price tags. Anyone voting for the cowards who passed that legislation deserve dialup forever. Losers.

-Remo
Reply to this comment
Best post in this thread
by fredmenace July 13, 2005 5:10 AM PDT
Pretty much encapulates how ridiculous this whole situation is.
OK, make a deal
by May 6, 2005 6:47 AM PDT
This buildout will undoubtedly be better deployed by private industry, but they need a nudge. Let local governments say, "OK, we'll give you (XXX) months. Get it done, or we will." I've lived in mostly rural areas most of my life, and getting broadband is ridiculously difficult, especiall in veiw of the fact that I have been willing to pay dearly for it. I currently have a 7 Kbps connection that I pay nearly $100 per month for, and glad to have it!
Reply to this comment
OK, make a deal
by May 6, 2005 6:47 AM PDT
This buildout will undoubtedly be better deployed by private industry, but they need a nudge. Let local governments say, "OK, we'll give you (XXX) months. Get it done, or we will." I've lived in mostly rural areas most of my life, and getting broadband is ridiculously difficult, especiall in veiw of the fact that I have been willing to pay dearly for it. I currently have a 7 Kbps connection that I pay nearly $100 per month for, and glad to have it!
Reply to this comment
for more info on Lafayette Louisiana debate
by May 7, 2005 9:12 AM PDT
For links to all sites debating municipal broadband in Lafayette Louisiana

www.gumbofile2.blogspot.com
Reply to this comment
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