In the case of muni systems, which are not-for-profit enterprises, one measure of “success” is defined as the level of their “take rate” – that is, the percentage of potential subscribers who are offered the service that actually do subscribe. Nationwide, the take rates for retail municipal systems after one to four years of operation averages 54 percent. This is much higher than larger incumbent service provider take rates, and is also well above the typical FTTH business plan usually requiring a 30-40 percent take rate to “break even” with payback periods.
City on Solid Ground in Lawsuit
Following the TDS-initiated lawsuit against the city of Monticello, Minnesota, I wrote the this op-ed to offer some outside perspective. This is a snippet:
At a time when most of the United States has slower, more expensive Internet connections than our overseas competitors, communities across the country have responded with initiatives to build the infrastructure of the 21st century. And then they have been sued.
Monticello is hardly the first community where an incumbent provider believes it alone should decide how that community connects to the world. Lafayette, a conservative city in Louisiana, spent several years in the courts before it could break ground on a publicly owned citywide network. Cajun culture did not allow for giving up on the project. Nice Minnesotans should do no less.
Monticello, too, must hold true to its citizens, who in last year’s referendum voted by almost 3 to 1 for a modern telecommunications network. That referendum wasn’t a request that the city do something; it was a mandate from the people to their government to build a fiber network to every home and business in the town.

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