I remain concerned that when cities and local governments are prohibited from investing directly in their own broadband networks, citizens may be denied the opportunity to connect with their nation and improve their lives. Local economies will suffer as a result, and the communities’ ability to effectively address education, health, public safety, and other social issues will be severely hampered. ... I fear that preventing local governments from investing in broadband is counter-productive and will impede the nation from accomplishing the Plan’s goal of providing broadband access to every American and community anchor institution.
Community Broadband Bits 26 - Josh Wallace, Palo Alto
This week, Josh Wallace from the City of Palo Alto Utilities joins us to talk about the City's dark fiber network for episode 26 of the Community Broadband Bits Podcast. Josh describes how the dark fiber network connects businesses, offering incredibly high capacity connections at affordable flat rate pricing.
The utility charges an upfront fee to make a dark fiber connection, which means that nearly all the ongoing revenues are net income. It is a very good business to be in, both for the utility and local businesses that would have to pay much more for their connections if the City did not offer the dark fiber option.
Despite its success in dark fiber, Palo Alto is not poised to offer any lit services -- which would dramatically increase the potential number of customers. The main reason appears to be the difficulty of competing with the nation's largest cable company, Comcast. Its massive footprint allows Comcast to engage in predatory pricing and other anti-competitive tactics to ensure competitors have a miserable life. Though some cities, Chattanooga especially, have done very well competing against Comcast (one of the nation's most hated corporations year after year), other communities are simply unwilling to engage in what can be a brutal fight.
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Listen to previous episodes here.
Thanks to mojo monkeys for the music, licensed using Creative Commons.