While Cox Communications can make rate decisions in a private conference room several states away, Lafayette conducts its business in an open forum, as it should. While Cox can make repeated and periodic requests for documents under the Public Records Law, it is not subject to a corresponding obligation – a “show me your plans, but don’t dare ask to see mine” mentality. Louisiana law limits the ability of a governmental enterprise to advertise, but nothing prevents the incumbent providers from spending millions of dollars in advertising campaigns. An important focal point of the legal challenges involved the right or ability of Lafayette to pledge assets of the utilities system as security for the bonds, something that the private corporations do all of the time without the slightest scrutiny. To be sure, the “playing field is not level,” but it is the government which is disadvantaged, not the private companies.
Community Broadband Bits 28 - Bruce Kushnick
If you think the United States cannot afford to take a fiber optic cable to just about every home in the country, you might be surprised to find out that we have already paid for it. We just haven't received it. Our first podcast guest in 2013, Bruce Kushnick of the New Networks Institute, explains the $300 billion ripoff.
Bruce and I discuss how the big telephone companies promised to build a fiber optic Internet in return for being allowed to increase their prices. This brings us to Kushnick's Law: "A regulated company will always renege on promises to provide public benefits tomorrow in exchange for regulatory and financial benefits today."
The telephone companies raised their prices, but decided to give the proceeds out to shareholders rather than invest in the promised networks. We got higher prices and DSL rather than the fiber optic networks we were promised. Our regulators largely failed us, in part because the only people who pay attention to Public Utility Commissions are the industries regulated by them and the occasional underfunded consumer advocate.
This is a very good introduction to why we all pay far too much for services that are too slow and insufficiently reliable.
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Listen to previous episodes here.
Thanks to mojo monkeys for the music, licensed using Creative Commons.