In hindsight, KPN [a Dutch telephone company] made a mistake back in 1996. We were not too enthusiastic to be forced to allow competitors on our old wireline network. That turned out not to be very wise. If you allow all your competitors on your network, all services will run on your network, and that results in the lowest cost possible per service. Which in turn attracts more customers for those services, so your network grows much faster. An open network is not charity from us, in the long run it simply works best for everybody.
North Carolina and Broadband as Infrastructure
We dedicated a lot of coverage to Time Warner Cable's purchasing legislation to handicap communities from building competitive networks. Kara Millonzi, from the University of North Carolina School of Government, examined the new law and made a potentially interesting point.
Communities have a steep mountain to climb to build a self-financing community network in the state but if a community wanted to treat broadband infrastructure like the roads they manage, the law may not impact them.
As stated above, S.L. 2011-84 imposes some significant limitations on a municipality’s authority to provide cable and Internet services. With some exceptions, the limitations apply to a “city-owned communications service provider.” A city-owned communications service provider is defined as:
- a city
- that provides cable, video programming, telecommunications, broadband, or high-speed Internet access service (collectively, communication services)
- directly, indirectly, or through interlocal agreement or joint agency
- to the public
- for a fee
- using a wired or wireless network (communications network).
This definition is important because the new limitations only apply to municipalities that meet all of its elements. In particular, the Act’s provisions only apply to a municipality that provides the listed services “for a fee.” That means that the requirements do not apply to any municipality that provides the above-listed communication services for free to the public. Many local governments provide free Wi-Fi service in their downtown or other central business areas. (In fact, I am taking advantage of Town of Carrboro’s free Wi-Fi as I draft this post.) If a municipality uses its unrestricted general fund revenue to finance this service, or any other communications services, it is not subject to the new Act’s provisions. (Note that many local governments actually offer this service by taking advantage of excess capacity on their internal broadband networks.)
Though it is an extreme long shot, it would be fascinating to see a community build a network without charging a direct fee to access. It would also be fun to see Time Warner Cable hoisted on their own petard after pushing such self-serving and harmful-to-the-public legislation through an incredibly ignorant legislature.