The essence of the objection to municipal involved in communications is that public intervention will undermine the private sector due to the cost advantages uniquely available to governmental entities, thus creating a barrier to public entry. As we have shown, however, this objection fails in two ways: First, municipalities tend not to become involved in communications in markets characterized by effective competition; and second, where municipalities do become communications providers, private entry into the market tends to be stimulated rather than suppressed.
OpenCape Update - First Stretch Scheduled for Testing By the End of the Month
After six years in the making, the OpenCape network is soon to be delivering services. According to a Sandwich Wicked Local article, town selectmen were informed on December 6th that the Brockton-to-Plymouth stretch of the network will be activated before the end of 2012 for testing. We brought you detailed news of the $40 million project earlier this year.
Funded with a $32 million Broadband Technology Opportunity Program (BTOP) grant and $8 million from the state, county, and private venture firm CapeNet. According to the article, 200 miles of fiber are installed and 50 are in construction or are being leased. Construction was set back when Hurrican Sandy hit the east coast.
Verizon NStar crews, working on the install, were all pulled and sent to New York and New Jersey.
The news from OpenCape Chief Executive Officer Dan Vortherms was welcome. The community has been waiting patiently to tap into the improved access, economic development, and cost savings. From the article:
Selectman Frank Pannorfi said broadband might service several initiatives the town has planned for some time; alluding perhaps to South Sandwich Village and its business potential.
“We’ve been waiting for this a long time,” Pannorfi said.
A much needed data center is just beginning construction. The data center and the network will belong to the non-profit OpenCape. The purpose of the middle-mile network is to "support the economic, educational, public safety and governmental needs of the region.