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.
Tim Danahey and Chris Mitchell Talk Muni's
Tim Danahey recently brought Chris Mitchell on his show to talk about municipal networks and their role in preserving network neutrality. Tim is a fan of the Institute for Local Self-Reliance and our work.
Tim is a great interviewer because he is up on the issue and politically savvy. From the show website:
If President Obama or the FCC don’t stand up for the people, the open internet will soon end. If you want to get your internet voice out to the world, you may have to pay for the priority. Furthermore, you may have to out-bid well-funded corporate internet users. The President shows no sign of upholding his 2007 promise to sustain net neutrality and his appointee to head the FCC is a communication industry insider. What can the people do? First, try to get the President to keep his promise. If he won’t, then many communities in the United States are setting-up community-owned broadband service that is up to 40 times faster than corporate-owned internet service provides. It’s also less expensive and it is becoming a powerful economic development tool for communities that have already implemented it. In fact, it’s so good that Koch-funded ALEC is trying to shut it down. But we can do it. Here’s how.