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 Nulty on Building Your Network the Vermont Way
This is a transcription of the speech Nulty gave at the 2008 Broadband Properties Summit. Nulty describes the history of the Burlington efforts before and after he joined to build their fiber-to-the-home system. He talks about incumbent obstructionist efforts, the role of consultants, and the economical questions they considered before building.
He goes on to discuss why FTTH is practical in rural areas - and less expensive than most claim. Finally, he frankly discusses some of the tensions involved with running community networks when they are a city department (as opposed to a utility that may be at arm's length or a nonprofit).