ownership

The Case for Municipal Broadband

Publication Date: 
May 2, 2005
Author(s): 
Carl Kandutsch
Publication Title: 
Broadband Properties

One the goals of this site is to catalog reports, articles, and all things related to publicly owned broadband. A number of older articles about muni broadband still resonate today -- As part of its May 2005 issue, Broadband Properties offered a pro and con view of municipal networks. Carl Kandutsch, a former FCC attorney, wrote "The Case for Municipal Broadband." Other articles from that issues are also available here.

The piece generally focuses on matters of economics and law, but in an accessible manner. The threat of private, monopolistic service providers -- particularly in rural areas -- is indeed a significant motivation and reason to embrace public ownership.

He also delves into debunking specific arguments against municipal ownership and argues that publicly owned networks are at a disadvantage relative private companies:

The municipal balance sheet must then be compared with that of private firms existing actually or potentially in the relevant market, taking into account the often huge tax breaks granted to private sector communication firms, the economies of scale conferred on incumbents from ownership of pre-existing infrastructure and nationwide or international service areas, the freedom to contract with any other entity on any terms within the limits of the law and so on.

And

Moreover, whereas private firms are permitted to operate behind closed doors, municipal utilities must comply with numerous open-records requirements, and must secure public approval for all significant decisions. The level of public scrutiny under which a municipal utility operates ensures that significant operational inefficiencies will be short-lived, and that utility officials are politically accountable for their decisions.

A Public Interest Internet Agenda

Publication Date: 
August 3, 2009
Author(s): 
Media and Democracy Coalition

The Media and Democracy Coalition put together an impressive report examining a number of policy options to put communities first in telecommunications infrastructure. The report discusses the fundamental importance of broadband - noting that it enables the right to communicate. Having establishing its importance, the report notes that good policy must be well informed and goes on to make multiple recommendations.

Policy should promote competition, innovation, localism, and opportunity. Locally-owned and -operated networks support these core goals of Federal broadband policy, and therefore should receive priority in terms of Federal support. Structural separation of ownership of broadband infrastructure from the delivery of service over that infrastructure will further promote these goals.

The report also touches on other key issues - including Universal Access, a non-discriminatory Internet (network neutrality), symmetrical connections, and privacy. But the most important focus from our perspective is that of localism:

For decades, American communities — both rural and urban — have been neglected and underserved by absentee-owned networks, whose business models clearly do not work in smaller or economically challenged communities. By contrast, in the communities in which they are based, locally-owned networks are more likely than absentee-owned networks to provide rapid response to emergencies, enhanced services, and value-added, social capital benefits such as job-training, youth-mentoring, and small business incubation. In addition, local networks are less likely to outsource jobs, thereby strengthening local and regional economies, while creating more opportunities for community-based innovation and problem-solving. Federal broadband policy that prioritizes support for local networks will produce more competitive markets, consumer choice, and opportunities for innovation.

Who Will Own Minnesota's Information Highways?

Publication Date: 
June 13, 2005
Author(s): 
David Morris
Author(s): 
Becca Vargo Daggett

Competitive broadband service and pricing is within reach of most Minnesotans if anti-competitive polices and practices are removed and municipal governments build broadband infrastructure, according to a new report released today by the Institute for Local Self-Reliance (ILSR). The findings are contained in "Who Will Own Minnesota's Information Highways?", a report issued by the New Rules Project of the Institute for Local Self-Reliance.

"Minneapolis and Saint Paul have a once-in-a-lifetime opportunity to develop an affordable, high quality broadband infrastructure that would benefit city offices, consumers and businesses," said co-author Becca Vargo Daggett, a former information systems administrator for a private company.

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