Re: Muni Fiber and Politics

[Owen DeLong <owen () delong com>]

On Jul 22, 2014, at 08:27 , Aaron <aaron () wholesaleinternet net> wrote:

> So let me throw out a purely hypothetical scenario to the collective:
>
> What do you think the consequences to a municipality would be if they laid fiber to every house in the city and gave 
> away internet access for free?  Not the WiFi builds we have today but FTTH at gigabit speeds for free?

I think the project would be enjoined before it could get permitted. I don't think they'd be allowed to move a single 
backhoe in support of the project.

> Do you think the LECs would come unglued?

Definition: LEC -- Local Exchange Carrier -- A law firm masquerading as a communications company.

Yeah, I think they'd come unglued and wallpaper every courthouse between city hall and the state capital until such a 
project was not only illegal, but any city that considered such a notion faced huge fines for even thinking about it.

That doesn't mean I think it's a bad idea, just what I think would actually happen.

Owen

> Aaron
>
>
> On 7/21/2014 8:33 PM, Miles Fidelman wrote:
> > I've seen various communities attempt to hand out free wifi - usually in limited areas, but in some cases 
> > community-wide (Brookline, MA comes to mind).  The limited ones (e.g., in tourist hotspots) have been city funded, 
> > or donated.  The community-wide ones, that I've seen, have been public-private partnerships - the City provides 
> > space on light poles and such - the private firm provides limited access, in hopes of selling expanded service.  I 
> > haven't seen it work successfully - 4G cell service beats the heck out of WiFi as a metropolitan area service.
> >
> > When it comes to municipal fiber and triple-play projects, I've generally seen them capitalized with revenue bonds 
> > -- hence, a need for revenue to pay of the financing.  Lower cost than commercial services because municipal bonds 
> > are low-interest, long-term, and they operate on a cost-recovery basis.
> >
> > Miles Fidelman
> >
> > Aaron wrote:
> > > Do you have an example of a municipality that gives free internet access to it's residents?
> > >
> > >
> > > On 7/21/2014 2:26 PM, Matthew Kaufman wrote:
> > > > I think the difference is when the municipality starts throwing in free or highly subsidized layer 3 connectivity 
> > > > "free with every layer 1 connection"
> > > >
> > > > Matthew Kaufman
> > > >
> > > > (Sent from my iPhone)
> > > >
> > > > > On Jul 21, 2014, at 12:08 PM, Blake Dunlap <ikiris () gmail com> wrote:
> > > > >
> > > > > My power is pretty much always on, my water is pretty much always on
> > > > > and safe, my sewer system works, etc etc...
> > > > >
> > > > > Why is layer 1 internet magically different from every other utility?
> > > > >
> > > > > -Blake
> > > > >
> > > > > > On Mon, Jul 21, 2014 at 1:38 PM, William Herrin <bill () herrin us> wrote:
> > > > > > > On Mon, Jul 21, 2014 at 10:20 AM, Jay Ashworth <jra () baylink com> wrote:
> > > > > > > Over the last decade, 19 states have made it illegal for municipalities
> > > > > > > to own fiber networks
> > > > > > Hi Jay,
> > > > > >
> > > > > > Everything government does, it does badly. Without exception. There
> > > > > > are many things government does better than any private organization
> > > > > > is likely to sustain, but even those things it does slowly and at an
> > > > > > exorbitant price.
> > > > > >
> > > > > > Muni fiber is a competition killer. You can't beat city hall; once
> > > > > > built it's not practical to compete, even with better service, so
> > > > > > residents are stuck with only the overpriced (either directly or via
> > > > > > taxes), usually underpowered and always one-size-fits-all network
> > > > > > access which results. As an ISP I watched something similar happen in
> > > > > > Altoona PA a decade and a half ago. It was a travesty.
> > > > > >
> > > > > > The only exception I see to this would be if localities were
> > > > > > constrained to providing point to point and point to multipoint
> > > > > > communications infrastructure within the locality on a reasonable and
> > > > > > non-discriminatory basis. The competition that would foster on the
> > > > > > services side might outweigh the damage on the infrastructure side.
> > > > > > Like public roads facilitate efficient transportation and freight
> > > > > > despite the cost and potholes, though that's an imperfect simile.
> > > > > >
> > > > > > Regards,
> > > > > > Bill Herrin
> > > > > >
> > > > > >
> > > > > > -- 
> > > > > > William Herrin ................ herrin () dirtside com bill () herrin us
> > > > > > Owner, Dirtside Systems ......... Web: <http://www.dirtside.com/>
> > > > > > Can I solve your unusual networking challenges?
>
> -- 
> ================================================================
> Aaron Wendel
> Chief Technical Officer
> Wholesale Internet, Inc. (AS 32097)
> (816)550-9030
> http://www.wholesaleinternet.com
> ================================================================