More on: Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide

[David Farber <dave () farber net>]

Begin forwarded message:

From: Gerry Faulhaber <gerry-faulhaber () mchsi com>
Date: December 3, 2004 4:16:28 PM EST
To: dave () farber net
Subject: Re: [IP] More on: Rendell caves and signs HB30 - Verizon can 
prevent municipal networks statewide

Thanks, Jock, for your informative response.  As I mentioned at the 
very front of my note, I really don't like this legislation.  I think 
letting municipalities in otherwise unserved rural areas build their 
own BB is a great idea.  I'm glad rural Washington has had this 
opportunity and I wish the rural areas of Pennsylvania eventually have 
the same choice.

But it is still true that many municipalities are not quite so 
enlightened. Certainly Philadelphia public monpolies pretty much suck: 
PGW, SEPTA, trash collection, PHS, ...  Can't think of a single good 
one, except perhaps Fairmount Park Commission.  They may end up 
supplying those areas that Verizon and/or Comcast will not serve, and 
that's a good thing which I support.  But not all of us are fortunate 
enough to have such enlightened town fathers as Belmont, MA.  In fact, 
I think most of us are not; there is an extensive economics literature 
on how anticompetitive public monopolies can be, even worse than 
private ones.

I am actually much closer to Bill St. Arnaud's position.  What would be 
far preferable is a more competitive market for BB, which in fact 
municipalites can certainly help with.  Public monopoly supply seems to 
me a last resort for the unserved, such as the TVA.

Professor Gerald R. Faulhaber
Business and Public Policy Dept.
Wharton School, University of Pennsylvania
Philadelphia, PA 19104

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