People are economically rational about municipally owned and operated broadband systems. Emotions – hatred of incumbents or warm, fuzzy collectivist feelings – do not motivate consumers to switch ISPs or vote for tax-backed bonds to pay for a publicly provided gigabit. That’s my conclusion yet again, after reading yet another professionally executed muni broadband feasibility study, this one by Columbia Telecommunications Corporation for Multnomah County in Oregon (h/t to Fred Pilot at the U.S. Telecom Infrastructure Crisis blog).… More
It’s not about finding a mass market solution. It’s about finding a sufficiently acute mass market problem.
The struggle to develop a general fiber-to-the-home (FTTH) or premises (FTTP) business model for city-wide deployments doesn’t result from a market failure. Quite the contrary. It’s evidence that the laws of supply and demand are in full effect.
Demand, meet supply.
People generally get the broadband service someone else – a business or government agency mostly – is willing to give them for the price they’re willing to pay.… More
The unveiling of Gigabit Seattle yesterday is just the first step on a long road to building a fiber to the premises (FTTP) service for residents. The City of Seattle and the University of Washington have endorsed a plan by a consulting firm – Gigabit Squared – to “begin raising the capital needed” for a demonstration project.
It’s not small change. The 200 miles of fiber needed to reach 50,000 homes and businesses in 12 neighborhoods will cost something like $50 million to install and light up.… More
Like nearly every government agency in California, the City of Oakland was faced with increasing demand for public services and a decreasing budget. An evaluation was needed of the potential for wireless technology to make municipal staff more efficient and allow them to stay in the field longer, and to provide Internet service to residents, either directly in their homes and businesses or indirectly through community anchor institutions. This evaluation needed to focus specifically on Oakland’s diverse population, needs and terrain.… More