Broadband Is Important For Economic Development, But It's Not The Only Thing

from the build-it-and-they-will-come? dept

While we're seeing yet another battle over muni-fiber deployments, it's worth checking in on the question of whether or not these programs work. We've certainly seen in the past how such muni-fiber deployments can significantly aid in economic growth, but it's not a panacea. Muni-wireless connections have been a disaster, but that's mainly because cities bet on the absolute wrong technology (WiFi) which isn't designed for wide-area deployments. However, when it comes to fiber deployments, the results have tended to be much better, increasing opportunities and often recruiting new employers that have increased jobs. However, as Broadband Reports points out, muni-fiber alone is not enough. The Washington Post compares two cities that installed muni-fiber and had very different results. In one, the jobs came, but it also involved setting up other efforts to lure companies to move offices to their city. As one commenter noted, it worked where city planners "took a holistic view of its workforce with support programs, and they see it as a long process." So, yes, muni-fiber projects can work and contribute to economic development, but it's a lot more than a "build and they will come" sort of project.

Filed Under: broadband, economic development, muni fiber

Once Again, Telco Told That It Can't Stop Muni Fiber

from the how-dare-they-want-competition dept

Telco monopolists really are amazing sometimes. For years, we've been seeing them abuse their monopolies, offer poor (and expensive) service thanks to a lack of competition -- and then freak out, when they're actually challenged in the marketplace. And, of course, nothing gets them more worked up than the threat of some sort of "municipal" competitor. Time and time again, they go to court to block any muni-fiber offering, and time and time again they lose. The latest is TDS Telecom having its case dismissed in Monticello, Minnesota, where voters have approved a bond issue to set up a municipal fiber network. Such networks have been tremendously successful elsewhere.

TDS, of course, claims that it should be illegal for the government to compete with them, but they leave out many of the details. First, they have no real competition, because the government granted them a monopoly. So they're already in many ways the beneficiary of a gov't program. To claim that no one else can benefit from the gov't is simply anti-competitive and ignores the monopoly they themselves received. Second, since this is a bond issue, there's no taxpayer money at issue -- and the citizens of the town approved it. Finally, perhaps if TDS didn't rest on its monopoly laurels, it wouldn't now be facing competition. All this has made clear was that TDS failed to deliver what the town wanted, so the town got together and came up with a solution. Good for them.

Filed Under: minnesota, monticello, muni fiber
Companies: tds