On 8/27/2010 12:51 PM, George Ou wrote:
While it may be inappropriate to consider the existing "last mile"
broadband infrastructure as "public property," it is likewise
inappropriate not to realize that it should be dealt with as a
public utility, just like electric lines, water lines and sewer
lines. It is simply cost-prohibitive (and certainly inefficient) to
run multiple broadband connections to each home (especially rural
ones being subsidized already by the UTF). The "last mile" should be
managed more efficiently for municipal use, just like we figured out
years ago for phones, power, water and sewer.
Should a municipality desire to "own the infrastructure" (such as
Kutztown, PA; an example of municipal fiber suspiciously absent from
Mr. Ou's essay on "failed
municipal broadband"), they should be allowed. If, on the
other hand, the more common model is used where a private company
builds and manages the infrastructure, it should be regulated like
the monopoly it is and forced to share the bandwidth, just as I can
now, here in Pennsylvania, purchase electric power from a variety of
providers, but it is delivered by the local transmission network
managed by Execlon / PECO, and regulated by the PA PUC. I'm not
saying the PA PUC does a great job of representing PA's consumers
vs. the companies they're supposed to regulate, but it's a start.
Also note that that "telephone companies" have promised regulatory
commissions that they will deliver broadband / fiber to a wide range
of areas, and been allowed rate increases to fund that. Actual
delivery has not matched the promises. Better regulation and
oversight is definitely needed.
And to be clear: I am a "small government" proponent. Smaller
government and fewer regulations are my desire, except in cases
where it makes sense. Last mile broadband is one of those cases
where it makes sense. Competition in the last mile does not make
sense. Running a half dozen fiber optic lines to every home in the
US in order to get a free, open market competitive situation simply
is not going to happen and is not cost effective. We can't even get
a single fiber connection to every home at this point, much less a
half dozen. And it's just a waste anyway. When choice of electric
provider was introduced in PA, we didn't string six more power lines
to every home.
To dispute that broadband last-mile networks should not be treated
as a public utility is just as mistaken as calling them public
property.
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