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Lafayette responds to first Heartland Institute paper

Heartland makes five main arguments against public FTTH systems: (1) there is no need for municipal entry because robust competition exists among private-sector broadband providers, which are currently meeting, and will continue to meet, America’s broadband needs; (2) there is no evidence that municipal investments in broadband technology lead to faster economic growth
or higher personal incomes; (3) the private sector is more efficient that the public sector; (4) municipal projects typically encounter higher than expected costs and large operating losses borne by taxpayers; and (5) municipal broadband networks are very risky ventures. None of these contentions holds up under analysis.

Broadband and Economic Development: A Municipal Case Study From Florida

In this paper, George S. Ford and Thomas M. Koutsy explore whether broadband investment by municipalities has an effect on economic growth. To do so, they employ an econometric model to compare economic growth in Lake County, Florida, with other similar Florida counties. In 2001, Lake County – a small county in central Florida – began generally offering private businesses and municipal institutions access to one of Florida’s most extensive, municipally-owned broadband networks, with fiber optic connections to hospitals, doctor offices, private businesses, and 44 schools. Lake County has experienced approximately 100% greater growth in economic activity – a doubling – relative to comparable Florida counties since making its municipal broadband network generally available to businesses and municipal institutions in the county.

Economist John Kelly responds to Rizzutto and Wirth

This paper provides evidence that municipally owned and operated cable television enterprises are financially viable and provide large rate savings to their communities. The findings contradict allegations in Costs, Benefits, and Long-Term Sustainability of Municipal Cable TelevisionOverbuilds, a 1998 paper authored by Ronald J. Rizzuto and Michael O. Wirth, that such enterprises are likely to be poor investments for cities.

WiFiNetNews responds to alleged municipal failures

Philadelphia has delayed releasing its detailed plan for a wireless broadband infrastructure from early February to an unknown time. There’s a missing piece in this coverage that I wanted to mention: Dianah Neff keeps saying “broadband” while Comcast and Verizon say “broadband” and they don’t mean the same thing.

Does Municipal Supply of Communications Crowd-Out Private Communications Investment?

There are 2,007 municipalities across the United States that provide electricity service to their constituents. Of these, over 600 provide some sort of communications services to the community. An important policy question is whether or not public investment in communications crowds out private investment, or whether such investment encourages additional entry by creating wholesale markets and economic growth.