With the COVID-19 pandemic highlighting the persistent “digital divide” between low-income and rural Americans and the rest of the country, Congress is poised to allocate significant funding for broadband expansion. How it does so, however, will have a big effect on consumers and taxpayers. One strategy is to encourage municipalities to build and operate their […]
On March 21st, the Maine Legislature announced the approval of $15 million in broadband Internet funding for rural and underserved areas. The intention is to expand broadband infrastructure, which will ultimately lead to economic development, and provide benefits like telemedicine to underserved communities. But the proposal is only a mere tactic that uses the current […]
The empirical evidence shows that the public provision of private goods, such as broadband services, often leads to: unprofitable operations that push the recovery of losses to taxpayers and to other public services; and barriers to entry which displace and crowd out private investment. The result is anticompetitive and it raises consumer costs. Evidence shows […]
On September 21st, President Barack Obama’s Broadband Opportunity Council released its first report. The council outlined four main recommendations for promoting broadband, but the council’s report was also notable for what it left out – any specific mention of municipally-run broadband services. The omission was particularly stunning considering the Federal Communications Commission (FCC), led by […]
For years now, many city and local governments have gotten into the municipal broadband game—spending taxpayer dollars to create broadband networks that hope to compete with private providers. The goal of these programs was to build an Internet service that replaces the need for private investment, usually with the help municipal tax dollars. The municipal […]
With enough IT engineering talent, equipment, and access to an Internet network access point or other interconnection agreements, any community can build a government broadband network. With a coherent and stable set of goals, and with the right quality and amount of management and technical staff, anyone can operate a community broadband network. But that’s […]
The FCC is considering a petition filed by two municipal-run broadband networks that asked the FCC to preempt state laws that limit the expansion of government-owed networks. Today, ACI filed its comments pointing out how many of these networks are mismanaged, unprofitable and costly for consumers and taxpayers, as well as posing anticompetitive risks. ACI’s comments are filed with the […]
Have you ever waited in line at a municipal government office and wondered how much faster private firms are in transacting business with the public? Well, the line for Internet services may be getting much longer, if the FCC gets its way. At the National Cable Show early this month, The FCC’s Chairman, Tom Wheeler, […]
Professor Joseph P. Fuhr Jr., a Senior Fellow at ACI, wrote an article on the problems with government operated broadband networks. The article was published in the Journal of James Madison Institute and can be found on page 45 of that report.
This piece by Dr. Joseph Fuhr was published in the News Gazette and is available on their website.