[TriLUG] mostly OT: Tech Lobbyist

[Scott Chilcote via TriLUG]

On 09/24/2015 02:00 PM, David Burton via TriLUG wrote:
> On Thu, Sep 24, 2015 at 12:59 PM, Tim Jowers via TriLUG <trilug at trilug.org>
> wrote:
>
>  State of NC outlawing competition for Internet Access is a well-known
>> example.
>>
> The State of NC did not outlaw *private* competition for internet access.
> Rather, they restricted some *municipalities*' ambitions to compete with
> private companies providing internet access, to prevent debacles like
> Salisbury's.
>
> The Salisbury/Calix "Fibrant" municipal internet service had great specs
> and a great price, but that's because they operated at a loss. They're in
> debt to the tune thousands of dollars per customer. They hemorrhaged so
> much money that Moody's lowered the city's bond rating.
> http://www.carolinajournal.com/exclusives/display_exclusive.html?id=11193
> https://www.macroaxis.com/invest/ratio/CALX--Probability_Of_Bankruptcy
> http://rowanfreepress.com/2015/09/04/has-salisbury-n-c-been-10-gigged/
>
>
It seems a bit specious to hold up Salisbury as what's wrong with
municipal broadband, when there are a vast number of examples of places
where it works very well.

In general, municipal broadband in the US is the "third tier" solution. 
During the late nineties and early 2000s, the US government contracted
with the major telecoms including SBC, Verizon, BellSouth, and others to
the tune of well over 200 billion taxpayer dollars to create a national
fiber internet infrastructure.  It failed
<http://www.pbs.org/cringely/pulpit/2007/pulpit_20070810_002683.html>
completely <http://newnetworks.com/ShortSCANDALSummary.htm>, with the
telecoms getting to keep the money.  I consider that to be (or have
been?) the first tier.  Many other nations have successfully operated
public-private partnerships to create their fiber networks, and are now
way ahead of the USA.

With no support at the federal level, a municipality seeking high speed
internet service has few options.  Their first is the American Way (tm),
to go to the nearest internet service provider(s) and offer them money. 
That's tier #2.  But if those commercial providers decline, or request
huge amounts to install new infrastructure (which arguably, we have
already purchased), what other choice do they have?  Tier 3: sell bonds
and install fiber.

I consider it egregious in the utmost that the commercial providers have
the unvarnished gall to turn around and lobby at the state capitol to
intercede, when they give communities no other option.  Internet access
is no longer a luxury.  Welcome to the global economy, where having the
tools to compete is essential. 

It's unfortunate that not every town government makes good decisions
when it comes to building out broadband networks.  It's far more
unfortunate that they are given no other way to succeed.

   Scott C.





-- 
Scott Chilcote
scottchilcote at ncrrbiz.com
Cary, NC USA