|
Public Investment in Broadband InfrastructureBy Rick MorsePublished December 17, 2009Rick Morse is a School of Government faculty member. If you have not followed the news on this, the City of Wilson, NC recently invested $28 million on a fiber optic network throughout the community and now operates Greenlight cable, internet, and phone as a local utility. After the big cable companies would not invest in fiber, the community decided to make a public investment. The thinking is that in the 21st Century, investing in broadband is a public good much like roads and other public utilities. A couple things make this case particularly interesting. First, Wilson in only the second municipality in North Carolina to do this and one of just several dozen in the U.S. Second, Time-Warner Cable has been fighting what Wilson has done vigorously, including trying to get legislation passed that would effectively ban community-based ISPs on the grounds of unfair competition. This raises an interesting question regarding the role of government in infrastructure development. Public leaders like Goings argue that in the 21st century we ought to be thinking about broadband infrastructure in much the same way communities have historically thought of water, sewer, and road infrastructure. Those “bricks-and-mortar” type assets have long been viewed as public goods essential to community vitality and growth. Now, some argue, broadband infrastructure is equally important to the long-term prosperity of communities. In a recent announcement of a $7.2 million stimulus award for broadband for one of his rural communities, Georgia Governor Sonny Perdue said: “Broadband is the new dial tone of the 21st century….Internet access is as important to our communications infrastructure today as reliable telephone service was a century ago. Creating an advanced network will promote economic development, expand educational opportunities and improve the availability and efficiency of government services.” The logic follows that where private investment is not an option that it is appropriate for local communities to invest in broadband infrastructure. Obviously Time-Warner and other private telecommunications providers disagree. They believe it creates an unfair playing field. What do you think about this issue? Should communities–particularly rural communities that are unlikely to see private investment in broadband infrastructure–look at broadband infrastructure in much the same way as they do other forms of community infrastructure? Is it an “essential utility” like water or roads? You can find out a lot more about Wilson’s experience and the battle in the General Assembly over HB 1252 on the Save NC Broadband blog. In terms of economic development, particularly in rural areas, this issue is huge and what the General Assembly decides to do with HB 1252 will have significant implications on the future of public investment in broadband. |
Published December 17, 2009 By Rick Morse
Rick Morse is a School of Government faculty member.
If you have not followed the news on this, the City of Wilson, NC recently invested $28 million on a fiber optic network throughout the community and now operates Greenlight cable, internet, and phone as a local utility. After the big cable companies would not invest in fiber, the community decided to make a public investment. The thinking is that in the 21st Century, investing in broadband is a public good much like roads and other public utilities.
A couple things make this case particularly interesting. First, Wilson in only the second municipality in North Carolina to do this and one of just several dozen in the U.S. Second, Time-Warner Cable has been fighting what Wilson has done vigorously, including trying to get legislation passed that would effectively ban community-based ISPs on the grounds of unfair competition. This raises an interesting question regarding the role of government in infrastructure development.
Public leaders like Goings argue that in the 21st century we ought to be thinking about broadband infrastructure in much the same way communities have historically thought of water, sewer, and road infrastructure. Those “bricks-and-mortar” type assets have long been viewed as public goods essential to community vitality and growth. Now, some argue, broadband infrastructure is equally important to the long-term prosperity of communities.
In a recent announcement of a $7.2 million stimulus award for broadband for one of his rural communities, Georgia Governor Sonny Perdue said: “Broadband is the new dial tone of the 21st century….Internet access is as important to our communications infrastructure today as reliable telephone service was a century ago. Creating an advanced network will promote economic development, expand educational opportunities and improve the availability and efficiency of government services.” The logic follows that where private investment is not an option that it is appropriate for local communities to invest in broadband infrastructure. Obviously Time-Warner and other private telecommunications providers disagree. They believe it creates an unfair playing field.
What do you think about this issue? Should communities–particularly rural communities that are unlikely to see private investment in broadband infrastructure–look at broadband infrastructure in much the same way as they do other forms of community infrastructure? Is it an “essential utility” like water or roads? You can find out a lot more about Wilson’s experience and the battle in the General Assembly over HB 1252 on the Save NC Broadband blog. In terms of economic development, particularly in rural areas, this issue is huge and what the General Assembly decides to do with HB 1252 will have significant implications on the future of public investment in broadband.
Author(s)
Tagged Under
This blog post is published and posted online by the School of Government to address issues of interest to government officials. This blog post is for educational and informational Copyright ©️ 2009 to present School of Government at the University of North Carolina. All rights reserved. use and may be used for those purposes without permission by providing acknowledgment of its source. Use of this blog post for commercial purposes is prohibited. To browse a complete catalog of School of Government publications, please visit the School’s website at www.sog.unc.edu or contact the Bookstore, School of Government, CB# 3330 Knapp-Sanders Building, UNC Chapel Hill, Chapel Hill, NC 27599-3330; e-mail sales@sog.unc.edu; telephone 919.966.4119; or fax 919.962.2707.
One Response to “Public Investment in Broadband Infrastructure”
Lisa Stifler
NPR ran a story this morning about efforts to use some of the $7.2 million in stimulus money to bring broadband to rural and/or underserved areas. The story highlights a funded project in Maine, a proposed project in Philedelphia, and the efforts by private telecommunications companies to block the public efforts.
Here is the link to the (written) story – http://www.npr.org/templates/story/story.php?storyId=123409454