VORTEX Digest John Gallant Spotlights Top Network News and Issues Comments to: mailto:[EMAIL PROTECTED] Dec. 3, 2004 Volume 6, Number 18 ********************************************************* In This Issue: * Plans for low-cost broadband wireless in Philly * Vortician weighs in on private/public ownership debate * Why shouldn't cities and towns be able to build their own networks? * [EMAIL PROTECTED]: 15 years of technology in bloom * Invite a friend to join the discussion * Subscription information *********************************************************
"Oh, it's all right Tracy. We all go haywire at times and if we don't, maybe we ought to." >From The Philadelphia Story (1940) Dear Vorticians, The Philadelphia Story is one of those classic romantic comedies of a bygone age; the kind in which suave stars and starlets - the Cary Grants and Kate Hepburns - toss off quotable quips between cigarettes and martinis. But there's a modern-day Philly story unfolding right now that's neither romantic, nor particularly funny. Earlier this year, the city of Philadelphia announced plans to build a broadband wireless network that will be available to residents at relatively low rates. The city's CIO, Dianah Neff, says the effort was aimed at dramatically improving availability of high- speed Internet access because 60% of neighborhoods still don't have broadband service. In moving ahead with its own plans, Philly was joining a growing cadre of municipalities that are taking their broadband futures into their own hands. Not content to wait for incumbent telcos or cable companies to deliver the goods, these cities and towns are wiring or unwiring access to the Internet. There's a twist in the Philadelphia story, however. Just this week, Penn. Gov. Edward Rendell signed into law a bill that, basically, would prevent municipalities from doing exactly what the city plans. The legislation requires cities and towns to ask their incumbent providers for permission to set up their own networks. It ensures that incumbents have the first shot at building broadband. The law grandfathers the networks already in place in Pennsylvania cities and gives others a limited window of opportunity to launch their own before its provision about seeking permission kicks in. Philly probably would have been OK under that provision, but it also worked out a deal with Verizon under which the incumbent agreed not to make a fuss. But after one year, every other city must go with hat in hand to the incumbent to get approval for any fee-based community networking. One state official said: "This leaves the rest of the municipalities on their own." (You can read more by clicking http://www.nwfusion.com/news/2004/1202verizdeal.html.) For its part, Verizon says it's unfair for the company to be forced to compete with these networks, offered at lower price ($15 per user in Philadelphia's case) and subsidized by tax dollars. Critics say the law sets a dangerous precedent for other states and it is clear that this issue of public vs. private networking will only get more heated. Vortician Robert Berger was prescient in writing to me about this public/private issue in early November. He was responding to another reader's note saying - in essence - that the U.S. is doing just fine in telecom, despite a rather gloomy report on the nation's slipping status there. Vortician Berger wrote: "Ah, the market will save us all. Just have faith and ignore reality. "So why aren't roads, sewers and water supplies owned, built and operated by private companies? I would like to see just common goods delivered at a price that gives the private company a viable ROI and does not ruin society so only rich people have access to roads and water. "The choice isn't unbridled capitalism or total socialism. There are some things that governments are appropriate for. And I propose that physical transport (conduits, dark fiber) should be owned, built and maintained by municipal governments just as they do roads. The municipalities already own the rights of way, have men in trucks and finance mechanisms (bonds) to pay for a long- term asset like conduit/dark fiber. "The dark fiber can be home run to municipal collocation facilities where commercial competitive entities can lease fiber in an open access manner. The commercial services can then offer transport and content services to residents and businesses. A whole ecology of services can be created and offered by the marketplace - just as roads enabled an incredible and unpredictable range of goods and services. "But of course the RBOCs and cable companies are fighting this tooth and nail. They don't build optimal transport but instead use their stranglehold on the last mile to limit bandwidth and force their expensive monopoly content down their pipes. They have even convinced 13 states to pass laws outlawing municipalities from offering telecom services." I can't verify Vortician Berger's claim on the 13 state laws at this point, but I ask you all: Why shouldn't cities and towns be able to build their own networks? Wouldn't that spur the broadband revolution? Won't it ensure that broadband is more universally available? As always, weigh in at mailto:[EMAIL PROTECTED] Bye for now. ********************************************************* [EMAIL PROTECTED]: 15 years of technology in bloom ********************************************************* [EMAIL PROTECTED] Feb. 13-15, 2005, Scottsdale, Ariz. Through the years, 1,500 companies have launched technologies live on our stage; a few have launched revolutions. You've heard of Palm, TiVo and Java? [EMAIL PROTECTED] will be the best way to get your head - and your hands - around what's next. Register now and save $500 with our preferred rate! http://www.demo.com/D5VD ********************************************************* Tell a Friend ********************************************************* Is there a friend or colleague you'd like to have join the discussions held here at VORTEX Digest? Have them subscribe to receive the weekly Digest at: http://www.nwwsubscribe.com/Changes.aspx ********************************************************* ABOUT VORTEX DIGEST ********************************************************* VORTEX Digest is written weekly by Executive Producer John Gallant and offers an ongoing dialogue on matters raised at The VORTEX Conference, and within the VORTEX Community. VORTEX is an exclusive, invitation-only event for senior executives that brings together all the key elements: leadership, thought, funding, and regulatory expertise, to shape the future of the network business and the technologies that drive it. VORTEX shakes off the hype and helps you understand where you can win new customers, and find new revenue in a time of dramatic and seemingly unpredictable change. ********************************************************* SUBSCRIPTION INFORMATION ********************************************************* To subscribe or unsubscribe to any Network World e-mail newsletters: http://www.nwwsubscribe.com/Changes.aspx To access the VORTEX Digest archives: http://www.nwfusion.com/newsletters/vortex/index.html To unsubscribe from promotional e-mail: http://www.nwwsubscribe.com/Preferences.aspx To change your e-mail address, go to: http://www.nwwsubscribe.com/ChangeMail.aspx Subscription questions? Contact Customer Service by replying to this message. Have editorial comments? Contact John Gallant at mailto:[EMAIL PROTECTED] For advertising information: mailto:[EMAIL PROTECTED] Copyright: Network World, Inc. 2004 ------------------------ This message was sent to: [EMAIL PROTECTED]
