Citywide or statewide franchise, makes no difference. Still a franchise
and still a state-granted monopoly. What is the problem with monopoly?
Well, the classical analysis finds dead-weight costs. What's the problem
with a state-granted monopoly? Well, there's at least two. First, an
ordinary monopoly might be disentrenched. That's at least the belief of
some people in some economics depts. Second, competition for grant of
the monopoly through use of influence with the local government, whether
that be a municipal or a state government, just seems to lead to
obviously sub-optimal outcomes.
Jim Henry wrote:
Look to the franchising issue to change, if not go away. Due to the ILECs
entering the video market they are trying their very best NOT to have to
jump through all the hoops the cable company's were forced to. They've
already gotten the law changed in Texas to where a company can apply for a
state wide franchise rather than have to apply for a franchise with each
municipality. Since municipal video franchises were just a way for the
munipalities to extort all kinds of services for free or discount in return
for the franchise, this should be at least some improvement. I'm sure the
cable company's are not going to sit still and allow this to change for
Verizon, Quest, and SBC(AT&T) and not have a level playing field so they
will do their utmost to be included in these changes or get the law changed
back so that the ILECs must compete with the same rules.
Jim
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf
Of Schainbaum, Robert
Sent: Saturday, January 07, 2006 8:13 PM
To: [EMAIL PROTECTED]; nycwireless@lists.nycwireless.net
Subject: Re: [nycwireless] Municipal Broadband - Must read!
Subsidy or no subsidy, we only have to consider the far
superior quality
of South Korean broadband to realize that the entire notion
of providing
a market solution to satisfy a market need has absolutely
broken down in
the case of our country. It has always seemed to me that the
underylying
theme theme in the capitalistic creed is a lack of orthodoxy.
It seems a
failure of the creed to ignore the crucial fact that private
solutions
to telecommunications problems in the US or through the
private economy
usually (if not always) involve the grant of a local
franchise. I don't
see why the municipality can't grant itself the franchise.
I'm tired of
any reflex response that fails to take account of our
surpassing failure
in this crucial are of our business and social infrastructure.
Jim Henry wrote:
Lars,
Perhaps there is no subsidy in your case. I may have
mis-understood.
If the municipality involved did not fund the fiber build with tax
dollars, and is making a profit on the network, which is
necessary in
order to support and maintain the fiber network, then there
is none. I
do feel it would be much better, more efficient, and more
economical to
have the network operated and maintained by a commercial enterprise
than a government entity. As to the cost of your Internet
connection,
it sounds like a good deal to me and I did not want to imply
otherwise.
Jim
-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf
Of Lars Aronsson
Sent: Saturday, January 07, 2006 4:33 PM
To: 'nycwireless'
Subject: RE: [nycwireless] Municipal Broadband - Must read!
Jim Henry wrote:
I'd be willing to bet you are not counting the taxes you and your
fellow subjects pay for that municipal fiber network as
part of that
$40/month.
Does every ISP in Manhattan dig the streets to lay down their own
cables? How does that work in this era of telecom deregulation?
Since city streets (and street lights) are a municipal monopoly,
it makes sense to have one municipal ditch with one municipal
fiber infrastructre, where telcos and ISPs can rent fibers or
bandwidth at or near cost price.
My ISP is a private corporation that pays for using the municipal
fiber, and their money comes from my $40/month. I don't see where
any subsidy would come in.
You're probably right that I pay a higher income tax, and I'm not
defending that. I'm just curious how you could help me to find a
more efficient broadband solution than the one I already
have. Where and how do you live and what do you pay for broadband?
--
Lars Aronsson ([EMAIL PROTECTED])
Aronsson Datateknik - http://aronsson.se
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