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Forums » Adventures in PA Broadband » Its all a dream anyways
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pnh102
Reptiles Are Cuddly And Pretty
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Mount Airy, MD
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Re: Its all a dream anyways

said by batageek See Profile:
Taxes? Most muni systems are self supporting entities that do not require any taxes. They may use bonding to initially build the systems, but pay the bonds off with revenues from user fees
This is what I still don't get. If these systems eventually pay for themselves as everyone seems to believe, why involve the government at all? Why can't a bunch of like-minded private citizens pool their resources and build their own service? You get all the benefits of local accountability and having the money stay in town and it doesn't cost the government a nickel.

Even that municipal broadband attorney didn't answer that one.
--
Saying that Microsoft has a monopoly in Operating Systems because one is too lazy to learn a different OS is like saying that Ford has a monopoly in cars because one is too lazy to find a Honda dealership.
permalink · 2003-05-24 11:47:01 · Print · Reply to this

tschmidt
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Milford, NH
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Re: Its all a dream anyways

said by pnh102 See Profile:
This is what I still don't get. If these systems eventually pay for themselves as everyone seems to believe, why involve the government at all? Why can't a bunch of like-minded private citizens pool their resources and build their own service? You get all the benefits of local accountability and having the money stay in town and it doesn't cost the government a nickel.

Even that municipal broadband attorney didn't answer that one.
That is another possibility. The problem for over builders is to gain financial confidence. It is easier much easier for municipalities since they are debt driven rather then equity. The expected rate of return can be much lower just enough to pay the bond rather then ever higher quarterly returns.

There is also a matter of local control. If an over builder builds the network there is no requirement for open access. They are perfectly able to build a vertically integrated network and exclude anyone and any service they want.
permalink · 2003-05-24 13:01:43 · Print · Reply to this
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