Local officials sound off on municipal wireless

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regulation vs. ownership

How is it fair that cities regulate phone and cable companies and at the same time compete with them?

A regulation will apply to any entity covered by it - regardless of ownership, quick example - city owned vehicles do not get to avoid any emmission requirements.

The biggest difference with the municipal providers compared to private companies is the profit motive. Municipal entities generally do not have to meet the same profit levels as their private counterparts.
Ostenibly they are in it for "the people" and not "the money". A council can, rightly, make a case for providing a service that makes a loss on its own accord if there is a net tangible benefit to the community and/or the tax base.

In matters of infrastructure (which is what broadband access is) there are always going to be areas and/or groups that have marginal costs of service that are too high for private companies to contemplate - especially is the times before universiallity or ubiquitiousness - all the "last mile" stuff.

Municipal provision of an infrastructural requirement is generally a good thing - just like Donnie said.

Posted by: Dave F_z   Posted on: 05/04/05 You are currently: a Guest | Members login | Terms of Use

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