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07/03/09 01:34 PM
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Seattle
McGinn weighs in on Internet access
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Impoverished understanding of competitive markets
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Isn't it time to wake up? Ask a respectable economist the definition of a competitive market and you may be surprised to learn that the telecommunications and "broadband" sector don't fit the bill. In order for the consumer and the pubic to benefit from a competitive market we need to be sure we have one. A duopoly is no better than a monopoly - indeed this is the market that put the USA at the #20 ranking. The #20 spot doesn't tell enough of the story either. You'll need to look at relative cost/bit transit. We're number 20 driving along in a 2-cylinder engine car, while other countries have a F15. City ownership isn't "monopoly" - that's just the distraction of the duopolists. City ownership would be a civic service aimed at the public interest, not at the narrow interest that tries to squeeze the most money out of the copper infrastructure or cripple the Internet and stifle creativity because they can't adapt. The first rule of any network from a business perspective - buy or build your own when you can - don't rent. That's the mistake cities have been making for years. If it's good enough for the private sector to own their own networks - let the people benefit from the same economic logic. |
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Comment by
Michael
July 03, 2009
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Competitive Broadband
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| I agree with Michael. Let Seattle citizens own our own Broadband just as we own Seattle City Light. Not only is this a smart idea for our future competitiveness in a world economy, it also gets us one step closer to Smart Grid technology. | |
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Comment by
Becky
July 03, 2009
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Our neighbors to the south
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| Tacoma's already done this. The city-owned Tacoma Power put up citywide fiber optic lines in the late 1990s, initially just for internal operating efficiencies. With this infrastructure in place, Tacoma Power has been able to add cable TV and (in conjunction with three competing ISP subcontractors) home Internet service. Seattle's also got city-owned power lines. We know this can be done. Let's do it. | |
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Comment by
Clark Humphrey
July 03, 2009
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There he goes again!
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First it was "I'm taking over the schools", then it was "we're going to tear down the Viaduct and not replace it with anything", now it's "City Light is going to build a fiber optic system". Well this is the problem with people that run for mayor that lack first, on-the-ground knowledge about our city government, second, that have been involved in just about zip things in town, except for some special interest, insider things with our present mayor, and three, on top of it all lack vision and critical and creative thinking. Sad, but the more informed candidate, Elizabeth Campbell had this to say about Mike's brainstorm - "The fact of the matter is that the City of Seattle has a franchise with broadband providers, like Comcast, that it could just as easily negotiate an agreement with them to provide reduced or subsidized fee Internet services to the underserved poputlations of Seattle. For too long the City blithely gives away taxpayer money to just about every private industry partner it does business with, asking little in return. As mayor that will change, as City government is not organized for the sole benefit of private interests. Demanding that Comcast provide a portion of its market for the benefit of the public at large is not a stretch. Comcast and others utilize the public's right of ways for their financial gain, charge well beyond a reasonable fee for their services; the public should get something in return besides a big bill for the exorbitant rates that Comcast and other utility providers are charging for what in essence belongs to the public first." Whew! Glad we have someone with a little commonsense running, that's all we need is another multi-million dollar mega project tearing up the City's streets for years on end, with little real gain in the end from all the money and effort. |
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Comment by
Sharon Fields
July 03, 2009
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A better approach
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I have been talking about a citywide fiber network for months. It's a fabulous idea. Unfortunately, now is a terrible time to be looking at this as we are starting out with a city budget that is $40 million in arrears. But I digress. I fully support such a network, last mile and all. If federal funds can be acquired, its viability is vastly improved. This network must be a public utility if for no other reason than we don’t want duplication of infrastructure. There are currently 450 miles of “dark fiber” in Seattle, installed by various telecoms languishing beneath the streets. We can start by having the City lease these lines. Following completion, the City would pay for the network by leasing this infrastructure to any new businesses that want to provide digital media services. This would create a new, competitive market for such services. As any good American knows, competition in business breeds many wonderful things. In a digital media market, it would provide lower prices, better products; more variety and a broader base of R&D. Who knows what online digital products and services are in our future? And imagine only paying for the TV channels you want instead of the laundry list that is foisted on you by Comcast. This also provides the added benefit of NOT having the City provide your digital media services. Keep in mind that these lines handle your television programming, your Internet connectivity and your phone services. People could still opt for Comcast, Verizon and Qwest but the point is that these markets would no longer be on exclusive contracts. It’s just so…American. Rusty Williams Candidate for Seattle City Council Position #8 |
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Comment by
Rusty Williams
July 04, 2009
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municipal broadband network for Seattle
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Municipal ownership of telecom networks is a long-standing issue in America. Running a telecom network would be a serious addition to Seattle City Government responsibilities, a jurisdiction that has more responsibilities than it can afford already. My perspective is close to that of Rob Atkinson and ITIF (Information Technology and Innovation Foundation), a progressive think tank in DC run by Rob that has dug deep on the issue. One of ITIF's recent reports "The Need for Speed: The Importance of Next-Generation Broadband Networks" puts it this way: "...communities seeking faster networks should if possible embrace public-private private partnerships with existing providers and not subsidize expensive 'overbuilding' projects when there is already an existing network in the community that can in almost all cases be upgraded to faster speeds more cheaply than building an entirely new network. In this sense it is far more cost effective to work with those providers to expand coverage than to subsidize a redundant third (or fourth) pipe to a community." Mayoral candidate Elizabeth Campbell is closer to this recommended approach than candidate Mike McGinn. |
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Comment by
John Niles
July 07, 2009
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Muni Network is a good idea
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Rob Atkinson's ITIF may be progressive in some ways, but when it comes to breaking the duopoly, he appears to be absolutely on the side of maintaining it. His claim that communities are inefficiently overbuilding slow DSL networks and overloaded cable networks with fiber to the home networks is akin to wondering why anyone would build an interstate when we have so many nifty dirt roads. It's all about getting from A to B, right? I have gathered a lot of reports on the results of publicly owned networks on muninetworks.org - and the evidence shows that communities who commit to it have benefited. |
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Comment by
Christopher Mitchell
July 10, 2009
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free wireless
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| By the time Seattle processes this idea, someone else will have already completed the project. | |
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Comment by
dunndh
July 15, 2009
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