Thursday, March 24, 2011

More patient capital the key advantage of community telecom infrastrucuture

Craig Settles explains the advantages of community fiber telecom infrastructure in this Government Technology piece.  The key advantage over investor-owed infrastructure can be summed up in three words: more patient capital.  Telecom infrastructure built by local governments and cooperatives doesn't need a return on investment in just 3-5 years -- an inherent flaw of the investor-owed business model given the high capital cost of constructing and operating it. 

Settles correctly notes there is money to be made for private players -- if they are willing to partner with communities in open access fiber projects and abandon the outdated business model of 100 percent ownership and monopolistic control.

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