Larry Irving, who served as assistant secretary of Commerce for
Communications and Information and administrator of the National
Telecommunications and Information Administration (NTIA),
writes in The Hill that he is having a difficult time understanding why state and local governments are interested in building their own telecommunications networks.
The answer is self evident. Mr. Irving need only look at the situation in Montrose,
Colorado, described in
this Daily Yonder article -- which is emblematic of much of the United States. Investor-owned providers can't provide all premises reliable wireline Internet service and do so at a cost that affords good value for the consumer:
Montrose, a city of 19,000 about 65 miles from the Utah border, is a
typically conservative rural area, overwhelmingly Republican but with a
populist bent. Like all of the Western Slope of the state, it is not
participating in the robust economic recovery seen in the Front Slope
cities of Denver, Ft. Collins and Colorado Springs.
Internet
service here is currently a hodgepodge. Some of us depend on broadcast
towers, some on DSL from CenturyLink and some on cable service from
Charter. Service is generally at less than 10MB. It’s expensive, and
customer service is erratic.
It became clear to the city
leadership that none of the large corporate providers were ever going to
invest in high-speed broadband for the area. And while some
enterprising local startups have moved to provide high-speed fiber and
tower broadcast, they are capital-limited and have to charge high fees
to get even a modest return on investment.
That's why the citizens of Montrose gave their municipal leaders the green light to explore alternative business models that can bring fiber to the premises of Montrose residents. City leaders recognize that technologically, fiber is the future. But that future and its many benefits will be deferred -- perhaps permanently -- unless new business models are found to make it a reality.
Hats off to Montrose, Colorado. It is taking on one of the nation's toughest and most important problems. Former U.S. Federal Communications Commission Chairman Julius
Genachowski called it the "critical
infrastructure challenge of our generation."