But Wait, Wasn't Muni-Fiber Supposed To Take Away Incentive For Private Fiber?

from the caught-in-a-lie dept

Over the past few years, there have been numerous lawsuits by telcos against various municipalities that have decided to launch municipal fiber broadband projects. Most of these lawsuits have failed -- but the main argument from the telcos is that it's unfair to have to compete against the government, and it would take away incentives for the telcos to actually invest in infrastructure to provide for those towns. Of course, that doesn't make much sense. That would mean that any competition would decrease incentives to invest. One of the nastier legal battles took place in Monticello, Minnesota, where the local telco TDS fought hard (and lost) its battle to stop muni-fiber from showing up. But, now, suddenly TDS is announcing its own fiber broadband, giving people 50 Mbps service for $50/month. What's the likelihood that TDS would have done this if it didn't have competition from muni-fiber? The reason municipalities look to muni-fiber is because there isn't enough competition and the telcos aren't investing in infrastructure (or really serving customer needs). So the end result here is that by introducing more competition, consumers and citizens are better served. So what's the problem with it again?

Filed Under: broadband, competition, muni-fiber
Companies: tds


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  1. identicon
    Jon, 2 Nov 2009 @ 11:00am

    "Public Option"

    As much as I hate our government for wasting $$$ on so many stupid things. Then wasting money on good things with poor management, the private sector is in it to make money. They are not in it to give less dense areas service. They don't want an install bleeding the company forever. That said, i'm not sure a government option may be the best way to improve our infrastructure, but it is the only way until someone comes up with a better idea. I can GUARANTEE that the cable/telco companies will not do it without a substantial push.

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