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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    tmc (profile), 3 Nov 2009 @ 5:31am

    TDS should move itself up to Boston, MA... apparently Verizon doesn't want the millions of potential customers and wants to leech off the copper network at the same or higher prices that FIOS customers pay for next generation services. The precondition for Verizon to compete in their most competitive region (NY Metro) was that no other company can do line sharing the way it was on DSL. Fine, they got their concession, but in return what did consumers get? They got higher prices and anti-competitive moves and lack of innovation. Cherry picking and deployment commitments full of loopholes in exchange for video franchises. The time is now for these smaller carriers to cherry pick the best of what Verizon is casting off to the likes of fairpoint which WILL FILE BANKRUPTCY very soon and wipe billions of Verizon debt from it's books. Then once the best of MA is cherry picked, move onto Connecticut, Pennsylvania, Vermont, New Hampshire, Washington DC, etc.

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