Municipal broadband developments are not isolated projects anymore.
According to Analysis Research, a British market research firm,
government led investments in broadband technology show more and
more an international tendency. Concerns of communities worldwide
of a constant evolution of Internet infrastructure would "enhance
competition through increased consumer choice and result in better
customer service," said Analysis analyst Hugh Kelly.
He believes that "governments are in the position to correct
failures of the private sector" in regards to installation
of fiber optic technology. Since broadband is increasingly important
not only for businesses to make a choice for their locations, but
also for residents who demand high speed Internet access, municipal
broadband is a "good development".
Analysis outlines a range of business models for municipal broadband,
including governments being just the infrastructure provider or
also being the service provider. In the case local governments provide
broadband services such as cable TV, phone service and Internet
access, "such developments can be a clear threat to larger
telecommunications companies," said Kelly. The main reason:
Local governments have a financial advantage: "They do not
need to prove great performance to their shareholders. They just
need to break even," Kelly explains. For that reason it was
not problem for municipal broadband services to compete successfully
with large and established telecommunications companies in the short,
mid and longterm.
Source: Fiber For Our Future exclusive
Media Contact: Annie Collins 630-761-2978