Claims Versus Reality
CLAIM:
Limiting Community Broadband Networks will spur private sector investment
REALITY:
There is no evidence that private sector investment has resulted from any state barrier. However, many communities have seen increased investment from the existing cable or phone company after the community built a network. Competition drives investment.
CLAIM:
Community Networks have unfair advantages
REALITY:
The many advantages of massive, multi-billion dollar companies outweighs any of the advantages any local town has. Local governments are already heavily regulated and cannot discriminate against private providers if the community builds its own network. This video examines the advantages of the public and private providers.
CLAIM:
Community Broadband Networks Always Fail
REALITY:
Community broadband networks have an excellent track record despite the few failures constantly cited by cable and DSL companies in an effort to discredit the entire approach. The nation’s best citywide broadband networks are publicly owned – including (but not limited to) Chattanooga’s Gigabit in Tennessee and Lafayette’s LUS Fiber in Louisiana.
CLAIM:
Private providers are fearful of having to compete against their regulator.
REALITY:
Local governments do not regulate telecommunications providers — such regulation is done at the state/federal level. To the extent that local governments maintain the public rights of way, federal and state laws require acting in a nondiscriminatory, competitively neutral manner. See Deceptive Myths about Municipal Broadband.