Municipal Broadband - Advantages

Advantages

Municipal broadband offers a number of advantages to consumers and to the economy. Such networks often provide high speed Internet access for free, if not more cheaply than other current broadband service providers. Different cities adopt different models according to their needs. In the case of St. Cloud, Florida's, a municipal broadband network offers free access to everyone as does Philadelphia, Pennsylvania. Municipal broadband not only provide high speed Internet access for free it also lowers prices, creates competition, and boosts economic development. These advantages help keep prices down and networks functioning efficiently. Municipal broadband companies are faced with a constantly changing and highly competitive market with many operators. This keeps prices down and makes broadband affordable in rural and low-income communities. In a 2004 White House report, the President called for "universal, affordable access for broadband technology by the year 2007" and "plenty of technology choices when it comes to purchasing broadband".

Worker productivity can also increase as a result of municipal broadband by giving city officials such as police officers and firefighters remote access to information. Intelligent transport systems rely on fiber-optic infrastructure to network and manage thousands of traffic signals in large metropolitan areas every day. Building inspectors can issue reports and access networked data while conducting inspections. Public buildings in remote areas can be connected through Wi-Fi without the expense of fiber or private telecommunications contracts. Police officers can access security cameras, blueprints, criminal records and other necessary information. Networks can allow officers to show witnesses mug shots or "virtual lineups" at the scene of a crime, instead of at a police station. The Department of Homeland Security provides funding for cities that use municipal networks for these applications.

Not only does municipal broadband help public servants with their jobs, it also helps close the digital divide. Such services help bridge the gap by providing people with public access to the Internet. This allows low income families, travelers, and city officials to access important information without budgetary considerations in mind. The importance of free Internet access is based on information availability, for example students with no home based access are able to log on to the Internet using municipal broadband. Commentators hope that municipal broadband networks will make cities more attractive to businesses, especially high-tech and research companies, which are dependent on communication. Communication also enables small and home-based businesses to participate in international and regional commerce. Municipal broadband also allows companies to recruit new employees who can telecommute without physically relocating.

In 2000, the Federal Communications Commission endorsed municipal broadband as a "best practice" for bringing broadband to under served communities. The FCC also addressed the question of whether a municipality was an "entity" under the Telecommunications Act which mandates that "No State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service." 47 USC 253(a). The legal question revolved around whether a state could prevent a municipality, as its subordinate government body, from entering the telecommunication market. In the case of Missouri Municipal League v. Nixon, the U.S. Supreme Court concluded that a municipality was not an entity under the Telecommunications Act and that a state could determine what authority its own subordinate jurisdictions had.

Governments have the advantage of being able to take a long term view and write off investments in municipal broadband over longer time periods. Private companies on the other hand, especially publicly traded ones, have to show profitability in a very short period. This indicates that governments are the best entities to create a broadband network—as infrastructure—then allow private companies to run it and deliver services such as IPTV, telephony and Internet access. In this way, governments are able to create a competitive environment where the network owner does not determine which services consumers can receive. "Structurally separation" or "functional separation" are terms often used to describe broadband as infrastructure that is open to all service providers. Governments may also be driven by their desire to lay down critical broadband infrastructure that serves a larger constituency made up of individuals, small businesses, schools, government entities and service providers. Building open-access local broadband networks can help with the infrastructure of a town and provide benefits to the townspeople that compensate for the costs involved. Having a publicly owned infrastructure provides a positive outcome in economic development as it attracts more locally owned businesses who can rely on high speed Internet connections to help their businesses. Such networks also deliver ubiquitous coverage in areas where private companies cannot own and operate public broadband networks. Enhanced services are included whereby townspeople can benefit from a greater diversity of value-added products. Security is a further issue with the need for a reliable integrated high-speed communications infrastructure at both a national and a local level necessary for hospitals, schools, businesses etc. to provide a quick and large-scale responses to emergencies.