April 18, 2024

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Should You Wish For City-Owned Internet Access?

3 min read
Internet

For a long time now, people have been lobbying for city-owned and municipal-owned internet access. That shouldn’t come as a surprise, because most people aren’t actually in love with their cable and internet providers. Most have bad reputations that, even though they have improved their management tools, offerings, and coverage, they can’t outrun.

Still, most people have very few options when it comes to the cable or internet company they want to use in their homes or businesses. Most Americans only have access to two or three different options, and usually only one of those options meets FCC speeds. 

Why Is There A Need For Municipal Internet Access?

Particularly in urban areas and locations with high poverty levels, there has been a push for municipal broadband. This means that towns and cities actually launch their own internet service providers to serve everyone within the community. This has also gained some popularity in rural communities that are largely underserved as well. However, there are a few problems: federal and local laws often discourage local governments and municipalities from taking the necessary steps.

Another issue is that this is a bigger undertaking than most people anticipate, and it requires a lot of organization, connections, and time – which most municipalities don’t have.

Where Could Municipal Internet Work?

Even so, are internet service providers continue to make the news for not great reasons, more and more people are considering it. Most municipal broadband companies that do exist tend to get pretty great ratings because they are catering to a homogenous community. They are able to cater the services and offerings to a specific subsection of the population that probably wants some of the same things. 

The problem continues to be whether or not municipalities can meet the needs of their residents while still remaining competitive and efficient. There are tools that will help them, but smaller companies simply don’t have the overhead to keep everything up and running, at least at first. That prevents people from signing up. Then, areas that do have some of the bigger internet and cable providers end up keeping them instead.

It’s all about name recognition and even if, by some miracle, a municipal-owned ISP can provide everything that a bigger name can, they will still struggle to get customers.

Why Aren’t There More Municipal Internet Service Providers?

There are a ton of people who are against municipal services, including bigger tech companies. However, for the local economy, municipal broadband can be a bit of a risk for taxpayers. Public broadband companies are very likely to have issues covering their operating costs for at least the first decade of usage, and that is if they don’t need to be updated or repaired at all – and they will be. 

There are good reasons why internet service providers aren’t popping up all over the country and instead, we get the same few options. It is because there just is too much overhead to start up and the smaller companies tend to consolidate to even have a fighting chance. It costs a lot to get started, there are already so many monopolies in place, and too often, companies are essentially run out of town by the big guys.

Still, municipalities do have some options. They can band together and decide it is a choice they are going to make.

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