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[IP] Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide





Begin forwarded message:

From: "David A. Maltz" <dmaltz@xxxxxxxxxx>
Date: December 1, 2004 10:33:30 PM EST
To: Declan McCullagh <declan@xxxxxxxx>, dave@xxxxxxxxxx
Subject: Re: [IP] Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide

I'm guessing I've been quoted on IPers, so please let me first correct the attribution of the text that may have been posted under my name. I quoted that material from the Dec 1, 2004 issue of FierceWireless by Stephen Wellman <stephen@xxxxxxxxxxxxxxxxxx>, www.fiercewireless.com

--On Wednesday, December 01, 2004 5:05 PM -0500 Declan McCullagh <declan@xxxxxxxx> wrote:

I don't believe this claim is true. The law applies only to
municipalities providing Internet service in return "for compensation" --
that is, a fee that subscribers would pay. This is Verizon's reading as
well, they told me today.

Pennsylvania, like most states, has a number of home-grown municipal broadband initiatives, both wired and wireless. In places like Kutztown and Bedford these municipal networks have been meeting local demand, often exceeding the service level provided by other companies even in more populated parts of the state. This law limits the business models under which additional municipal networks can start up, making it harder for them to do so by adding the uncertainty of a potential legal challenge to the already substantial technical and financial risks.

I believe there is a world of difference between "for compensation" and 'for profit'. Any municipal corporation installing and operating a network, wired or wireless, may incur real costs and it seems to me that they should not be precluded by state law from recouping those costs in whatever manor the residents of the municipality see fit. Whether to chose to tax themselves, rely on donations, or charge a fee could have been left as a matter for the local residents to decide.

Dave Maltz

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