[IP] More on: Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide
Begin forwarded message:
From: Gerry Faulhaber <gerry-faulhaber@xxxxxxxxx>
Date: December 3, 2004 4:16:28 PM EST
To: dave@xxxxxxxxxx
Subject: Re: [IP] More on: Rendell caves and signs HB30 - Verizon can
prevent municipal networks statewide
Thanks, Jock, for your informative response. As I mentioned at the
very front of my note, I really don't like this legislation. I think
letting municipalities in otherwise unserved rural areas build their
own BB is a great idea. I'm glad rural Washington has had this
opportunity and I wish the rural areas of Pennsylvania eventually have
the same choice.
But it is still true that many municipalities are not quite so
enlightened. Certainly Philadelphia public monpolies pretty much suck:
PGW, SEPTA, trash collection, PHS, ... Can't think of a single good
one, except perhaps Fairmount Park Commission. They may end up
supplying those areas that Verizon and/or Comcast will not serve, and
that's a good thing which I support. But not all of us are fortunate
enough to have such enlightened town fathers as Belmont, MA. In fact,
I think most of us are not; there is an extensive economics literature
on how anticompetitive public monopolies can be, even worse than
private ones.
I am actually much closer to Bill St. Arnaud's position. What would be
far preferable is a more competitive market for BB, which in fact
municipalites can certainly help with. Public monopoly supply seems to
me a last resort for the unserved, such as the TVA.
Professor Gerald R. Faulhaber
Business and Public Policy Dept.
Wharton School, University of Pennsylvania
Philadelphia, PA 19104
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