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[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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