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





Begin forwarded message:

From: Jock Gill <jg45@xxxxxxx>
Date: December 3, 2004 9:43:14 PM EST
To: Gerry Faulhaber <faulhaber@xxxxxxxxxxxxx>, Farber Dave <dave@xxxxxxxxxx>
Cc: Hendricks Dewayne <dewayne@xxxxxxxxxx>, Jock Gill <jg45@xxxxxxx>
Subject: Re: [IP] More on: Rendell caves and signs HB30 - Verizon can prevent municipal networks statewide

Gerry,

You are very welcome.

I think we can agree that there is no perfect solution. Your mention of TVA reminds me of the conditions in 1935 when FDR felt obliged to create The Rural Electrification Administration

"Morris Cooke, an electrical engineer and advisor to the Power Authority of New York, pointed out this notable difference between rural and urban life to Congress. In his now famous “12-Minute Memo,” he made the case for the federal government to get involved in rural electrification: how it would increase farm production (irrigation/milk refrigeration), improve the standard of living, and how it could be accomplished at a reasonable cost.

Cooke gained national attention in Pennsylvania when the Governor commissioned him to conduct a feasibility study for electrifying rural areas of the state. The state legislature voted against Cooke’s proposal, but when FDR was elected governor of New York, he hired Cooke to study the St. Lawrence River’s hydro power potential for providing electricity for businesses, residential areas, and farms in the future.

[Would that the current Governor of the fair state of PA knew his history!]

Cooke’s paper convinced President Franklin D. Roosevelt (FDR) that the federal government should promote rural electrification. In response to the memo, FDR’s first act was to establish the Rural Electricification Administration (REA) in 1935, appointing Morris Cooke the head of the REA and providing $100 million for rural electrification. In today's dollars including inflation, that would equal approximately $1.3 billion – SOURCE: Consumer Price Index."

< http://www.basinelectric.com/Profile/Companies/History/ >

And of course, LBJ rode the electrification of West Texas to a life time of politica power. See "The Story of the sad Irons".

"Tuesday was ironing day. Well, I don't intend to take you through the entire week here, but I'll never forget the shock it was for me to learn how hard it was to iron in a kitchen over a woodstove, where you have to keep throwing the wood in to keep the temperature hot all day. The irons--heavy slabs of metal--weighed seven or eight pounds, and a Hill Country housewife would have four or five of them heating all day. In the Hill Country it's nothing for the temperature to be 100 or even 105 degrees, and those kitchens would be like an oven. The women of the Hill Country called their irons the "sad irons." I came to understand why."

<http://hnn.us/articles/685.html>

And of course Truman had to extend this to cover telephony in 1949.

"1930–1950
In the 1930s, the Great Depression descended upon America and prevented many rural subscribers from being able to afford telephone service. As a consequence, many rural telephone facilities deteriorated and fell into disarray. In short, poor phone service in the 1930s and 1940s became the standard in rural America. By 1949, only 39% of rural Americans had telephones.20 This state of decline prompted the federal government to establish a telephone loan program modeled after the successful electric programs that were launched under the Rural Electrification Act of 1936 (RE Act). The so-called telephone amendments to the RE Act were signed into law by President Harry Truman on October 28, 1949. These amendments have provided the necessary financing for the evolution of rural telecommunications from a patchwork of old and broken down
equipment to a landscape of modern technology."

The above from a White Paper at: < www.ntca.org/content_documents/white_paper-1.pdf >

So we have a very successful history of public sector involvement in the development of reasonably equitable and reliable national power and telephony grids.

And now we see the Japanese committing $47 billion dollars for 10 gigabit infrastructure to be in use by 2010. This is $47 billion for an area the size of California.

The problem is, as we all know, that no private company can invest the funds necessary to bring all Americans every where 10 gigabits of connectivity in any reasonable time frame - much less by 2010. So is America to fore go 10 gigabit connectivity simply because the private sector can neither fund it nor justify it in terms of ROI within tactical time frames? Is our national commitment to innovation to be held hostage by a corporate market dogma?

Or are we going to find innovative ways to leverage individual customer premise equipment investments, as in the PC revolution ala David P. Reed's analysis, with private sector and public investments to get the job done by 2010? Can we invent a solution that is greater than the sum of the parts and transcends the limits of corporate, individual or public financing alone?

Regards,

Jock

Jock Gill
Meme Intelligence
http://public.xdi.org/=Jock

On Dec 3, 2004, at 7:05 PM, David Farber wrote:



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.

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