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[IP] A Clash of Principles in Philly





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From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: December 6, 2004 6:50:32 PM EST
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] A Clash of Principles in Philly
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A Clash of Principles in Philly

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Dec 6, 2004
By:  Robert Poe
America's Network Enews
<http://www.americasnetwork.com/americasnetwork/article/ articleDetail.jsp?id=136801>

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The words "idealistic" and "industry" don't often appear side by side in a sentence. But in reality, the telecommunications industry is one whose products almost universally benefit people ‹ unlike, say, the donut industry. That fact sheds light on the recent dispute between Philadelphia and Verizon over the city's plan to offer public Wi-Fi service, casting it as a clash of two historically contrasting principles, each aimed at improving people's lives by helping them communicate better. We can expect more such clashes in the future.

The dispute revolved around a proposed Pennsylvania state law, two years in the making, that would prohibit government entities at any level from offering public broadband services without first giving private providers the chance to do so. Verizon and other carriers backed the law, which also provided funding to boost broadband Internet access for institutions like libraries and schools in the state.

Philadelphia realized that the law could allow Verizon, which offers EV-DO high-speed wireless data service over its cellular network, as well as DSL, to veto the city's plan to provide a city-wide public Wi-Fi service. So it raised such a ruckus that Governor Ed Rendell held off on signing the bill into law until Verizon signed an agreement promising not to block the city's plan. Verizon signed just before the end of the legislative year, and so did Rendell.

The principle behind the law was the same one that sparked the communications revolution of the past several decades. It calls for leaving it to private companies to compete to provide communications services to the public. The tidal wave of deregulation and privatization of monopoly and government-owned telecom carriers it inspired has transformed telecommunications. It has brought everything from mobile phones that feel nearly weightless to global voice and data services that, compared to their past prices, seem nearly free. The results are hard to argue with.

Philadelphia's plan, though, represented an equally important principle: a government's responsibility to make sure its citizens can communicate in the ways they need to in order to get by and get ahead. And the fact that the city, like many others, decided to offer high-speed Internet access as a public service shows the extent to which the Internet has become a basic necessity of life, almost like the telephone itself.

But while well-established procedures and systems of cross-subsidization ensure that everyone can have a telephone, even where it won't turn the provider a profit, nothing ensures that individuals can have access to the Internet. And that is a big problem for low-income citizens. According to Christopher Baum, a Gartner analyst, while 60% of all U.S. homes have Internet access, less than a quarter of homes with incomes under $15,000 do.  As a result, "I think the best approach is to realize that there are people companies aren't going to serve, and that there has to be some kind of formula to make sure those people get served," he says.

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