{"id":3757,"date":"2010-07-15T06:26:01","date_gmt":"2010-07-15T10:26:01","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=3757"},"modified":"2010-07-14T10:50:33","modified_gmt":"2010-07-14T14:50:33","slug":"governments-cant-run-networks","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=3757","title":{"rendered":"Governments can’t run networks"},"content":{"rendered":"

Governments can’t run networks.<\/p>\n

It seems that our collective memories are short.<\/p>\n

There was a time that most of the world’s telephone networks were agencies of the government: PTTs – Posts, Telephone and Telegraph departments. Those agencies were real life examples of how effectively – actually, how ineffectively – communications services could be delivered by governments. Indeed, the migration to mobile, with high adoption rates outside of North America, was stimulated in part by citizens revolting against pathetic landline networks that were built and operated by their government-run telcos.<\/p>\n

The Digital Economy consultation provided a predictable opportunity for some closet Marxists to\u00a0put\u00a0away\u00a0their anti-corporate protest posters and call for a return to nationalized\u00a0communications networks. [The submissions can be found here<\/a>]<\/p>\n

The submissions are more subtle – perhaps learning from the recent G20 that the public has trouble sympathizing with black-hoods\u00a0rampaging through the streets – but the message from these folks is that big businesses are bad; only governments can make the necessary investments to do right.<\/p>\n

WRONG!<\/p>\n

Government\u00a0may be\u00a0have been great at initial investments – the oversized cheques create photo ops that are important for re-election – but one look at our roads and electric grid will hopefully remind you that the public sector does a lousy job at ongoing maintenance, repair, upgrading and continuing capital planning. It is partly because government accounting doesn’t distinguish between capital and operating expense – a buck is a buck – and partly because routine maintenance can be deferred in favour of emergency snow removal or sewer repairs.<\/p>\n

And let’s not forget the multi-zillion dollar deficits that aren’t really conducive to massive capital investments in communications infrastructure and operations. All those in favour of tax increases, please board the next flight to Greece.<\/p>\n

Anticipating a rush to find counter-examples, let me offer up Sasktel – Canada’s last provincially owned crown communications company. It is,\u00a0sans doute<\/em>,\u00a0a leading performer\u00a0in the sector. Sasktel offers a quintuple play: landline and wireless voice, internet, TV and premises security. It has always led in fibre optic deployment in its backbone and it offers broadband internet to every home and business in the province.<\/p>\n

Which begs the question: why is this an exception? Why has Sasktel been able to succeed where so many others have failed?\u00a0Academics – can we get some research on this?<\/p>\n

That solitary counter-example isn’t sufficient to change the overwhelming pattern of failure of governments to run public works effectively. The power blackout in Toronto<\/a> last week provides an exhibit of how public works most often just don’t work for the public.\u00a0<\/p>\n

Those submissions that call for government investment in community networks are asking for our tax dollars to be bet on\u00a0the spin of a roulette wheel. Those are lousy odds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Governments can’t run networks. It seems that our collective memories are short. There was a time that most of the world’s telephone networks were agencies of the government: PTTs – Posts, Telephone and Telegraph departments. Those agencies were real life examples of how effectively – actually, how ineffectively – communications services could be delivered by …<\/p>\n

Governments can’t run networks<\/span> Read More »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","two_page_speed":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3757","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nGovernments can't run networks • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Governments can't run networks. It seems that our collective memories are short. 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