{"id":786,"date":"2007-09-21T06:38:00","date_gmt":"2007-09-21T06:38:00","guid":{"rendered":"https:\/\/mhgoldberg.com\/blog\/?p=786"},"modified":"2007-09-21T06:38:00","modified_gmt":"2007-09-21T06:38:00","slug":"city-owned-telecom-networks","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=786","title":{"rendered":"City owned telecom networks"},"content":{"rendered":"

\"Burlington<\/a>Earlier this week, Bill St. Arnaud<\/a> circulated a piece that describes the newly released business case study<\/a> on the fibre network built by the city of Burlington, Vermont.<\/p>\n

The piece starts off with a quote by the project leader, Tim Nulty, who is described with powerful CV credentials as: Former Chief Economist, U.S. Senate Commerce Committee, Former Chief Economist, U.S. House Energy and Commerce Committee, Former World Bank Senior Project Manager, Former Telecommunications Entrepreneur in Eastern Europe, … <\/p>\n

I\u2019m very familiar with many government owned telecom operations throughout the world, over many years, and across many different forms of government, and I can tell you that governments generally do not subsidize publicly owned telecommunications. They milk telecommunications – these systems generate a lot of revenue.<\/p><\/blockquote>\n

My frustration in reading the business case<\/a> is that the document then proceeds to describe a number of ways that taxpayers provide hidden subsidies to this project.<\/p>\n

Of course, they aren’t called subsidies and the business case authors don’t seem to recognize these benefits as costs to tax payers, but let’s look at some examples.<\/p>\n

The $2.6 million price tag for the first phase, a 16.5 mile fiber-optic system (144 strand single mode) was relatively low because Burlington owned the 2.5 miles of underground conduit and 33% of the poles needed for aerial cables.<\/p><\/blockquote>\n

In other words, the project received access to taxpayer owned infrastructure – a form of subsidy. <\/p>\n

BT brought in Koch Financial Corp. to finance the network and lease it back to the City via a tax-exempt municipal capital lease<\/p><\/blockquote>\n

Tax-exempt? Meaning less taxes generated? Does that sound like a taxpayer provided subsidy?<\/p>\n

Still – Burlington Telecom is an interesting case study for fibre to the home. Comments?<\/p>\n

Technorati Tags:
Burlington Telecom<\/a>, FTTH<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Earlier this week, Bill St. Arnaud circulated a piece that describes the newly released business case study on the fibre network built by the city of Burlington, Vermont. The piece starts off with a quote by the project leader, Tim Nulty, who is described with powerful CV credentials as: Former Chief Economist, U.S. Senate Commerce …<\/p>\n

City owned telecom networks<\/span> Read More »<\/a><\/p>\n","protected":false},"author":2,"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-786","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nCity owned telecom networks • Telecom Trends<\/title>\n<meta name=\"description\" content=\"Earlier this week, Bill St. Arnaud circulated a piece that describes the newly released business case study on the fibre network built by the city of • September 21, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mhgoldberg.com\/blog\/?p=786\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" 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