Rochester is looking at community broadband options. The story and views on the options are playing out in the pages of the Post Bulletin. They have been getting a range of letters to the editor.
Here’s a quick look on the story…
The Rochester City Council and Rochester Public Utility Board have each heard conceptual presentations from private companies about the possibility of adding broadband service as a utility. Phone and cable television services could be added, as well. …
The report included a capital investment of about $53 million on the city’s behalf, a cost that would have to be issued in bonds, raising the total investment to near $67 million.
Alcatel-Lucent’s assumptions were also based on the new public utility securing a 30 percent market share of internet customers. While a low-cost and lower service option would see customers pay about $10 per month for broadband internet service, the study showed about 58 percent of customers paying $50 or more per month for service.
Given a 30 percent market share, Alcatel-Lucent projected the utility would be cash-flow positive within about four years, depending on whether phone and cable services were included.
They are deciding whether to move forward – and again they are getting feedback from a lot of people. Here’s a sample – in reverse chronological order:
Chris Mitchell from the Institute from Local Self Reliance supports the idea, pointing out that lack of local competition is an issue…
According to the Federal Communications Commission, 3 out of 4 Americans only have one choice of high-speed Internet provider. If you hear claims that Rochester has many providers, dig deeper. Those statistics are aggregated, which means that while you could have four different providers in a single neighborhood, most homes probably only have access to one or two of them.
And the wealth of neighboring competition…
Another challenge that Rochester faces is that some nearby communities like St Charles have HBC, a private provider from Winona with an excellent reputation, that is expanding a gigabit fiber-optic network throughout smaller towns in the region. Those communities will increasingly draw high-tech people out of Rochester, trading a commute for far better Internet access.
And encouraging Rochester to keep investigating…
Just don’t let anyone fool you into thinking the choice is between borrowing $67 million and doing nothing. …
At the Institute for Local Self-Reliance, we are tracking more than 450 local governments that have made some kind of investment in better access. Some, like Cedar Falls, took on greater risk and debt to rapidly build a citywide network. Others, like Auburn in Indiana, adopted an incremental, multi-year approach.
Mike Schlasner also supports the move forward…
If we are not satisfied with our providers, we have the option of creating a community-owned broadband network. In fact, a 2015 Rochester Public Utilities survey indicates 76 percent of residential customers want RPU to investigate offering Internet service. …
It’s time for the Rochester to envision a new broadband future, one in which affordable, world-class broadband is available to all residents and businesses.
Nanct Bratud, Post Bulletin Advisory Committee Member, lists access to broadband as a way to make SE Minnesota better.
Annette Meeks, from the Freedom Foundation of Minnesota does not support a community broadband effort citing
One reason for the failure of these Internet systems is the rosy projections offered to local officials in the form of free studies that show the local community is clamoring for faster speeds and better service based upon low construction costs estimates. The reality is that nearly every one of these assumptions is wrong, and it doesn’t take a lot of wrong assumptions to do a lot of harm to bond holders and taxpayers.
She encourages the City to spend with private providers instead…
Rather than risking and diverting precious Rochester taxpayer dollars on a questionable plan to construct a city-owned network, elected officials would be wise to consider advances underway by private sector Internet providers and to work with those providers who seek to better serve the city with greater innovation that Rochester desires and deserves.
Rochester City Council member Michael Wojcik recognizes broadband as a tool to attract news workers to the area…
“You have to look at what are successful communities doing to attract people, and what are we failing to do?” Wojcik said.
Wojcik singled out new technologies and public resources to be developed, including ride-sharing services like Uber, living options like Airbnb, population-dense environments oriented to public transportation, bicycle-friendly infrastructure and quality broadband internet access.
Brent Christensen from the Minnesota Telecom Alliance doesn’t support community broadband and encourages the city to look at existing private providers…
The current competitive market is important to consider because it will impact success, or more likely, the financial failure of a government-owned telecommunications network in the city.
An Editorial from the Post Bulletin staff encourages greater exploration…
Rochester Public Utilities staff was tapped to review the findings since the utility company would likely oversee the service, if adopted. Peter Hogan, RPU’s director of corporate services, said some of the estimates appeared flexible and more study was needed, which he estimated would take about 18 months and could cost nearly $1 million.
Council members were understandably hesitant to write a check, especially since efforts would also need the approval of RPU’s board of directors, but they did indicate support for moving forward in the quest for more answers.
It’s the right move. We’d encourage the council and RPU board to make every effort to explore the costs and benefits of installing municipal broadband Internet services as a way of ensuring our community stays effectively connected to the world around it.
Considering Rochester’s economic dependence on science and technology, having access to the highest speeds possible is crucial to the city’s future. Unfortunately, existing services lag behind those being offered in other cities, putting Rochester’s businesses and residents at a competitive disadvantage.
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