On Sat, 30 Apr 2005, Bruce Ehlers wrote:

> :))  My spelling isn't the best... but I do know that my pants are loose
> and I'm probably a loser, but the sky isn't falling because of free
> wifi!
> 
> I still haven't heard anything to make me want to pay for your service.
> What do you provide besides the pipe to entice me to pay for your
> service? I can hitch hike or buy a car based on added value and need...
> where's your value? Why should people buy your service?
> 
> Complaining about government is easy, providing a valuable service that
> people are willing to pay for, is the real challenge.

Thank you for proving exactly my point. Joe Sixpack (you) does not care
about 'value added' services, he doesn't need any. He doesn't care about
advanced services, or competition, or monopolies, or getting best value
for his tax dollar. He only wants free stuff, to be paid by other's tax
dollars. In this case, stuff is broadband.

Even though there are many companies providing the service for reasonable
price, he would rather have it for free. The consideration of increased
taxes to support these 'free' services never enters his head. No, he'll
whine and moan that big bad government is increasing taxes while at same
time demanding more and more to be provided by the that same government.

Going back to free wifi:

a) There's no evidence that municipality can do better service than
existing companies, given the same conditions (in other words, if muni
gets guaranteed bond issuance, give the same guarantee to the company. If
muni gets free placement of antennas on the city property, give the same
right to other companies). 

b) There have been municipalities who, back in the 90s, tried to run
municipal fiber networks. Do you want to guess what happened with those?  
That's right, most of the large systems lost money and had to be sold for
peanuts just so munis don't have to spend insane amounts of money
maintaining it. Only the tiny systems survive.

See: 
http://www.macon.com/mld/macon/news/local/9268308.htm
http://lw.pennnet.com/News/Display_News_Story.cfm?Section=WireNews&SubSection=HOME&NewsID=102774

Note that in many of those "muni fiber"  utilities the construction of
fiber was done as a part of muni electric buildout, to manage and monitor
existing power networks, so the incremental construction costs were
minimal (or so the proponents claim). That does not apply here, wifi is 
essentially a new business entered by the municipality, with resulting 
start-up costs, etc.

c) Why create another monopoly? nycwireless of all mailing lists is filled
with complaints about existing monopolies (cable, dsl etc) and how they
are stifling competition, refuse to provide advanced services, have
restricting terms of service, etc. I don't see how creation of another
monopoly will be helpful. The progress is best served by opening the
market to competition - if city decides to construct such system, city
should concentrate on running the physical network, something that cannot
be done easily by outside company, and let competing internet providers
provide end-user service (such as internet bandwidth, email, customer
service, etc).

-alex

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