Of course it comes from the Missouri Telecommunications Industry
Association, but IMHO they are right!


Last-mile demand should be first concern for broadband


RICHARD TELTHORST GUEST COLUMNIST

As hopeful applicants across the country scramble to take advantage of more
than $7 billion in federal stimulus funds to expand the reach of the
Internet, policymakers in Missouri and Washington need to watch carefully
how the money will be spent.

Taking a "ready, fire, aim" approach without good planning could waste
taxpayer dollars without bringing better Internet access.

The federal stimulus program to improve high-speed Internet service (known
as "broadband") has attracted more than 2,200 applicants looking for nearly
$28 billion - more than four times the amount allocated by Congress. In
Missouri, more than 60 applicants have filed plans to spend more than $1
billion on projects across the state.

Among those plans is an ambitious idea to build 2,500 miles of additional
"middle-mile" broadband network. That's the infrastructure pipeline for
delivering Internet access, but it doesn't include the connections directly
to homes and small businesses, known as the "last mile." This plan would
also give Missouri access to a portion of the network to carry government
Internet traffic.

State government's partnership in this private-sector project could
potentially hinder additional fiber deployment by telecommunications
providers in the state. Local Internet providers would be harmed if the new
network were used to provide access to providers in competition with others
or to bypass private providers and serve their customers directly.

Dozens of telecommunications companies have invested millions of dollars in
private capital to build a robust broadband network reaching all corners of
the state. More private investment is pending to expand this network even
further.  But using a state network to undercut or overbuild private
Internet providers or to subsidize the operations of particular providers
would reduce the incentives that the private sector has to expand services.
It's not the way public money should be spent - especially money that is in
short supply given the number of competing projects.
A recent industry study points out that the "middle mile" networks built in
Missouri by telecommunications providers, cable companies, electric
cooperatives and others have an extensive reach. A more detailed study of
this network in Missouri should be undertaken before federal funds are
invested. State government, using federal stimulus funds, should lead this
mapping effort.
Further network deployment to extend the "last mile" of Internet connections
to more distant customers is driven by demand. Demand depends on customers
understanding the value of a broadband connection and having a computer to
connect to the Internet. Federal stimulus money is also available to finance
projects to establish public computing centers, educate and train people in
computer skills, and help create the demand needed for further
private-sector investment.
These projects may not garner as much media attention as do "shovel-ready"
plans to plow more fiber across the state, but they are critical in bringing
more broadband access to Missouri. State policymakers should turn their
attention to these programs that build the business case for extending the
"last mile" of the Internet to all Missourians.
Richard Telthorst is president and CEO of the Missouri Telecommunications
Industry Association.
http://www.kansascity.com/business/story/1517715.html#none
<http://www.kansascity.com/business/story/1517715.html> 

They are right, we found fiber where MO says there is none.


Victoria Proffer
www.StLouisBroadband.com
314-974-5600






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