Submitted by acohill on Wed, 12/15/2010 - 15:40
More information about the financial problems of the city-owned Burlington Telecom (Burlington, Vermont) venture are emerging. Opponents of community broadband will be eager to hold this up as the latest "proof" that community-owned telecom does not work.
What is odd about arguing that communities should stay out of telecom is that the alternative being proposed is basically, "Stick with the 20th century business models that have failed utterly to meet broadband needs in the U.S." So some pioneer community broadband projects have had problems. Anyone remember Adelphia? Anyone remember the hundreds of other cable companies that have failed or been bought up because they were struggling financially?
The opponents of community broadband have nothing, nothing to offer except "stick with what we know has failed." As opposed to, "Let's try some new models and learn what works." It is a very feeble argument.
Projects like Burlington Telecom and Utopia (which is now back on track and so not mentioned so much anymore) are providing valuable best practice information for other community projects. What can be learned from the BT effort?
The BT auditors have said they don't see how BT can repay its debts, but they probably only did an analysis using the existing customer base. We run the numbers on community broadband ventures all the time, and modest increases in the customer base can make a big difference in paying off debt over ten or fifteen years. Auditors are not usually going to engage in speculative analysis, but it is incorrect to read too much into the audit conclusions. BT can overcome their problems with good, open management and a sharp focus on increasing their customer base.
Design Nine provides visionary broadband architecture and engineering services to our clients. We have over seventy years of staff experience with telecom and community broadband-more than any other company in the United States.
We have a full range of broadband and telecom planning, design, and project management services.
Free Fiber to the Home
Save NC Broadband
Blandin on Broadband
Intelligent Community Forum
FCC Broadband Blog
KGP Broadband Stimulus
Ars Technica Tech Policy
Bill St. Arnaud
Stop the Cap
Broadband Policy Watch
Lafayette Pro Fiber