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Business & incomeExperience excerpt · English

We’re not talking about economically inefficient ghost towns

We’re not talking about economically inefficient ghost towns. We’re talking about large telco not being interested in building out fiber because the _profit_ wouldn’t make a blip on their spreadsheets and thus wouldn't drive the type of growth their shareholders are looking to see reflected in their company OKRs or whatever. The deal with these protected monopolies, when the public grants them, is that the receiver is required to build out infrastructure to serve all the citizens who granted them the privilege of planting poles or digging trenches all over their public property (for comfy profit) in the first place. However those incentives are at conflict with a for profit charter as you understand. We’ve done a woefully terrible job holding these companies accountable for building and investing in infrastructure even when it wouldn’t be convenient, which has been demonstrated time and again as people are raising in this thread. These telcos literally take billions in gov’t grants and sit on them saying “we tried it was too expensive, moar $$ plz”, which is complete and utter BS. …

Original discussionWe need a permanent solution for universal broadband access70 source comments · at import
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CO

I don't think you can really argue that there is "public good" in building essential infrastructure wastefully and inefficiently. Ghosts towns and abandoned towns have always been a thing, since the dawn of civilization. They're abandoned usually precisely because it doesn't make sense to invest in infrastructure there - a railroad, a post office, a port, an electric plant. This isn't new. It's okay if cities die. The people that lived there aren't dying too. They're moving elsewhere, where they have better access to infrastructure and services. There's nothing wrong with that. And we shouldn't be wasting money to prevent it.

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XN

> The deal with these protected monopolies A lot of the problems seems to be that Internet service doesn't need to be a full monopoly. Separate the organization that tears up the ground and from the one that provides data service.

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CO

All the same "profit" arguments you're making against Telco's hold equally well against Starbucks or Home Depot or anyone else for that matter. Bad, risky investments are bad and risky no matter how much you try to subsidize them. I agree that throwing tax money at corporations without clear deliverables is bad policy. It's also bad policy to waste taxpayer dollars building bridges to nowhere, which is precisely what broadband access in the middle of nowhere is. Access to infrastructure makes places more desirable to live. It increases property values, which in turn encourage more development. I get it. I understand why local governments throw incentives to telcos to artificially make their cities more attractive and lucrative for business. It's not just telcos. We do it for sports stadiums, factories, movie productions. By and large, these policies end up being wealth transfers from the…

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