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A state-run enterprise is to me not preferable over a healthy market, but it is almost always preferable over a private monopoly. As a citizen you have no leverage over a monopoly, whereas a state-run enterprise still has a democratic feedback loop.

Also, the Republican small government platform goes much further than just railing against government-run enterprise: it essentially states that all government intervention in the economy is bad (both morally and from an effectiveness standpoint; the effectiveness angle is crucial to make their platform appeal to enough people).

In the case of ISP monopolies in rural areas leading to low quality and high costs, I think it doesn't seem likely that the free market will solve this problem by itself any time soon. So politicians without a small government ideology might consider methods such as good old breaking up monopolies or other antitrust measures. Of course, this can not be done at a local level, and if small government ideologues are in power at the state level, this approach is dead in the water.

So if you're a local government and you want to attack this problem, what are your options? Municipal broadband is the only approach I can think of that's within the reach of a city council. So yes, it's a band-aid, but it's the best you can do as long as the state-level is run by small government ideologues.



The main question is why US ISP market is often described as private monopoly, while in other countries there is significant market competition. Start and run small wISP is easy, these can naturally grow to bigger ones, especially when there is no real competition.

> So if you're a local government and you want to attack this problem, what are your options?

First, do not obstruct. High easement prices for fiber installations, long bureaucratic procedures for building permits for fiber installation, forbidding of overhead fiber cables ...

Ensure that for new constructions there is passive infrastructure (e.g. microducts or dark fiber) that can be leased to ISPs on per-subscriber basis.

Encourage citizens to start a local co-op working as ISP.


What is a municipal government if not a “local co-op”?


A local co-op is a fully private entity that has no power over non-members, while a municipality is a governmental structure with powers of local ordinances and taxation.

On a more practical level, a local co-op ISP is a single-goal entity, whose participants are persons interested in that goal (getting good Internet connectivity). A municipality has many tasks, and municipal broadband would be just a small part of it.


Should we also then have a local road coop? What about a local water pipes and sewers coop? What about local school districts coop?

Why are some single-goal entities the right decision, why are other decisions better solved by a multi-goal entity?




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