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Reason's Adrian Moore testifies before Congress.

Reason's Adrian Moore testifies before Congress.

Telecommunications and
Municipal WiFi & Broadband

"Thank goodness for Reason.... one sane voice fighting tons of nonsense." - John Stossel, ABC's 20/20

iProvo's Losses at $8 Million and Counting
At what point do taxpayers cut their losses?

iProvo has already posted over $8 million in losses according to a new Reason Foundation policy brief that concludes that Provo is destined to join a list of cities like Ashland, Oregon, and Marietta, Georgia, that have "thrown away millions of dollars on broadband projects that, in the end, failed to deliver any of the promised benefits." iProvo's total losses are likely to exceed $10 million by the end of this fiscal year - and that figure doesn't include the $39.5 million borrowed to launch the project, most of which still needs to be paid back. The Reason Foundation report says Provo "faces the dilemma of continuing to fund iProvo with no break-even point in sight, or it can sell and recoup as much of its investment as it can." "Provo's taxpayers are being fleeced," said Steven Titch, policy analyst at Reason Foundation and author of two reports on iProvo. "The only question is how much of this fiscal recklessness they are willing to take before saying 'enough.'" In 2003, iProvo lost $1.3 million in taxpayer money. It posted a $1.4 million loss in 2004, a $1.6 million loss in 2005, another $1.9 million loss in 2006, and in 2007 iProvo was over $2 million in the red. That's over $8 million in losses, and things don't look much better for 2008. In January, iProvo posted a net-gain of just 29 subscribers and could be headed for over $2 million in losses again this year.

» Press Release
» Policy Brief (.pdf)
» 2006 Study: An Analysis of Lessons Learned from iProvo's First 18 Months of Municipal Broadband (.pdf)

Beware of Tech Geeks Bearing Gifts
Former FTC deputy director of policy planning
wary of municipal broadband plans


With hundreds of local governments considering getting into the broadband business, a new report warns that cities shouldn't fool themselves into believing that their experience running water, gas and electricity systems has prepared them for the fast moving Internet world. The Reason Foundation study written by Jerry Ellig, former deputy director and acting director of the Federal Trade Commission's Office of Policy Planning, outlines seven key factors that municipal officials should fully address before moving forward with plans for municipal broadband and Wi-Fi to ensure that the projects are technologically and financially viable. The study also cautions city officials to beware of "geeks bearing gifts," suggesting that companies like EarthLink and Google are interested in providing free Wi-Fi because the deals will give them rights-of-way and valuable access to public infrastructure like light and telephone poles.

» Press Release
» Full Study (.pdf)
» Policy Summary (.pdf)


Telecommunications Experts


Adrian Moore
Vice President, Research

Steven Titch
Policy Analyst

Media Contact


Chris Mitchell
Director of Communications
(310) 367-6109


Policy Studies


iProvo Revisited: Another Year and Still Struggling
April 2008
Policy Brief 69
By Steven Titch
 » Press Release
 » Full Policy Brief (.pdf)

Better Prices and Better Services for More People: Assessing the Outcomes of Video Franchise Reform
January 2007
Policy Study 355
By Steven Titch
 » Full Study (.pdf)
 » Press Release

I Want My MTV: Reforming Video Franchises for Competitive TV Services
January 2007
Policy Study 352
By Steven Titch
 » Full Study (.pdf)
 » Press Release

Spinning its Wheels: An Analysis of Lessons Learned from iProvo's First 18 Months of Municipal Broadband
December 2006
Policy Study 353
By Steven Titch
 » Full Study (.pdf)
 » Press Release

A Dynamic Perspective on Government Broadband Initiatives
December 2006
Policy Study 349
By Jerry Ellig
 » Full Study (.pdf)
 » Policy Summary (.pdf)
 » Press Release

Internet Access Competition and Economic Development
Coming in April 2006
By Donald Alexander
 » Request to be notified when study is released

The Municipal Broadband Compact
September 2005
 » Full Text
 » Press Release

Questions Public Officials Should Ask About Government Broadband Services
September 2005
 » Full Text

Spectrum Privatization: Removing the Barriers to Telecommunications Competition
July 1996
Policy Study 208
By David Colton
 » Full Study (html)

On the Frontier of Deregulation: New Zealand Telecommunications & the Problem of Interconnecting Competing Networks
May 1994
Policy Study 177
By Milton Mueller
 » Full Study (html)

 

More Telecommunications Studies

Commentary


Don't Panic! Fiber Is Coming
High-speed Internet connections are coming to your town
April 29, 2008 | Reason.org
By Steven Titch, Reason
 » Full Text

Government Wants to Know What Is On Your Computer and Cell Phone
Searching and seizing laptops doesn’t make us safer
March 5, 2008 | Reason.org
By Steven Titch, Reason
 » Full Text

Municipal Broadband Fails - Again
Phone taxes raise price of a service essential for economic growth and empowerment
January 28, 2008 | Reason.org
By Steven Titch, Reason
 » Full Text

Michigan's Proposed Telephone Tax Will Burden Consumers
Phone taxes raise price of a service essential for economic growth and empowerment
July 13, 2007 | Detroit News
By Steven Titch, Reason
 » Full Text

Net Neutrality Really Means Internet Mediocrity
Congressional plans would slow technological innovation
April 19, 2007 | Reason.org
By Steven Titch, Reason
 » Full Text

Villaraigosa Should Ask If a WiFi Plan Is Really Necessary
Los Angeles should follow Anaheim's broadband plan
March 12, 2007 | Los Angeles Business Journal
By Steven Titch, Reason
 » Full Text

The Citywide Wireless Network That Never Was
San Francisco will be last to citywide wireless at this rate
September 26, 2006 | San Francisco Examiner
By Steven Titch, Reason
 » Full Text

Video Franchise Reform Would Support Competition and Consumer Choice in Pennsylvania
SB 1247 would bring lower rates for consumers and greater choice of services
August 8, 2006 | Testimony
By Steven Titch, Reason
 » Full Text

The Market, Not Regulators, Should Decide the Internet's Future
Why net neutrality regulations are a bad idea
July 10, 2006 | Los Angeles Business Journal
By Nick Gillespie, Reason
 » Full Text

Cable Competition Offers More for Less
California legislature should end monopolistic alliance of cities, cable TV companies
July 5, 2006 | Orange County Register
By Steven Titch, Reason
 » Full Text

Neutering the Net
Why Microsoft, Amazon, and other charitable organizations want to regulate the Internet into prosperity
June 22, 2006 | Reason.com
By Nick Gillespie, Reason
 » Full Text

Two Cheers for California's Cable Franchise Reform
Consumers get more choices for Internet, cable and phone services
June 12, 2006 | Reason.org
By Adam Summers, Reason
 » Full Text

Stevens-Inouye Telecom "Reform" Falls Way Short
Network neutrality is just one of the key issues
May 5, 2006 | Reason.org
By Steven Titch, Reason
 » Full Text

Timeline of Municipal Broadband and Technological Developments
How private sector technology and government-run Internet and WiFi have evolved since 1989
April 18, 2006 | Reason.org
By Steven Titch and Adrian Moore, Reason
 » Full Text (.pdf)

 

More Telecommunications Op-Eds and Commentaries


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