The Business Case For Government Fiber Networks

With the lucky few recipients of federal broadband stimulus grants now hard at work building their networks, localities that did not win funding or were not in a position to apply could be forgiven for thinking they missed the opportunity to operate a government-owned, fiber optic broadband network. This is especially true for any community in danger of losing its institutional network (I-Net) – that hard-won concession of cable contracts from an earlier franchising environment – because of regulatory or technical changes. However, despite the closing of the $7 billion broadband stimulus window and the ongoing shift from franchise-funded I-Nets, viable options remain for communities to build next-generation networks to serve governmental and institutional needs. Rather than government grants or cable-company funding, new federal E-Rate regulations and new ways to analyze the benefits of municipal fiber networks will be the keys to a successful business case.

[Editor's note: Joanne Hovis is a member of the Benton Foundation's Board of Directors]