Keep the Internet private
The ambitious plan, reported this week in the New York Times, is the latest example of cities in America deciding that Internet service should be treated like a public utility. But it is more instructive than that.
In Utah, a consortium of cities has formed under the banner of UTOPIA to bring fiber-optic cable directly into every home and business. Last summer this consortium obtained an $85 million revenue bond to begin its first phase. The eventual costs are predicted to run to several hundred million dollars.
Compare even the initial $85 million to Philadelphia's $10 million, and it becomes clear that there is truth to the adage that technology will only become cheaper and more efficient with time. Which is another way of saying that cities are certain to waste taxpayer money if they insist on getting involved.
UTOPIA officials have argued that wireless technology is too slow for the needs of its communities, which is why it wants to take the expensive step of physically running a cable to every single house or building. Provo is doing much the same within its borders. The plan would indeed provide the fastest connection speed currently possible. But wireless technology has developed at a rapid pace since UTOPIA announced its plans. The recently approved WiMax technology, for example, makes it possible to bring fiber-optic cables only as far as a set of strategically placed towers, from which a high-speed wireless signal could penetrate everywhere.
The question that always looms in discussions about modern technology is, what's next? It would be naive to think WiMax is the final word in Internet service, or that it even would remain current for very long. But it would be equally naive to think a taxpayer-funded service would be nimble enough to keep pace.
UTOPIA would set up a service network that eventually could be accessed by any provider. But most of those providers are saying they would rather take their own chances, thank you. It's easy to argue that American cities are falling behind the rest of the world when it comes to connecting to the Net. But anyone who has ever studied socialism understands that people benefit most when private concerns are the ones leading the way.
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