Burdens and risks of public broadband systems in Visual Studio .NET

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43 Burdens and risks of public broadband systems
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There are nancial, technological, marketing and political burdens and risks faced by the public entity when planning and implementing public broadband systems 1 Financial: r costs construction, operations and maintenance; r revenues need relatively high penetration rates;
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Key Legal and Regulatory Issues Affecting Community Broadband Projects in the United States
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r unavailability of suitable nancing at all stages; r restrictions on nancing; r costs of combating challenges by incumbents (legislative and judicial)
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2 Technological: r changing technologies complete obsolescence or enough competition to cut penetration below necessary levels: the longer the payback period needed to reach success, the greater the likelihood of pressures from new or improved technologies; include all technologies, eg, improved performance (DSL for wireline and DOCSIS 2 and beyond for cable), Wi-Fi, xed terrestrial and satellite wireless, Ultra Wide Broadband; electric power lines Manassas, VA pilot r economies of technological scale local vs regional, national or international operations; r the need for expertise in multiple areas 3 Marketing: r government entities generally lack communications marketing expertise; r national brands vs local identity; r bundling of cable, local and long-distance telephone, Internet, etc; value of whole package may offset de ciencies in any individual area eg, poor cable service; economies of scale in operations, bulk purchasing, borrowing, advertising, etc r deep cost cutting by incumbent 4 Political: r deep philosophical differences eg, private enterprise vs local self-help; r regional differences; r major incumbents have vast political clout with Congress, many state legislatures
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44 Legal authority of public entities to provide communication services1
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United States federal law has played a pivotal role in the communications area since 1910, when Congress enacted the Mann Elkins Act to give the Interstate Commerce Commission authority to regulate telephone, telegraph and undersea cable providers, services and facilities In 1934, Congress enacted the rst comprehensive federal communications law, the Communications Act of 1934, which incorporated many key federal principles and requirements that continue to exist today In the 1934 Act, Congress established the Federal Communications Commission (FCC) and granted it broad authority to regulate interstate and foreign communication by wire and radio The term interstate meant any service that originates in one state and terminates in another The Act also preserved state authority over communications originating and terminating within their borders: Nothing in this Act shall be construed to give the
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1 The
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analysis presented in this section focuses primarily on publicly provided retail services The issues surrounding wholesale services are more complex, as the exact nature and regulatory status of such services may differ from project to project and state to state
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Commission jurisdiction with respect to charges, classi cations, practices, services, facilities, or regulations for, or in connection with, intrastate communication service of any carrier 2 The 1934 Act gave the FCC jurisdiction only over common carriers that is, entities that hold themselves out as being willing to provide services indiscriminately to all who want them, and are willing to pay the going rate The 1934 Act required such common carriers to provide their services at just and reasonable prices; to refrain from making unjust or unreasonable discriminations; to utilize just and reasonable practices, classi cations and regulations; to keep records, make reports and le tariffs in accordance with FCC requirements; to obtain FCC approval before acquiring or constructing new lines or terminating services; and to participate in FCC complaint processes The Act did not apply similar requirements to private carriers that provide communications pursuant to individually-tailored, individually-negotiated agreements3 This distinction between common and private carriage is an especially important one for public power utilities today The 1934 Act also established the precedent of dividing communications services into separate and distinct categories, each with its own history, de nitions and substantive requirements The Act separated telephone and telegraph services from radio services, regulating the former under Title II, and the latter under Title III The FCC followed that precedent in the early 1970s, when it began to treat computer-based data and information processing services as a separate, unregulated category of services called enhanced or information services Congress did so as well in 1984, when it enacted Title VI to regulate cable television services, and again in 1993, when it added a new part to Title III to deal with wireless telecommunications services The FCC has struggled to keep these categories separate, but with the rapid convergence of services and providers today, and particularly with the explosive growth of the Internet, both Congress and the FCC are coming under increasing pressure to discard the traditional regulatory distinctions and reinvent the communications laws Among the most important aspects of the 1934 Act was its adherence to the prevailing economic theory that local telecommunications markets are best served by a single provider According to this natural monopoly theory, the cost of constructing, operating and maintaining a telecommunications service that offers affordable service to all addresses is so great that, as a practical matter, only a single provider can survive in a local market As a result, regulators must preserve and protect the local monopolist by allowing it to obtain reasonable rates of return and by barring cherry pickers from siphoning off lucrative business At the same time, however, regulators must vigilantly control rates, terms and conditions of sale to prevent the telephone company from abusing its monopoly power The theory also contemplated that the
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