It’s not a precedent, it’s a playbook and telecos have been following it for decades. If you have one of the big telecoms in your city, they will sue to block municipal broadband. These suits win more often than not and even when they lose the rollout is usually delayed long enough as a result that they break even on legal fees.
This is actually Cleveland’s second attempt to expand municipal broadband after their last effort in 2021 was thwarted when the Ohio state government banned Cleveland and other cities from building out fiber – obviously at the behest of lobbying from ISP special interests.
This new attempt works around the law by forming public-private partnerships instead of true state-owned infrastructure. It’s the most they can do without violating state law:
SiFi and CircleC, not the city, will own the finished networks. With little to no taxpayer money being spent, it’s a tradeoff city leaders say they felt made sense.
“They already have a right to use our right of way—we’re not providing any special access to it, the agreement is just us all getting organized for how permitting for such a large scale project will go,” Davis said of the SiFi partnership. “Since the city’s paying for it or putting anything in, it’s not getting an equity stake.”
Similarly, Davis noted that DigitalC will also maintain ownership of their finished wireless network.
“We at the City are not contracting for infrastructure,” Davis noted. “We’re contracting for DigitalC to take 23,500 households–about 50,000 residents–that don’t subscribe to at-home broadband today and get them to become at-home internet subscribers, and provide digital adoption services and training to 50,000 residents. Basically, we’re paying to halve our present unconnected rate of 32 percent.”
Just because the city’s not “putting anything in” doesn’t mean they aren’t contributing or absorbing costs.
The city should have a stake in it, since it’s on city property, and the city maintains the local infrastructure (poles, right-of-ways, etc) that these companies need to install anything. Otherwise it’s just another (local) monopoly.
Wow, I missed that they banned it in Ohio. It must only apply to new systems as I’m fairly sure Fairlawn is still operating municipal fiber.
That’s really irritating though, of course they snuck it into a budget bill.
Whoops! I went back to double-check after seeing what you said and found that the provision was actually dropped from the bill in the time between when it was passed by the Senate and signed by the governor.
The way it got quietly dropped like that kept it from being well publicized, but the long and short of it is that I misremembered and then failed to spot this detail while fact-checking myself. I’m sorry for spreading misinformation – I’ve updated the original post
Ah good! That simplifies things for Cleveland then.
bassomitron@lemmy.world 1 year ago
The metro area where I live had to do this public-private partnership for the same reason. They proposed public fiber years ago and Mediacom sued and blocked it. This was how our metro area (a collection of roughly 6 cities) got around that bullshit lawsuit. As a result, we now have 1Gb symmetrical fiber for $60/mo (Mediacom charged $120+/mo for 1Gb and maaaaybe 10Mb up on good days, oh and constantly had outages).
Fuck Mediacom and their ilk.
Buddahriffic@lemmy.world 1 year ago
Fuck the courts that enable them instead of shutting these monopolies down.