 gissaI Hit Things With Sticks
join:2002-01-28
Hyde Park, MA
1 edit | Future viability of this project They are using revenue bonds to pay for this project. So the bondholders are being paid interest from the revenues this project generates. What happens when a Baby Bell comes in and installs their own fiber undercutting the muni? All customers will go for the better price and the city could end up defaulting on their debt; making additional debt more expensive and sending the overall financial situation of the muni down the drains...
I guess it could very well play out like this unless there is some rule the muni has that would eliminate the risk of competition. |
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| All I am saying is how can a telco or what ever company can stop a city from putting in it own internet services? Thats like me buying a house and want to paint the exterior. Then have a stranger come by and say you cant do that. I really dont get it.....Please explain to me how they can do that? |
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TheGhostPremium
join:2003-01-03
Lake Forest, IL | reply to gissa
Would be like a few Comcast examples where they cut prices in areas of competition, supporting those prices with monopoly profits from elsewhere, until competition is driven out of business. They then raise prices to recoup losses. |
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gissaI Hit Things With Sticks
join:2002-01-28
Hyde Park, MA | reply to Jasper1970
Hey Jasper -
The bells' argument against muni build-outs is that, in many cases, the munis regulate the actions of the bell companies. So they say it is not appropriate to be competing against the institution that regulates them. I can see the reasoning, but I have never trusted the Bells. |
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wtansillNcc1701
join:2000-10-10
Falls Church, VA | said by gissa:Hey Jasper - The bells' argument against muni build-outs is that, in many cases, the munis regulate the actions of the bell companies. So they say it is not appropriate to be competing against the institution that regulates them. I can see the reasoning, but I have never trusted the Bells. If the incumbants provided the service, then certainly the muni would regulate it. The argument fails however, since the incumbants are not providing the service. Muni regulations, therefore, are a non-issue.
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That which does not kill me merely prolongs the agony. |
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