dslreports logo
 story category
Fiber Fueled Salvation
The impact of fiber builds on local economies
We've long discussed how many communities think that building a fiber network will act as an economic panacea for their struggling economies. The town of South Dundas in Canada spent $975,000 to build and maintain a fiber network, resulting in 62.5 new jobs, $2.1 million in commercial expansion and $105,000 in increased regional revenues and cost savings. Laying 800 miles of fiber in Southwest Virginia (thanks in part to Tobacco settlement money) lured two major companies to the region and 1,500 jobs. Killer App also explores how the small city of Jackson, Tennessee, has been competitive thanks to their own fiber.

Most recommended from 22 comments



richardpor
Fur it up
join:2003-04-19
Portland, OR

2 edits

2 recommendations

richardpor

Member

Not the case

This is a typical broken window fallacy. If the town tax and spends on infrastructure the result always is economic growth. The problem is often taxes takes money that could have been better invested by business. Furthermore, I see the so call investment in muni fiber is directed towards residential broadband. IF this principal was true, we should see growth also in Tacoma Washington and Ashland Oregon both created municipal broadband networks. Both economies are stagnant.

The reason these small towns are attractive is low tax base and less regulation. Let not forget many companies can get accesses to fiber networks in many metropolitan areas from the telecoms. There must be other reasons.