IP Democracy: If High-Speed Service is a Necessity, Why Doesn't Everyone Buy It?

A new article in the Heartland Institute’s IT&T News makes the case against municipal broadband service and posits a reasonable rebuttable to the contention that high-speed service is an essential service, just as electricity and water is.

Unlike water or electricity, high-speed service providers cannot count on a 100% take-rate, Steve Titch, the article’s author notes.

If broadband were really a consumer necessity the way electricity is, we would see virtually 100 percent penetration in the areas where broadband is available, just as we do for electricity. Municipal broadband proponents say we don’t see that level of penetration because of high prices. That assumption is questionable, though: Many households are willing to pay $100 a month or more for electricity, while broadband tops out at about $50 a month (and on average runs closer to $30 or $40).

Posted by Cynthia Brumfield on May 24, 2005 10:00 AM to IP Democracy