The first wave of publicly owned information networks was in communities that already owned electric utilities. Today, cities of all kinds are being offered seemingly attractive deals from private companies that want to build new information networks. They would do well to also evaluate publicly owned alternatives. Public ownership means ownership by citizens, customers or the community. It provides communities with an ongoing voice in the design and operation of their information and communication infrastructure, and can ensure values that are not being enforced by federal regulators, including universal access and competition.

Introduction

Ten years after the 1996 Telecommunications Act, which was supposed to accelerate the introduction of high-speed communications systems, the U.S. has dropped from first to 15th in the world for the percentage of residents with high-speed Internet access.

Increasingly, local governments are stepping in where the private sector and federal government have failed. Hundreds of cities are currently debating strategies to develop citywide broadband networks. They share common goals – universal coverage, equitable access, increased competition, and more effective use of the new communications systems for municipal services, especially those related to public safety.

Their discussions often ignore or give short shrift to a crucial issue: who will own the information network?

Ownership matters. Public ownership of the physical infrastructure may be the only way to guarantee future competition. It is clearly the only way that communities can influence the design of their future information systems on an ongoing basis.