Thursday, July 24, 2014

Does This Make Any Sense?

The City of LA has issued an RFI for a fiber build for the city. The intents are:

  1. Ensure that every home and every business in Los Angeles can be served by an advanced communications network that will provide a high-speed, high quality broadband connection to the Internet.
  2. Ensure that areas of the City that are currently underserved are promptly served.
  3. Ensure that the City is served by an open network, so no one is prevented or blocked from taking full advantage of the Internet’s capabilities; and
  4. Ensure that every Angeleno can enjoy the benefits of broadband, regardless of income or the area in which they reside. 

Now this is projected to cost well in excess of several billions, to be controlled by the city, at no cost to the city, and to provide free service to those who cannot afford it. This has the signs of a total disaster.

First, there are two strong players there already; cable and telco.

Second, wireless is a clear winner in LA, it is flat for the most part.

Third, the costs are extraordinary and the revenue is problematic.

Fourth, litigation will just explode for a variety of reasons.

Fifth, well its LA.

And we thought Washington had the hold on most dumb ideas!