City-Owned Internet Services Offer Cheaper And More Transparent Pricing
Traditionally a privately held company offers more competitive pricing on products and services than that of a government entity. However, when it comes to Internet services, City-owned are showing up as the more economical option.
Below is an article from arstechnica.com that details the advantages of using a City-owned Internet Service when compared to a privately owned service. After reading the article give us a call at SpendBridge so we can assist you in your partnership with Government to implement a procurement process to best meet your needs.
Source: arstechnica.com | Re-Post SpendBridge 3/7/2018
Municipal broadband networks generally offer cheaper entry-level prices than private Internet providers, and the city-run networks also make it easier for customers to find out the real price of service, a new study from Harvard University researchers found.
Researchers collected advertised prices for entry-level broadband plans—those meeting the federal standard of at least 25Mbps download and 3Mbps upload speeds—offered by 40 community-owned ISPs and compared them to advertised prices from private competitors.
The report by researchers at the Berkman Klein Center for Internet & Society at Harvard doesn’t provide a complete picture of municipal vs. private pricing. But that’s largely because data about private ISPs’ prices are often more difficult to get than information about municipal network pricing, the report says.
In cases where the researchers were able to compare municipal prices to private ISP prices, the city-run networks almost always offered lower prices. This may help explain why the broadband industry has repeatedly fought against the expansion of municipal broadband networks. This fight includes pushing legislators to draft anti-municipal broadband state laws, lobbying against local ballot initiatives, and filing lawsuits against cities that build their own networks.