Often times, telecommunication services can be difficult to come by in rural areas of the U.S. Whereas metropolitan regions have several choices at their disposal, many customers living outside large cities have little resources for computing and communication. Recently, one community in Colorado took matters into its own hands by approving a measure that would allow for the establishment of a public telecommunication utility. While this will improve broadband service in the area, practices of this kind could affect providers’ network expansions and revenues.
City officials approve telecommunications measure
According to Community Broadband Networks, the city of Montrose, Colo., recently voted on a measure that will “re-establish their City’s right to provide all services restricted since 2005 by Title 29, article 27 of the Colorado Revised Statutes.” The Daily Yonder contributor Jim Branscome reported that the initiative was approved by the local council in a 3,969 to 1,396 vote.
While still needing further approval by other government entities, the efforts would allow the region to create its own telecommunications utility. City official Virgil Turner noted that the city could then become a fiber infrastructure provider, offering Internet services to business and residential customers in the region through a carrier neutral model. Furthermore, the project would be “service motivated … not profit motivated,” Turner told The Daily Yonder.
“We don’t want to create two levels of society here, those who are connected and those who are not,” Turner said.
Instead, connectivity resources would be available for all customers.
Initiative obstacles
Although a seemingly innovative measure, Montrose is not alone in its struggle to establish broadband networks for residents and the local enterprise community. RCR reported that Oklahoma City created a wireless mesh network spanning 555 square miles, effectively providing coverage for 95 percent of the city’s core.
While additional telecommunications services would greatly benefit schools, businesses and government agencies, entrepreneurs in Montrose did voice concern about their personal investments in fiber-to-the-tower technology, especially how these investments would be recovered.
Additionally, this practice presents a potential issue for established service providers that may want to establish a presence in more rural areas. Public networks like those proposed in Montrose would provide additional competition for vendors, not to mention undercutting potential profits. These regions could provide room for expansion within telcos​’ service footprints and these organizations would be wise to invest in such areas.
Some vendors, however, are taking steps to provide services for these customers. RCR reported that Comcast unveiled an initiative last year that would allow clients to access a hotspot while roaming from their home services. At the time of the announcement, Comcast had 150,000 hotspots in the U.S.
