On The Side: The 'Pilot Project'

 Internet access is vital for today’s economic development ventures. Most businesses need access for point-of-sale devices that take credit and debit cards or for storing data off-site.

Last week, the U.S. Department of Agriculture and the U.S. Environmental Protection Agency announced funding for five small U.S. towns in a pilot project aimed at providing broadband service for downtown revitalization and economic development.

One of the recipients is Leon, in Decatur County. That community’s plan is to “develop a strategy for implementing a free Wi-Fi zone in its downtown square to draw more economic activity and provide low-income residents with internet access.”

My initial response to this was: “Great. The government is giving money to five small towns across the country, leaving 99.9 percent without that type of help, and the money is going to provide a service that likely already exists.”

I thought that response was appropriately snarky, but I thought about it, and then changed my mind.

Why?

One of the most forward-thinking things I witnessed in my previous Iowa home was the creation – by public vote – of a telecommunications utility. The utility’s purpose is to take a long-term look at ensuring the town was consistently pushing for broadband service with higher speeds and increased availability capacity for cable television and other services. In short, the community’s residents were upset with their broadband services, so they decided to push the envelope. That was accomplished because part of the utility’s power is, with voter approval, to build the town’s own infrastructure – lines, poles, underground cables, and home and business hookups. 

Services in the community improved. The company which held the city’s franchise gained customers.

Free markets are generally the best answer to a situation, but I will never argue that’s always the case. There are times when there is insufficient competition to generate a free market. In this case, the community had given a long-term franchise agreement to one company, and its response was to dribble out improvements and raise prices. The citizens created a utility that probably will never be fully constructed – but the power to do so exists, and that was enough to convince a for-profit business to do better.

Government shouldn’t be in the hardware business, food business, media business, car business, etc. But, utilities are necessary for the operation of businesses. Roads, water, and sewer have long been the mainstays. Today, high-speed broadband is vital for businesses to compete. Frankly, a small town such as Leon, population 1,977, probably will not draw much competition from the internet services provider market. It has what it has. But a pilot project there might spur other towns to consider an approach that allows the citizens – we, the people – to use their government to push the envelope.

It can work. I’ve seen it in a town of 4,250. All it cost the taxpayers was the price of an extra box on a local election ballot and an attorney to adapt the language from another community to make it possible.

I get the pilot project now. But, it’s still more fun to be snarky. Thus, what’s the EPA got to do with it?

Brad Hicks is the Editor/Publisher of the Red Oak Express. He can be contacted at publisher@redoakexpress.com.