DearLegislator:
Onbehalf of the National Taxpayers Union's (NTU's) nearly 8,300 membersin Georgia, I urge you to support Senate Bill 313, the BroadbandInvestment Equity Act. SB 313, sponsored by Senator Chip Rogers, setsbasic rules for competitive fairness between government-ownedbroadband networks and existing providers in the private sector.Unfortunately, Georgia is rife with examples of cities and towns thatinvested in expensive and redundant networks, exposing taxpayers tomillions of dollars in unnecessary risk.
SB313 would implement vital safeguards to protect taxpayers from thecreation of duplicative and wasteful municipal broadband networks.For example, the bill would address the issue of hidden costs byrequiring more accurate assessments of the burdens associated withgovernment-owned networks and specifically ensuring that they must beself-sustaining ventures. It would also facilitate greater citizeninvolvement by stipulating voter approval before any city couldadvance a municipal broadband network, thus making certain that thepeople who underwrite these projects have a direct say in theircreation.
Mariettaprovides a stark example of the government-owned network nightmare.In the late 1990s, city officials issued $35 million in bonds toconstruct and maintain a network called FiberNet. From its inception,the venture was intended to be a direct competitor with incumbentcable and Internet providers. However, by 2005, after only luringaway 180 customers from the private cable companies, FiberNet wassold at a loss of $11 million.
Mostcommunities across the state have several existing competitors fromwhich they can purchase high-speed Internet service. Local officialsshould not be dreaming of ways for government to intervene in anenterprise filled with private competition. Governments exist toprotect citizens and to provide public goods and services, likeroads, that are not commonly offered by the private sector. Theycertainly do not exist, on the other hand, to underwrite flashyadventures in entrepreneurism with taxpayer money.
Georgiataxpayers face enough burdens as it is. SB 313 would ensure that theydo not also bear the weight of municipal broadband networks unlessthey choose to do so. We urge you to give this important legislationyour full support moving forward.
Sincerely,
Andrew MoylanVice President of Government Affairs