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Is a Publicly Owned Minneapolis Information Network A Wise Public Investment?
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Ten Myths About A Publicly Owned Information Network in Minneapolis, and the Facts
David Morris and Becca Vargo Daggett on municipal broadband - December 6, 2005, Wendy Wilde Show, Air America Minnesota (Part 1 and Part 2)
Ownership Matters With Wireless Systems - published November 15, 2005 in the Pioneer Press
Publicly Owned Broadband Would Serve Minneapolis Best - published August 1, 2005 in the Star-Tribune
Who Will Own Minneapolis' Information Highways? a fact sheet - August 2005
Who Will Own Minnesota's Information Highways? - a white paper from the Institute for Local Self-Reliance, June 2005
Wireless (and Wired) Minneapolis
Publicly owned citywide wireless network could generate millions in public benefits
Minneapolis, February 2, 2006 – A publicly owned citywide wireless network could pay for itself in five years, according to a financial analysis released by the Institute for Local Self-Reliance. “Even in the worst-case scenario, the network makes money in the first year. Investing in its information infrastructure is the wisest investment Minneapolis can make at this time”, insists Becca Vargo Daggett, director of the Institute’s Municipal Telecommunications Project.
The report, Is A Publicly Owned Information Network for Minneapolis a Wise Public Investment? was done to fill a void in the public discussion, “We had hoped the City itself would do such an analysis”, says Ms. Vargo Daggett. “It’s not too late. In the report, we urge the City develop its own financial analysis and make it publicly available.”
The report offers two scenarios. One is very conservative, a “worst-case” scenario. The other is a more realistic scenario. Under the more realistic scenario, in the first year of operation, the publicly owned system would generate sufficient profits “to put 20 more police officers on the streets or keep all 15 libraries open on Sunday afternoons.”
The report concludes that in its first 10 years the system could generate a surplus of $19 million. “This could go into the City’s general funds or be used to guarantee that all residents in Minneapolis have access to high speed information networks”, says David Morris, Vice President of the Institute. Mr. Morris notes that the City has stated publicly that it cannot afford to invest $25 million in building a network, that such an investment is equal to its entire annual capital budget. “But the vast majority of the City’s existing capital budget is for non-revenue generating projects, like road resurfacing. This investment, on the other hand, will yield a 10 to 20 percent annual return. Minneapolis isn’t going to become a great city by passing up this kind of opportunity.”
Is A Publicly Owned Information Network for Minneapolis a Wise Public Investment? (PDF)