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Analyst: "Municipal Broadband a Positive Development"

Municipal broadband developments are not isolated projects anymore. According to Analysis Research, a British market research firm, government led investments in broadband technology show more and more an international tendency. Concerns of communities worldwide of a constant evolution of Internet infrastructure would "enhance competition through increased consumer choice and result in better customer service," said Analysis analyst Hugh Kelly.

He believes that "governments are in the position to correct failures of the private sector" in regards to installation of fiber optic technology. Since broadband is increasingly important not only for businesses to make a choice for their locations, but also for residents who demand high speed Internet access, municipal broadband is a "good development".

Analysis outlines a range of business models for municipal broadband, including governments being just the infrastructure provider or also being the service provider. In the case local governments provide broadband services such as cable TV, phone service and Internet access, "such developments can be a clear threat to larger telecommunications companies," said Kelly. The main reason: Local governments have a financial advantage: "They do not need to prove great performance to their shareholders. They just need to break even," Kelly explains. For that reason it was not problem for municipal broadband services to compete successfully with large and established telecommunications companies in the short, mid and longterm.

Source: Fiber For Our Future exclusive

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