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Note: Telcos and Cable Companies are also fighting municipal efforts at offering local residents additional competition for data/phone/cable services.

from: Wilson Daily News

Fiberoptics causes upset

By Matthew Shaw Daily Times Staff Writer

Wilson officials clashed Thursday night with a Time Warner Cable representative over the city's plans for a fiberoptic network.

Reid Hartzoge, public affairs manager for Time Warner, used the city's public hearing on the financing of its Fiber to the Premises network to raise questions about the stability of the city's business plan.

"You are appropriating taxpayer dollars to compete with private industries," she said.

City officials have compared FTTP to other city utilities like water and sewer, she continued, but the city has monopolies for those services. Wilson will be competing with Time Warner and other companies for a limited number of subscribers, all offering basically the same services.

"Has the city really considered these issues?" she asked.

City officials responded with questions of their own.

"Have you seen our specs?," Councilman James Johnson III said. "You don't offer the same thing we'll offer."

A total fiberoptic system will have much faster upload and download speeds than a system that is built with coaxial cable, Johnson said.

City officials were also upset with remarks that had been made by Hartzoge's boss, Brad Phillips, Time Warner's vice president for government and public affairs, in the Daily Times last weekend.

"You and Brad keep saying taxpayers' money, taxpayers' money, taxpayers' money, but we're talking about fees," Johnson said.

The city's business plan calls for it to invest up to $28 million in startup costs, with that debt being repaid as residents and businesses subscribe for Internet, cable television and telephone services.

City Manager Grant Goings said that two national financial institutions have expressed an interest in loaning the city the money it needs with only the fiber network as collateral. That shows a belief in the city's business plan, he added.