> As a result, households there can now get 1 gigabit (1,000 Mbps) service for just $70 per month.
> The Obama administration is also planning to offer subsidies to promote investments in local broadband.
While $70 doesn't seem like an outrageously great deal (it is good), it brings up an interesting point my dad had the other day. Is the true cost of that gigabit internet $100/mo, and tax dollars subsidize $30 while you cover the other $70 as stated? If municipalities truly can provide faster cheaper internet I'm all for it; however, I would hate to have another reason to bump taxes, nor a reason to crowd out competition and remove the incentive for innovation.
Most likely the true cost to you in densely populated area X is more like $30/mo and the cost to someone out in sparesly populated area Y is $170/mo. Considering most plans cost the same regardless where you live, you all pay the "true" $100/mo.
> The Obama administration is also planning to offer subsidies to promote investments in local broadband.
While $70 doesn't seem like an outrageously great deal (it is good), it brings up an interesting point my dad had the other day. Is the true cost of that gigabit internet $100/mo, and tax dollars subsidize $30 while you cover the other $70 as stated? If municipalities truly can provide faster cheaper internet I'm all for it; however, I would hate to have another reason to bump taxes, nor a reason to crowd out competition and remove the incentive for innovation.