Yesterday Governor Cuomo launched his program called #Broadband4all,
which would bring high speed internet to all New Yorkers. This billion-dollar
program is being called transformative but also the largest state
infrastructure investment in New York State history. The proposal would grant
New Yorkers across the state access to this high-speed internet by the end of 2018.
The NY Broadband Program would include many counties and
districts that had broadband that, when tested, were nearly 200% below the
recommended level of Mbps or Megabytes per second. In his address, Cuomo stated
that the need for fast internet in schools, hospitals, and many businesses.
Making New York State a competitive force is Cuomo’s ultimate goal and having
this foundation will help ensure a brighter future. Some of the counties that
were listed on New York States website were: Jefferson, Monroe, Oswego, and St.
Lawrence. These counties preformed well below the recommended average for
households, businesses and public institutions. While many people support the program to make New
York more competitive, many say this is not the way in which New York should be
moving.
With a price tag of 500 million dollars, the #Broadband4all
program is the most expensive technological investment ever made by New York.
Many people are wondering why the state is funding a program that could be fully funded by the individual companies. While internet is a main factor in education and hospitals, New York Staes money could be used in a more practical way. While the private sector would be encouraged to pay for the entirety of the program. Since 2009 Cable
Vision had a net income of $1.946
billion dollars and in 2014 Time Warner
Cable had a net income of $554 million dollars. Many people are asking why
is New York paying for half of the price tag when these businesses are making astronomical
amounts of money.
The #broadband4all seems to have two sides to it. Although, it will benefit New York, you raise good questions on whether this is worth it for the state to fund this program. Time Warner Cable is a very valuable company, and without a doubt could provide these services without government aid. However if you look in the long term, this could be a monopoly situation like the electrical company that provides electricity to all of Potsdam. Its nearly impossible for another company to come in and set up, making it a monopoly. Do you think if Time Warner Cable were to provide the internet to the entire state, then would they monopolize New York? Should a firm have that much power?
ReplyDelete-Sally Mooney
Kathleen, you bring up a very good point about how this could become a monopoly. While I do believe a company could become monopolized in a specific area, if the state sets up restrictions or gives incentives to produce these services to rural area, the companies could get some sort of relief. An example would be a tax break for the company if they build or create jobs in a rural area like the Adirondacks. While the state would give out incentives, the total price tag would be no where near the 500 million dollars proposed. I believe the state is trying to jump start this, where if the individual companies did it alone it would take a longer time. Giving incentives to companies like Time Warner Cable many spark an interest in other internet providers to start competing for these rural services making it not a monopoly. Either way, there are going to be consequences that we will have to live with. Pay upfront the astronomical cost of helping these corporations grow to local areas. or have to pay a premium for internet in a rural setting.
ReplyDelete