Financial Implications of Opelika's Municipal Broadband Network
Perspectives Phoenix Center Perspectives No. 17–11
10 Pages Posted: 14 Mar 2018
Date Written: August 24, 2017
Using the city's financial documents, the financial impact of Opelika-Alabama's municipal broadband network is calculated. In its five years of operation, the electric ratepayers have subsidized losses on the broadband services equal to $14 million. That cross-subsidy is projected to grow to $19 million by 2020. The city raised power bills by over $5 (on average) to help subsidize the losses.
Keywords: Municipal Broadband, Broadband, Government Owned Networks, Fiber Optics, FTTH, FCC, Preemption
JEL Classification: L96
Suggested Citation: Suggested Citation