Financial Implications of Opelika's Municipal Broadband Network

Perspectives Phoenix Center Perspectives No. 17–11

10 Pages Posted: 14 Mar 2018

See all articles by George S. Ford

George S. Ford

Phoenix Center for Advanced Legal & Economic Public Policy Studies

Date Written: August 24, 2017

Abstract

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

Ford, George S., Financial Implications of Opelika's Municipal Broadband Network (August 24, 2017). Perspectives Phoenix Center Perspectives No. 17–11, Available at SSRN: https://ssrn.com/abstract=3138859

George S. Ford (Contact Author)

Phoenix Center for Advanced Legal & Economic Public Policy Studies ( email )

5335 Wisconsin Avenue, NW
Suite 440
Washington, DC 20015
United States

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