A November 2013 report by the Reason Foundation, a self-proclaimed libertarian, free-market think tank, claims municipal broadband projects like Lafayette Utilities System’s fiber network are fundamentally flawed and practically destined to fail.
“For all the enthusiasm about municipal broadband, one fact remains: A great majority of systems fail,” author Steven Titch wrote in “Lessons in Municipal Broadband from Lafayette, Louisiana.” “Those that survive end up falling short of their promised goals of lower prices, better service and ubiquity.”
Titch claims that LUS Fiber boasts about revenues on the rise, but more and more of those revenues are coming from the city-owned utility system. He said LUS “might be bending the rules” that prohibit the utility from subsidizing the fiber entity.
But LUS Director Terry Huval said Monday it’s Titch’s report that’s flawed and biased.
“Steven Titch, a paid analyst, and formerly a news editor in the telecommunications industry, has been criticizing LUS Fiber and other municipal broadband systems for virtually the past decade,” Huval wrote in response to the report.