In fact, the committee did turn up some rotten business. In New Mexico, investigators found that contractors ran roughshod over road officials, exhibiting "open contempt" for construction specs and quality controls as "a continuing course of conduct over a period of almost ten years." They got away with it, Blatnik's people found, because the state didn't know enough to object; its highway department was managed by unskilled laborers who had been advanced up the ranks without a lick of training. Some state men testified that they didn't know how to test roadbed materials, so they OK'ed all that came before them. Their boss admitted he wasn't schooled on how to do this work until after it was finished. The committee discovered on stretch of highway that was in the act of collapsing even as New Mexico officials signed off on it. The bureau stopped payments to New Mexico until it got itself together, and did the same to Massachusetts and Oklahoma.

“My answer has been, as it is tonight, to point out these plain principles,” Roosevelt told the crowd. “That where a community -- a city or county or a district -- is not satisfied with the service rendered or the rates charged by the private utility, it has the undeniable basic right, as one of its functions of government, one of its functions of home rule, to set up ... its own governmentally owned and operated service.”

While FDR was referring to electricity in 1932, he could easily be speaking about today's critical need for Internet connectivity. Fortunately for a growing number of people in our country, many local leaders share his sentiments and those communities are investing in community owned telecommunications networks.

Government Technology recently reposted a Governing article by Alex Marshall, a Senior Fellow at the Regional Plan Association in New York City. The Director of our Telecommunications work, Christopher Mitchell, tells me he just bought Alex's new book from a local bookstore and has put it at the top of his reading list: The Surprising Design of Market Economies.

Marshall sees fiber optic connectivity as the utility of today and tomorrow. He explores the question of who should provide access - public institutions or the private market? In his research, Marshall finds that many local communities are not waiting for an "official" answer to that question and are taking control of getting their citizens online.

Marshall spoke with Nick Braden from the American Public Power Association (APPA):

In Tubes, journalist Andrew Blum goes on a journey inside the Internet's physical infrastructure to uncover the buildings and compounds where our data is stored and transmitted. Along the way, he documents the spaces where the Internet first started, and the people who've been working to make the Web what it is today.

In August, we reported on the results of a report on UTOPIA by the Office of the State Auditor General of Utah. As you will recall, the results were less than favorable and presented more fodder for those opposed to municipal telecommunications infrastructure investment.

The same old arguments often rest on the financial investment in municipal networks - they are considered failures if they don't break even or make money. Pete Ashdown, founder of ISP XMission in Utah, addressed those arguments in the Salt Lake Tribune:

UTOPIA provides broadband service in 11 Utah cities. Today, communication infrastructure is no less critical than transportation, sanitation and clean water. Government is not a business, but the infrastructure it provides contributes to a robust business environment.

Consider how private businesses rely on government funded infrastructure. Why don’t entrepreneurs clamor to build the next generation of roads? Why don’t airline companies get off the public dole and build their own facilities? Why are sewer facilities so rarely handled by anyone else but the state?

Does effective infrastructure cost? Considerably. Does it make a profit? No.

For decades now, public service entities have contended with the argument that if they are "run it like a business" they will be more efficient, productive and even profitable. While lessons from the private sector may contribute to increased efficiency at times, government is NOT a business. Applying business tenets should be done sparingly and not in the case of critical infrastructure like electricity, roads, and yes, access to the Internet.

Gary D. Brown, who lives in Orem, shared a guest opinion through the Daily Herald and drew a similar parallel between UTOPIA's status and the business world:

Susan Crawford recently wrote for the Blog of the Roosevelt Institute, where she spent the last year as a Fellow. She draws on the history of electrification to remind us that the impasse we have in expanding great access to the Internet to everyone is not a novel problem.

Crawford emphasizes the similarities between the electrification of rural America in the 1930s and the need for ubiquitous high-speed Internet access today. Crawford sees an almost identical reality as she compares the world of broadband and the attitude toward electricity in the 1930s:

In 1920 in America, unregulated private companies controlled electricity. The result? 90 percent of farmers didn't have it, at the same time that all rich people in New York City did. And it was wildly expensive in many places. Although it's now considered an essential input into everything we do, at the time electricity was seen as a luxury; the companies served the rich and big businesses, and left everyone else out.

Crawford notes that in the '30s, it was strong and thoughtful leadership that led the charge to turn the lights on in rural America. It ws not inevitable - it took the hard work of many people dedicated to a better tomorrow. In fact, the Rural Electrification Administration was created only after many states had already created their own electrification programs, creating valuable lessons for those that came after.

As many of our readers know, local authority in one state after another has fallen to the armies of lobbyists recruited by AT&T, Verizon, Comcast, and others at the top of the telecommunications heap. South Carolina and California recently joined the list of states where the legislature abandoned the public interest in favor of a few corporate interests.

SandyNet, of Sandy, Oregon, recently announced that it plans to expand Internet service with fiber to every home and business in the city. The network, which has serviced the community for ten years, currently offers fiber to businesses along the Highway 26 corridor. Wireless service is available throughout town and in some rural areas around the City.

SandyNet plans to provide a range of tiers for fiber connectivity. Preliminary rates include residential fiber service of 100 Mbps for $39.95. Business service will vary from $69.95 per month to $499.95 per month for 1 Gbps. Construction is scheduled to begin spring of 2013 and the utility estimates service to be available by the end of the year in most neighborhoods.

The City will be working with i3 America, which uses city sanitary and sewer storm pipes as a makeshift conduit for fiber optic cable. i3's "FOCUS" system uses special armorerd cable designed to withstand a harsh environment and does not affect operation of clean or wastewater systems. Because this method uses existing pipes, construction costs can be up to 70% lower than traditional burying of conduit and fiber. The location of cable is much deeper in the wastewater pipes, so there will be less chances of damage due to construction or the elements.

From the press release:

The City of Sandy last year sponsored a "Why Wait for Google?" contest to gauge interest in fiber Internet service, and to select a neighborhood for a pilot program. Resients in every neighborhood expressed interest in the service , and i3 approached the city with a proposal to extend fiber to every building in the town.

Similar to the Google Fiber deployment in Kansas City, neighborhoods that show the most interest will be hooked up first. Residents and businesses are encouraged to sign up now.

Joe Knapp, IT Director and General Manager of SandyNet offered some details via email:

The great missing debate in contemporary politics is about the role and reach of markets. Do we want a market economy, or a market society? What role should markets play in public life and personal relations?