Buckeye Reporter

On Tuesday, The Buckeye Institute released a policy memo addressing the shortcomings of government-owned broadband networks (GONs) and advocating for public-private partnerships to enhance broadband access.

Greg R. Lawson, a research fellow at The Buckeye Institute, discussed how local governments have supported GONs to provide internet services but have faced failures, as evidenced by Bryan, Ohio's recent decision to discontinue its municipal internet service due to costly infrastructure upgrades and competition.

Lawson recommends that local governments should "improve broadband access by fostering a private investment environment that encourages private providers to serve underserved areas." He suggests streamlining permitting processes and offering targeted incentives to make it more attractive for private companies to invest in local broadband infrastructure.

He emphasizes that "[f]acilitating public-private partnerships can mitigate risks for taxpayers and allow cities to benefit from private sector expertise while still maintaining some oversight to ensure that community needs are met."

The memo highlights past issues with GONs in Lebanon and Bryan, Ohio. In both cases, the municipal efforts struggled with substantial investments, ongoing maintenance costs, and competition from the private sector. These challenges led Bryan's Board of Municipal Utilities (BMU) to cease providing internet services after over two decades.

Lawson points out that GONs often require significant taxpayer subsidies and can divert resources from essential services such as public safety and infrastructure maintenance. As federal COVID-19 funds deplete and cities face tax revenue shortfalls, continuing these projects could necessitate tax increases or new fees.

The Buckeye Institute advocates for municipalities to foster environments conducive to private investment rather than directly competing with established providers. This includes streamlined regulations and incentives like the Ohio Residential Broadband Expansion Grant Program.

In conclusion, Lawson advises Ohio policymakers to prioritize essential government functions over competing with private broadband providers. By easing regulatory constraints and encouraging public-private collaborations, cities can achieve high-quality internet service without excessive bureaucracy or taxpayer expense.