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[Ars] Bigger than Google Fiber: LA plans citywide gigabit for homes and businesses - Page 2

post #11 of 17
Quote:
Originally Posted by Darkpriest667 View Post

Well looks like Google has lit the fire on upgrading our infrastructure.

Great, not all LA has to do is come up with $3 to $5 billion ... which really means about $9 to $15 billion, because government projects NEVER cost what they plan to cost ... just ask Boston about the "Big Dig". Considering that California already has a structure budget deficit and they aren't doing anything to fix it, and they already are $132 billion in current debt ...

Sorry I just don't see this happening.
post #12 of 17
Quote:
Originally Posted by 47 Knucklehead View Post

Great, not all LA has to do is come up with $3 to $5 billion ... which really means about $9 to $15 billion, because government projects NEVER cost what they plan to cost ... just ask Boston about the "Big Dig". Considering that California already has a structure budget deficit and they aren't doing anything to fix it, and they already are $132 billion in current debt ...

Sorry I just don't see this happening.

"LA expects the fiber buildout to cost $3 billion to $5 billion, but the cost would be borne by the vendor."

Reading the article would help you see it.
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post #13 of 17
Quote:
Originally Posted by Fickle Pickle View Post

"LA expects the fiber buildout to cost $3 billion to $5 billion, but the cost would be borne by the vendor."

Reading the article would help you see it.

And what vendor is basically going to give (a more likely amount than the estimates) $5 billion dollars for almost nothing in return? They plan on it being a free internet service for the most part so they wouldn't even get to many subscriptions out of it.

LA and CA have bigger fish to fry than trying to get gigabit internet to a ton of people who will never even get close to needing that much bandwidth.
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post #14 of 17
Quote:
Originally Posted by Fickle Pickle View Post

"LA expects the fiber buildout to cost $3 billion to $5 billion, but the cost would be borne by the vendor."

Reading the article would help you see it.

Yeah, I read it, did you read the next lines?
Quote:
"If they're not willing to do that, our City Council may consider a general fund transfer to reimburse those departments, but we're going in with the assumption that the vendor is going to absorb those up-front costs to make sure they can do their buildout in a timely fashion."

And I know how city governments work, my brother-in-law was a Maryland State Senator.

Fact of the matter is, once the City WANTS this, they won't care if vendors won't come in and not do it at 100% of their cost. If it was profitable for a private company to do it, they would have already done so. So the city will either have to throw tax payer money at the companies to entice them (as all the other cities doing Google Fiber have), or the city will have to pay the full cost.

That, is how reality works in government.
post #15 of 17
Quote:
Originally Posted by 47 Knucklehead View Post

Yeah, I read it, did you read the next lines?
And I know how city governments work, my brother-in-law was a Maryland State Senator.

Fact of the matter is, once the City WANTS this, they won't care if vendors won't come in and not do it at 100% of their cost. If it was profitable for a private company to do it, they would have already done so. So the city will either have to throw tax payer money at the companies to entice them (as all the other cities doing Google Fiber have), or the city will have to pay the full cost.

That, is how reality works in government.

Not true; new infrastructure like this can be (and with something this large of scale, it will be) profitable. The problem with our big publicly-traded ISPs is that they are very resistant to spend money when the competition isn't. This is why when Google deployed Gigabit in Kansas City, and suddenly everyone was clamoring for it, the ISPs tried to sue saying that it wasn't fair that the city opted to help fund it. What city wouldn't? Those ISPs just missed the boat! That kind of infrastructure is hugely valuable, and will become more so in the coming years. Google seriously stirred up the hive (which is awesome).

When companies get comfortable where they are, they are very resistant to change. We've seen basically zero competition in the ISP space for years, we need more stuff like this.
Edited by SectorNine50 - 11/7/13 at 1:07pm
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post #16 of 17
Quote:
Originally Posted by DVLux View Post

I could have sworn California was already in debt/broke... So how is this going to happen anytime soon/without costing people a fortune?

 

The state may be broke but the cities have their own treasuries.

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post #17 of 17
Quote:
Originally Posted by Penryn View Post

The state may be broke but the cities have their own treasuries.

Except San Bernardino, they are broke and have already declared bankruptcy too.
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