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tyrellcorp
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tyrellcorp,
User Rank: Light Beer
8/30/2016 | 9:16:50 AM
Re: There's no such thing as a free lunch
They profit by selling service to local biz at market rate.  And 2/3 of the town's area is commercial. The ISP gets to ride on fiber already built, the residents get free Gigabit with a little bit of city funds to help with fiber maintenance. Seems like a pretty good arrangement.
seffros
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seffros,
User Rank: Lightning
9/17/2014 | 2:31:19 PM
There's no such thing as a free lunch
"FREE?"  How much, exactly, have the good citizens (and the rest of us, if they got any federal grants) paid since 2006 to build this system?  Then add the $300 per sub, then add the maintenance and upgrade costs that someone is going to have to pay for and you get an analysis that says this is far from "free". Hidden, yes, cross-subsidized, yes, but not free. There's no such thing as a free lunch.
sam masud
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sam masud,
User Rank: Light Sabre
9/17/2014 | 2:29:24 PM
Moving
Now packing to move to N. Kansas City! If ISPs can provide so-so service and make a fat profit, why can't a muni put residents first and run a network efficiently without gouging customers. I'm pretty sure I've been advocating for a munis even longer than C. Settles :-)

Hey, the government provides Medicare and has an overhead of about 3 percent v. 20-30 percent overhead for the "health" insurance industry. It's a no-brainer!

 
KBode
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KBode,
User Rank: Light Sabre
9/17/2014 | 12:16:33 PM
Re: Will it work?
Hard to tell without seeing the numbers, but I'm sure the free (or not so free as the case may be) marketing this company is going to get from this will certainly help them gain local name recognition after likely hiding under the Google Fiber shadow.
kq4ym
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kq4ym,
User Rank: Light Sabre
9/17/2014 | 10:33:00 AM
Re: Will it work?
It will be interesting to see how this free deal works out over time. I suspect there may be some continuing negotiations in a few years as the parties find costs (and losses) higher than expected. There's probably a cleverly worded "out" in the fine print of the contracts that don't saddle either the city or the contractor with undue "unseen" costs.
thebulk
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thebulk,
User Rank: Light Sabre
9/17/2014 | 2:40:58 AM
Re: Will it work?
@smkinoshita I agree this's will likely attract forward thinking people, but will it attract enough to make a difference. Will the community really see a startup boom because of this network?
smkinoshita
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smkinoshita,
User Rank: Light Sabre
9/16/2014 | 10:09:34 PM
Re: Will it work?
@Mitch Wagner:  I think it has a decent chance of working.  The loss leader approach is interesting, and I think it'll create a kind of environment that will attract forward thinking people.
jasonmeyers
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jasonmeyers,
User Rank: Blogger
9/16/2014 | 4:58:43 PM
Re: Will it work?
Well, existing users have been paying for less bandwidth for the past eight years, so I would think that getting more for free would be perceived as valuable. As for new customers, perhaps the $300 installation fee will help them perceive the service as valuable.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
9/16/2014 | 4:40:41 PM
Will it work?
It'll be interested to see how the free model works. People tend to not value that which they don't have to pay for. It's why spam is a problem, and why cities charge for public transportation even while they desperately want people to use public transportation rather than cars. 

When I read the headline, I thought it said North Korea was providing free gigabit. But this is totally different. 


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