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by nxcho
2904 days ago
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Sweden is about the same size as California but with about one third of its population (and about 2/3 of the population density of US), still it is in the top 10 internet access list in about every metric you can think of (together with for example Norway and Iceland, neither especially densely populated) so I don't think the density argument holds. |
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Contrast Los Angeles. There, Stokab’s business model would be illegal. Builiding out based on demand might mean that wealthier neighborhoods would get fiber a decade before poorer neighborhoods. Disproportionately, white residents would get fiber before hispanic residents. That would be politically untenable (and would be completely impossible to put the government’s imprimpteur behind such an effoet as with Stokab). For that reason, most US cities make Stokab’s business model illegal.
Los Angeles had a fiber proposal: https://www.wired.com/2013/11/la-fiber. It tried to get companies to build a fiber network. By contrast with Stockholm’s approach, neighborhood income and population density could not be a “factor” in the rollout. That means that any ISP would have to build to new neighborhoods that were not economically justifiable. The ISP moreover would have to provide a minimum level of free access to all residents. It would thus have to recover the cost of that from other residents, driving the price higher and decreasing the competitiveness of the product. Unsurprisingly, nobody took up Los Angeles on that proposal. Nobody would build it, it made no business sense.
In Stockholm, fiber was a simple business proposition, built with private capital. In California, it was a social justice initiative, unattractive to private capital. Which is not necessarily itself a problem, but if you want to do that you need to be willing to build it with public money.