Like many small towns across America its population had stagnated as residents moved away for the convenience and services of the big city. But in recent years Chanute has turned things around and is growing again. It is one of the few rural towns across the US to be able to make such a claim. And how has it managed this feat? By building its own broadband network to serve businesses and schools. But it wasn't easy as entrenched corporate interests attempted to halt the project by lobbying state legislators in Topeka to forbid Chanute from going forward with its plan.
Chanute tried to court telecom giant AT&T to help build the network. AT&T turned down Chanute's overtures. Since AT&T wasn't interested, one would think they would have no problem with Chanute's plan to build their own network, but one would be wrong. You see AT&T already offered service in Chanute, but the service is subpar and comes with data caps and expensive fees for exceeding those caps. So long as AT&T has a monopoly on internet service in Chanute, they can get away with providing subpar product and service to Chanute. So, it is no surprise then, that Kansas senators, and allies of the telecom giant introduced Senate Bill 304 which would have stopped Chanute from establishing its own broadband service.
Chanute Utility Director Larry Gates objected to the legislation saying, “It’s about home rule, local choice, it’s not about what happens in Topeka.” The home rule arguments won the day, and Chanute went forward, and these days Chanute brags on its website of "exceptional broadband infrastructure!"
Chanute is planning to offer the service to all its resident. They can offer faster service (1gbps vs 6mbps) than AT&T, at a lower rate ($40 a month vs $100) than AT&T, with no data limit (AT&T limits data to 150Gb per month). It is an example of how, when leaders make an effort, that government can get the job done better for customers than for-profit megacorporations. But for all the talk of free markets and competition, AT&T doesn't want any, and are taking legal action to prevent it, saying
Any decision made by the KCC could impact AT&T’s business operations in the area, which is why we asked to intervene in the proceeding,” the company said in a written response to questions from The Eagle. “AT&T remains interested in both broadband issues and the work of the KCC.”
See that? Having competition from an entity that can do things more efficiently than a monolithic giant like AT&T is a threat, and must be stopped. But Chanute officials are confident they will win the fight:
The conventional wisdom repeated so often by the Washington Consensus crowd is that business can operate more efficiently and effectively than government, and that government should strive to operate like private business. It is repeated so often it has become a mantra. Challenging it will earn the same rebuke in the Beltway as challenging religious myths. But as we see in these examples, sometimes government is just a better way to do business.
Larry Gates, Chanute’s utilities director, said the city is ready to issue the bonds and start hooking up customers as soon [as]it gets the commission’s OK. “This is our last hurdle,” he said. “I imagine we’ll do it right away.”But Chanute isn't alone in challenging the private sector in order to offer better service to their residents. The leaders of a small town in the southeastern portion of Kentucky, Somerset, with a population of about 11,000 took a look at local gas prices and noticed a trend: gas prices in Somerset were higher than in surrounding areas -- about 20 to 30 cents more. With a median household income far below that of the rest of the state, Somerset residents were feeling squeezed. City leaders decided to take action.
After years of complaints about high gas prices in Somerset, Ky., the city council and mayor did something about it. Last month, Somerset began selling gasoline to the public.
"It should have been this way years ago — fair," says Bob Thomas as he fills up his green pickup truck at the municipal Somerset Fuel Center.
The price is $3.36 a gallon, lower than the statewide average.The price has since fallen to about $2.60 a gallon, which is about the Kentucky average.
The conventional wisdom repeated so often by the Washington Consensus crowd is that business can operate more efficiently and effectively than government, and that government should strive to operate like private business. It is repeated so often it has become a mantra. Challenging it will earn the same rebuke in the Beltway as challenging religious myths. But as we see in these examples, sometimes government is just a better way to do business.
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