Provo's Internet push is ill-advised

A principled approach to government spending would limit a local government to the provision of those services of substantial value to its citizens that could not be provided by the private sector and, therefore, that would not be available but for government intervention. Examples would include local roads, police protection, snow removal and courts.

The mayor of Provo's push for, and apparent City Council acquiescence to, a citywide fiber-optics network that would provide Internet access to each home in the city is, we believe, not based on this kind of principled approach to the provision of services via the government, nor is the similar interest of other city governments in the extension of a fiber-optics network along the Wasatch Front.

First, the service that some in the Provo city administration want to force on the citizens of Provo is unlikely to be of substantial value relative to its true cost. If faced with the full cost, its seems unlikely that all or even a majority of the citizens of Provo would choose to spend their money on expanded bandwidth and more rapid Internet access via a fiber-optic connection, especially since Internet access is widely available through local phone lines.

However, it is important to note that literally dozens of firms have gone bankrupt across the country trying to provide broader bandwidth and faster access. They have done so because there is apparently little demand for either.

So why, we ask, should Provo city step in and force its citizens through its power to tax and bond, to purchase something for which they would not be willing to pay the fair market price? The market is a stern disciplinarian; it penalizes those who try to provide something that consumers really don't want when they have to pay the full cost. Why should Provo city second-guess the market in this of all cases?

Second, every citizen of Provo with a phone line and computer has access to the Internet if they wish. Access is potentially available through cable TV lines. Wireless technologies provide access in some circumstances.

While we understand why city bureaucrats expand fiefdoms by supplying such services at taxpayer expense, we see nothing unique or distinctive about fiber-optic Internet access that would make private sector provision impossible or even difficult. Private firms are very good at undertaking large and expensive projects if there is demand for them.