The city of Martinsville enjoys a unique economic development opportunity presented by the bankruptcy of cable provider Adelphia, suggests consultant Robert F. Sepe, proprietor of Cary, N.C.-based Action Audits LLC. Sayeth the Martinsville Bulletin:
The city could use Adelphia’s existing infrastructure to greatly enhance the Martinsville Information Network (MINet), which now links mostly schools and government offices. The city then could provide companies with “super-high-speed” Internet, voice and video transmissions, which would give Martinsville “a presence anywhere in the world,” said Sepe.
Apparently, the city is taking the idea very seriously. Says the Bulletin: “Action Audits … has determined the city franchise’s value. City officials have declined to release it, though, saying that doing so may hinder any negotiations with Adelphia that may occur.”
If Martinsville winds up taking over its local Adelphia operation, it could provide a model for other communities in Virginia served by the cable company.
Philosophically, I have major problems with local governments getting into the telecommunications business. They don’t possess the expertise to do a good job managing an on-going business enterprise like a cable company. On the other hand, Martinsville and Henry County have every reason to be frustrated by the unwillingness of private-sector businesses to invest in local telecommunications infrastructure — investments that offer enormous social benefits to the community.
Are there no alternatives for communities to incentivize cable and telecom companies to accelerate investment locally without incurring the responsibility of operating the business?
