Syracuse Explores Municipal Broadband Network

Syracuse, N.Y. Mayor Stephanie Miner said she is researching the possibility of building a city-owned fiber-optic network to improve access to high-speed Internet service in Syracuse. 

Miner said a public network may be the best way to ensure that Syracuse has affordable, high-speed service.

The economics of such a municipal broadband network will be interesting, as it will matter whether Verizon Communications or Time Warner Cable, the current telco and cable TV providers, decide to upgrade their networks beyond 100 Mbps, or possibly up to 1 Gbps, over time. 

Assuming Syracuse were to proceed, one might anticipate a reaction by both the other providers. 

As always is the case for high speed access markets where there are three leading providers, each of the contestants might reasonably expect to get only about 33 percent take rates, over the long term. 

Unless the Syracuse high speed access network contemplates also becoming a linear video subscription provider, that will pose tough payback challenges, as the whole cost of the network will have to be earned back from one service.

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