I'm a big believer in free markets, obviously, but neither markets nor my belief in them are infallible. Take my Internet service. Since I moved to a small island town in Maine in 2005, my choice of providers has been non-existent. No cable or phone company wants to invest a dime in these small communities. Verizon set me up with two basic phone lines and left it at that. Voice mail? Call waiting? Such standard business services are just not available where I live, Verizon representatives kept telling me with a mixture of mirth and boredom. Neither is DSL, obviously. I might as well have requested free back rubs and phone bills printed entirely in Klingon.
So for my web and e-mail needs, I've muddled along with the execrable Internet service provided by HughesNet, a.k.a. DirecPC. I had to pay 750 non-refundable dollars just to get hooked up with a dish and a satellite modem, and after that, Hughes sucked 60 dollars a month out of my account — not a problem except for four things. When it rained or snowed or stormed, the connection went down. Even under the best atmospheric conditions, download speeds were glacial, better than dialup but not dramatically so. Upload speeds were five times worse — transferring a gigabyte and a half worth of images to my photo website would take easily 24 hours.
To top it all off, there was the crap pile of unadulterated idiocy that HughesNet humorously calls its Fair Access Policy. As a $60-a-month subscriber, I was entitled to just 100 megabytes of downloaded material a day. 100 Mb is shockingly little in the era of YouTube, iTunes, webcasts, bit torrents, automatic OS updates, and Internet porn PDF policy papers.
Worse: you have no way of knowing when you've reached your daily limit. Even worse than that: when you do bump up against your 100 Mb threshold, HughesNet ... cuts you off for 24 hours. They don't even send you an automated, polite e-mail at 80 or 90 Mb. Once you hit the limit, they just turn off your account for a day, necessitating calls to some tech support call center in New Delhi or Bangalore on the off-chance that (hope springs eternal) something else is amiss with your Net connection. And no, charging 'à la carte' for any content over 100 Mb won't do, HughesNet has decreed (believe me, I offered). It's not an option. Too much hassle for their billing department, I guess.
A 100 Mb daily limit was perhaps a swell idea in 1998 or thereabouts; in 2007, it is the equivalent of waving a Bumblesque middle finger in your customers' faces.
"Please Sir, may I have some more?"
"Get out of my sight, you rabble!"
So lest we forget: that, too, is the free market.
And now my town has stepped in. Earlier this year, it partnered with a wireless broadband upstart called RedZone, and kicked in 75,000 dollars of tax revenues, thus covering roughly 20 percent of RedZone's initial investment in this town.
The RedZone network has been up and running, and steadily expanding, for a few months now. From a technical point of view, it is an insanely challenging crazy-quilt of small but powerful transmitters; they are supposed to cover the better part of three geographically disparate communities — each easily five or six miles from the other — that together form one municipality. The terrain is hilly, even mountainous here and there, and there are lots of people who live on private roads, well off the beaten path. Though the boonies-dwellers will obviously be among the last to get hooked up, RedZone seems to be pulling its ambitious scheme off quite nicely. More and more of my neighbors, near and far, are coming online, at half the price and double or triple the speed of HughesNet's service.
RedZone kicks a small part of our subscriber fees back to the town, so that in roughly ten years, one hundred percent of the town's cash outlay will have flowed back into its coffers, and any continuing revenues will be profit for the town from that point forward.
Meanwhile, customer service is exemplary. RedZone's founder and owner, a smart and affable entrepreneur called Jim McKenna, has personally been to my home on two occasions to install my receiver and tweak a bunch of settings that had hampered initial reliability. He also promptly responded, often in a matter of minutes, to my phone calls and e-mails while the service was still less than perfect.
Now, for the sake of libertarian purity, I'd have preferred it if RedZone had come in without support from the town. But decades of "letting the market take care of it" had clearly resulted in a lack of options for rural Mainers, and in no competition to speak of. Broadband Internet, in our day and age, is as crucial as telephone service. You could also argue that it is as important to the business health and common good of a community as the local sewer system — a municipal amenity that is pretty uncontroversial (not many people, I'd wager, feel that the sewers should be privately owned).
Of course, RedZone is privately owned; it just needed a partial, reimbursable cash injection from local taxpayers to make it worthwhile to serve us. I'm not crazy about governments correcting the perceived failings of the market, but not every principle can be correctly applied in every situation, and it seems to me that this is a textbook example.
If you don't agree, fine. Let me know, and I'll post a rebuttal — unrestrained, for a change, by slow connection speeds, arbitrary load limits, and sudden rain clouds.
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