In a nearly unprecedented act of foolishness, the Philadelphia city government is planning to wire the entire city for wi-fi Internet connections.
The plan, projected to cost between $7 million and $10 million, is, predictably, being praised by some. How, they ask, could such a thoughtful public service be foolish?
We’re glad they asked and here’s the primary answer: Providing Internet service is not a proper function of government.
And here’s the secondary answer: Philadelphia’s city hall is ruining a great business venture by taking on a project that should be left to the private sector, which would do the job better and for less money.
The plan is to build a wireless mesh network with antennas placed on street lights and traffic control devices on every one of Philadelphia’s 135 square miles. The City of Brotherly Love will then be the world's largest wireless Internet hot spot. Broadband access will be either free or cheap for the city’s 1.5 million residents.
That’s terrific for those who will use it, but it’s a burden for those who won’t, yet will still have to pay for it through their tax dollars.
But it also means that entrepreneurs are missing out on a business opportunity. Yes, private-sector vendors will sell the gear to the city and install the system. But then what? There will be no provider to compete with other broadband providers to better serve customers or sign up paying subscribers, or to employ workers and grow a business.
When the government decides to provide an important service almost everyone loses. Philadelphia is notorious for its lousy public school system, where public costs are high and failure is rampant. If the city can’t manage a nineteenth-century information sharing model, what makes anyone think that it will do a better job providing access to the Information Superhighway?