On Wednesday March 8th, city leaders received an earful from local residents and the Taxpayers Protection Alliance (TPA) when they took public comments about the city’s plan to build a $72 million municipal network through its electric utility Cleveland Utilities. TPA testified that the project is duplicative and unnecessary, and that there are numerous factors that raise concerns about its viability.
The city anticipates a take rate of 30 percent. In its research, including in the 2020 report “GON with the Wind: The Failed Promise of Government-Owned Networks,” TPA has found that expected take rate percentages rarely materialize when private providers respond to competition by adjusting pricing or services. This is particularly a concern in Cleveland, given that there are already several internet options in the city and Bradley County.
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