Re: They should now make cities request that they build in their city.
Why would any city request RCN or any other overbuilder to come in & install an HFC system? As a local franchising authority, any municipality would likely first go to its franchised operator rather than invite in a competitor, wouldn't you think so? Alternatively, if a City decided to install its own municipally-owned system in the form of a "REQUEST for proposal," such a venture would have to be competitively bid and subject to that State's union labor laws. Not the most profitable way to install a local cable system, wouldn't you agree?
RCN has a corporate strategy. It looks for good demographics in major markets and seeks out those neighborhoods with above average density with the fiber can come within 900 feet of sought after subscribers. Why should it alter that strategy and submit itself to the whims of local government "requests" where it would enter a more competitive and regulated process? Sorry, have to disagree with you on your conclusion here.
On point, the key to RCN is LA is lobbying & understanding of local political issues. RCN wants to be in LA. Its a tremendously under-served market when it comes to cable. It is worth their time & effort to push for a fair deal in LA. If it can't get a good deal in LA, then it should step away. But to equate that kind of outcome to the strategy you suggest is to be blind to market opportunities that exist in various markets in the country. These opportunities are not going to come out say "here I am, please come here and build."
The most lucrative markets are likely to be the toughest to gain approval. Proper political pressure, in time, should enable RCN to be successful in LA. Without sufficient competition, the residents of LA will suffer, as they have over the past five years. The politicians should know this. If they don't, they soon will. Time for RCN to get more political, if you ask me. |
