Lafayette: Fiber optics or traffic
  Whether tis noblest to promote government over private enterprise or to focus on the larger problem, namely traffic congestion: that is the question?
  I have watched with interest the activities taking place in Lafayette in connection with the Lafayette Utilities System owned by the City of Lafayette and fiber network heavily promoted by newly elected Mayor/President Joey Durel.
  In late April, the Lafayette City-Parish Council authorized a feasibility study to determine if Lafayette Utilities should get into the cable, high speed internet and phone service business and thereby compete with private industry.
  The plan as I understand it is to build a fiber-to-the-home network in the City to serve residences and businesses. The money, an estimated $100 million or so, is to come from selling bonds that the mayor says will create no risk to the citizens of the City. My guess is that it would be somewhat difficult to sell that many bonds with no collateral other than revenue.
  What surprises is that Mayor Durel comes from a small business background and prior to his election, no one suspected that he would sponsor a proposal that would advocate government competition with private industry. For many reasons, the Mayor and City Parish Council should tread carefully in this area.
  There are many land mines in such a venture that could cause substantial damage to the City and taxpayers, not withstanding proponents’ assurances that such a move is risk free to the citizens of the City.
Although I have not seen a detailed business plan or know if one exists, I know this is a high risk business fraught with pit falls. It is very capital intensive and it is very competitive vis a vis the current providers that are losing access lines and those new ones entering the business that are going broke every day.
  Moreover, just a few years ago, the City Government wooed Cingular into bringing 1,100 jobs to Lafayette. Cingular, Bell South and Cox Communications employ between 1,600 and 1,700 people, have invested between $300 and $400 million in the parish that forms a tax base from which the City/Parish derives over $2.5 million in annual property taxes.
Irrespective of what services Lafayette Utilities System could bring to the City, I think it would send the wrong message to other businesses planning to come into the city or state. Besides I don’t see anything wrong with the services now being provided by private enterprise.
I believe that by far the biggest problem in Lafayette is the horrific traffic problems that exist primarily because previous leaders failed to plan ahead. Every other major city in the state has built express ways or other road ways that have benefited the cities greatly as their population expanded.
  Free advice is worth what you pay for it but I would advise the city/parish officials to focus on the traffic problems and other services inherent to government and lay off of services already being adequately provided by private enterprise.
  That’s my story and I am sticking to it.
  Milo A. Nickel is the former President and COO of Louisiana State Newspapers.

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