8. Competition with Local ISPs?

In some areas private Internet Service Providers (ISPs) feel that CNs or Free-Nets unfairly compete, although the general trend is for smaller businesses to use a Free-Net as a kind of "Trianing Wheels" for the Internet and to quickly "graduate" to ISP professional services. A 1997 summary of local business use (n=217) on the Blacksburg Electronic Village indicates that small businesses (fewer than ten employees) are most likely to take advantage of a Free-Net and that they perceive the free advertising and the opportunity to try the technology as the main benefits. In the BEV study, the majority of small business respondents also said that they sought to increase contact with clients. A smaller number (11%) indicated that they sought to increase contact with suppliers. The research did report increases in contact with both suppliers and clients. BEV Village Mall does not allow for commercial transactions, so this measure was not studied.

Richard Civille, Director of CivicNet has helped to frame the conversation on threats and barriers created by the challenge of financial sustainability. His article "Community Networks and Small Internet Service Providers" offers case studies on CNs that have developed successful partnerships with local ISPs. http://www.civicnet.org/articles/casestudy/aztecisp.html Reporting on a case study of AzTec CN in Phoenix, Civille points out the mutual benefits of the collaboration:

The free public access community network serves as pre-competitive market development for the commercial ISPs. As well, by highlighting links to AzTec, commercial providers add additional value to their services at no additional cost, providing convenient access to useful local information content. This relationship suggests that AzTec will not need to make continual investments in increasing phone lines and modem banks because much of the access requirements will be peeled off by the commercial sector. The commercial sector, focusing on direct access, does not specialize in developing useful local information content. The two roles, access and content, would appear to be complementary.

Unfortunately, not all ISP businesses perceive this complementary relationship. Some community networks supported by local colleges or universities have had to battle with local providers who view public support as "unfair government-supported competition."

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