LOCAL SELF-RELIANCE

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WHY BOTHER?

If there are problems in setting up a system of TV viewer/owners, there are also many potential benefits to the local community. Profits, for example, will stay in the area.

"In Davis," notes Kahn, "whatever income is generated can be used to upgrade the system or to give our members rebates. And of course, the city government expects to receive an annual $60,000 from its 3% franchise fee."

"Another thing we feel very strongly about," says Corbett, "is that the jobs generated by the system should go to local people. The insurance policy, for example, will come from a community company, and deposits will be made in local banks."

"That's important," Wagner adds. "In a traditional arrangement, you pay a local company whose corporate headquarters are in, let's say, Atlanta. Within 24 hours, any cash that's generated is consolidated in an Atlanta bank to increase the company's interest revenue. It follows, then, that keeping the money in local banks could add hundreds of thousands of dollars to the community's available loan pool."

At this point, however, no one in Davis is willing to call the cooperative a working model for other communities. The project is too new. But those towns that are wary of outside ownership of their future communication services—and are also critical of city government ownership—can watch Davis to evaluate yet another possible path.

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