Government-owned broadband networks have a dismal track record. They routinely fail financially, underperform operationally, and saddle taxpayers with decades of debt. Nevertheless, several Florida municipalities are pushing to expand them, even as private companies invest billions to deliver faster, cheaper, and more reliable internet across the state. The track record is clear, the outcomes are predictable, and Florida cities should put a stop to it before more taxpayers foot the bill.
National private broadband investment has topped $90 billion a year on average since 2020, up from $69 billion a decade earlier. In Florida, Spectrum Internet is investing $7 billion in rural fiber construction and has connected over 35,000 homes ahead of schedule. The state’s own broadband office has exclusively awarded provisional BEAD grants to private internet service providers (ISPs). All of this investment is flowing in at private risk, with no exposure for taxpayers.
Ignoring private ISPs’ massive investments, several Florida cities are building their own broadband networks — known as government-owned networks, or GONs — with public money. Unlike private operators, which lose customers and capital when they underperform, government-owned networks face no equivalent market discipline. Rather than shutting down, underperforming GONs can lean on the millions already invested as justification to keep going, even requesting additional funding if needed. Poor results become an argument for more investment, not less.
Florida policymakers recognized these risks years ago. State law requires government-owned networks to prove they can turn a profit and cover their debt within four years or they must shut down. It also bars them from subsidizing the price with money from other public revenue sources like utility revenues or local fees. If the state legislature thought this was risky enough to require financial safeguards, why are cities charging ahead anyway?
Take Ocala Fiber Network (OFN) for example. After thirty years of operation, OFN has reached just 10.5% of the city with higher speed connectivity and only serves around 5% of the city’s population. Between 2021 and late 2024, not one new residential service area was added. The city is doubling down anyway. In January 2025, it approved $1.6 million for new fiber infrastructure and is exploring bond financing for a $90 million citywide expansion.
This massive public spending comes even as competitors like Wire 3 plan to invest $100 million to build a fiber network serving “tens of thousands of Ocala and Marion County residents” by 2027. Ocala residents already have access to at least 13 private broadband providers delivering fiber, cable, fixed wireless, or satellite connectivity that are over 30 times faster at comparable or lower prices.
If anything, the people advising the city treat the lack of accountability as a selling point. In a January 2026 presentation to the city council, Uptown Services argued that ‘less ROI pressure’ is a key advantage of government-owned networks over private ISPs. But less pressure to generate a return on investment also means there are fewer consequences for poor performance. A government network with a murky return threshold can keep spending indefinitely, because the decision to continue is political, not financial.
Ocala is not alone. Williston is building a $4.6 million loan-financed fiber network in a town of 3,400 that already has eleven internet providers. In Gainesville, five of seven city commissioners voted to reject a residential fiber expansion, citing concerns about the state’s four-year profitability requirement.
Proponents of government-owned networks argue they keep prices competitive, serve underserved communities, and ensure local control. If true, the track record should reflect it. Research from the University of Pennsylvania found that not one of the examined municipal fiber projects could remain solvent without outside help. In one case, Provo, Utah spent $39.5 million in bond financing on a municipal fiber network, eventually sold it to Google for one dollar, and paid $3.3 million a year for over a decade to pay back their debt. Although GONs are marketed as self-sustaining enterprises, ninety-three percent required additional funding. Seventy-three percent were actively losing money in their most recent fiscal years, falling further into debt rather than recovering. Even assuming the best-case financial management scenario, still more than half would fail to break even.
When private networks underperform, investors lose their money. When government networks underperform, its the taxpayers who lose money. Florida cities should leave broadband to the private sector, which is already delivering results without putting a single taxpayer dollar at risk. If municipal leaders want faster deployment to underserved areas, they should reduce permitting barriers and streamline right-of-way access — not become ISPs themselves.
