A free-market think tank is pointing to Ocala as a primary example of why Florida municipalities should reconsider entering the internet business, arguing that government-owned broadband networks saddle taxpayers with debt and underperform compared to private competitors.
In a recent report titled “Florida’s Government Run Internet Experiment Isn’t Working,” the James Madison Institute (JMI), which is a Florida-based research organization that advocates for limited government and economic liberty, critiqued the financial and operational viability of the Ocala Fiber Network (OFN).
The JMI report highlights that despite being in operation for thirty years, OFN has reached just 10.5% of the city with high-speed connectivity and serves only around 5% of the city’s population.
Citing reporting from Ocala-News.com, the institute noted that between 2021 and late 2024, not a single new residential service area was added to the city’s network.
Despite this period of stagnant residential growth, JMI cites Ocala-News.com’s reporting on the city’s continual investment in infrastructure as problematic. It refers to a city-approved measure for $1.6 million for new fiber projects and exploration of new bond financing for a $90 million citywide expansion of services.
JMI argues that such public spending is risky because government networks do not face the same market discipline as private companies. The institute contends that a lack of return on investment pressure removes the consequences for poor performance, allowing political entities to spend indefinitely even if a project is not solvent.
The report suggests that the market is already solving connectivity issues without taxpayer risk, noting that Ocala residents currently have access to at least 13 private broadband providers.
The push to expand fiber across the city has also been met with physical and financial setbacks during the installation process.
As previously reported by Ocala-News.com, the city recently moved to settle a lawsuit for $110,000 following a 2022 incident where a contractor installing fiber optic conduit ruptured a 12-inch reclaimed water line. The strike, which occurred near SE 25th Avenue and SE 14th Street, spilled thousands of gallons of wastewater and caused extensive damage to the roadway.
The city originally spent over $196,000 on emergency repairs and road resurfacing following that incident. Investigations later revealed the drilling company had failed to obtain a required right-of-way permit from the city. While the company disputed the extent of the damages and blamed a lack of proper utility markings, the incident highlighted the hidden costs and logistical hurdles of large-scale fiber deployment.
JMI advocates for cities to step back from acting as internet service providers. Instead, the institute suggests that if municipal leaders want faster deployment, they should focus on reducing permitting barriers and streamlining right-of-way access for private firms, which have invested billions into Florida’s infrastructure over the last four years at no risk to the taxpayer.
Founded nearly 40 years ago, the James Madison Institute is a Florida-based research organization and think tank dedicated to advancing the principles of free-market capitalism, limited government, and economic liberty. The institute bills itself as a nonpartisan “conscience” for Florida’s policymakers that produces research on a wide range of issues, including education reform, technology, and healthcare.