Provisions have been made for Los Angeles to formally make a proposal to bring free broadband to the city. However, unlike Google Fiber, no set service provider has been named to actually provide the service to LA’s inhabitants, both business and residential. Rather, unless a deal is made between the city of Los Angeles and an internet provider, the estimated $3b – $5b cost would come directly from the company in charge of the network. Taxpayers would be free of paying for internet if the deal actually takes place, but will be limited to 2MBPS – 5MBPS with paid plans offered for up to 1 GBPS.

Los Angeles Information Technology Agency General Manager Steve Reneker told tech site Ars Technica:

“The city is going into it and writing the agreement, basically saying, ‘we have no additional funding for this effort.’ We’re requiring the vendors that respond to pay for the city resources needed to expedite any permitting and inspection associated with laying their fiber. If they’re not willing to do that, our City Council may consider a general fund transfer to reimburse those departments, but we’re going in with the assumption that the vendor is going to absorb those up-front costs to make sure they can do their buildout in a timely fashion.”

Los Angeles is practically attempting to monopolize internet service for its nearly four million inhabitants, but also mandating an open network for existing internet providers to buy into. Essentially, “winning bidder” would be in charge of the service with Los Angeles regulating pricing and service. What it basically boils down to is a monopoly of wireless service (broadband and cable are also being considered as part of the proposal) for the company that foots the bill, while other providers will be allowed to continue providing service so as to not only run out of business, but also lessen the cost that the highest bidder would have to pay.

Outside of the sticky business legality ramifications, what matters the most is that LA wants to become the United States’ largest city to provide free broadband service to the entire city. This should prove to be a great service for those who can’t afford high-speed internet, as well as hopefully increase productivity and modernization in low-income public schools and generate growth for small businesses.

[via Ars Technica]