Tag: "incumbent"

Posted January 3, 2012 by christopher

It's a new year, but most of us are still stuck with the same old DSL and cable monopolies. Though many communities have built their own networks to create competition and numerous other benefits, nearly half of the 50 states have enacted legislation to make it harder for communities to build their own networks.

Fortunately, this practice has increasingly come under scrutiny. Unfortunately, we expect to see massive cable and telephone corporations use their unrivaled lobbying power to pass more laws in 2012 like the North Carolina law pushed by Time Warner Cable to essentially stop new community broadband networks.

The FCC's National Broadband Plan calls for all local governments to be free of state barriers (created by big cable and phone companies trying to limit competition). Recommendation 8.19: Congress should make clear that Tribal, state, regional and local governments can build broadband networks.

But modern day railroad barons like Time Warner Cable, AT&T, etc., have a stranglehold on a Congress that depends on their campaign contributions and a national capital built on the lobbying largesse of dominant industries that want to throttle any threats to their businesses. (Hat tip to the Rootstrikers that are trying to fix that mess.)

We occasionally put together a list of notable achievements of these few companies that dominate access to the Internet across the United States. The last one is available here.

FCC Logo

As you read this, remember that the FCC's National Broadband Plan largely places the future of Internet access in the hands of these corporations. On the few occasions the FCC tries to defend the public from their schemes to rip-off... Read more

Posted November 15, 2011 by christopher

Any hint that the Comcast-funded effort in Longmont to oppose authorizing the City to provide broadband services was anything but an astroturf campaign of lies has evaporated in the wake of its overwhelming defeat.

If there had been a shred of local legitimacy among the "Look Before We Leap" group that was run by Denver-based strategists, it probably would have kept its website up for longer than a few days after the election. If I were them, I would want to keep a record for the future.

But they don't. Because they were just a bunch of paid public relations people working a job. They didn't oppose Longmont's initiative, they didn't know anything about it. They were collecting a paycheck. And this is what they left behind:

Look Before We Leap, disappeared

The Times-Call has a hopeful reflection about the broadband battle (somewhat classier than the hilarious Neener Neener Neener poke at Comcast).

This time, lobbyists for the telecommunications industry spent even more than they did last time -- about $300,000 -- in trying to convince residents that the city having control over its own property was somehow "risky." Obviously, the lobbyists, including the euphemistically monikered Americans for Prosperity, were only concerned about the welfare of Longmont residents and the health of the local economy. They spent so much money to show just how concerned they were.

But the majority of the voters weren't buying what they were selling. People had the audacity to think for themselves and make up their own minds.

Personally, I would thank the anti-2A folks for pouring so much money into the local economy, except most of its spending was elsewhere. They did pop for a few ads in this newspaper, though, so for that they have my gratitude.

The author, Tony Kindelspire, goes on to note just how amazing it was to see... Read more

Posted November 9, 2011 by christopher

Minnesota's Governor Dayton has already done more for expanding broadband access in Minnesota than predecessor Pawlenty who took the "stay quiet and hope for the best" approach to expanding access in our state.

After being prodded by the legislature (including now-Lieutenant Governor Prettner-Solon) Governor Pawlenty appointed an industry-heavy "Ultra High Speed" Broadband Task Force that exceeded the expectations of many, including myself, with its report [pdf]. I give a lot of credit to a few members, especially "Mikey" and Chairman Rick King of Thomsen Reuters, for that report given the constraints of the environment in which it existed.

Minnesota's Legislature and Governor Pawlenty then created some goals for 2015 and generally ceased any work on ensuring Minnesota could meet the goals. However, some departments (like the Department of Commerce) are using that language to prod broadband providers to consider what steps they can take to get us closer. Despite my frustration, I want to recognize those who are doing all they can to expand access to this essential infrastructure.

Fast forward to this week, when Governor Dayton announced a new Task Force that is supposed to really do things (as opposed to the more common Task Force approach of creating the appearance of doing things).

I am heartened by many of the appointees. There are some terrific people, especially some terrific women who are too often under-represented in technology) that will work very hard to bring real broadband to the Minnesotans that either need their first option or a better option.

And they have their work cut out for them. The state has few options to compel investment from a private sector that sees little reason to invest in an industry with so little competition (St Paul has one high-speed provider: Comcast, and one slower, cheaper alternative - CenturyLink).

For instance, rural Kanabec County took the Ultra High Speed Task Force's recommendation and asked its incumbent to partner in providing better broadband. That went over about the... Read more

Posted November 7, 2011 by christopher

An excellent article drawing wide lessons from the referendum battle in Longmont between the community and Comcast.

The city of Longmont, Colo., built its own 17-mile, million dollar fiber-optic loop in the mid-1990s. The infrastructure was paid for by the local city-owned electric utility, though it offered promise for bringing broadband to local businesses, government offices and residents, too.

For years, though, the network has been sitting largely unused. In 2005, Colorado passed a state law preventing local governments from essentially building and operating their own telecommunications infrastructure.

Behind the law was, not surprisingly, the telecom lobby, which has approached the threat of municipal broadband all across the country with deep suspicion and even deeper pockets. Companies like Comcast understandably want to protect their corner on the market from competition with city-run non-profits. What’s less understandable is the route their interests have taken: Residents and state legislators from Colorado to North Carolina have been voting away the rights of cities to build their own broadband, with their own money, for the benefit of their own communities.

Posted October 28, 2011 by christopher

A common misconception is that local governments award exclusive (or monopolistic) franchises to cable companies and that is why the US has so little cable competition.  However, no local government has done this since the 1996 Telecommunications Act 1992 Cable Act made the practice illegal.

But even before the '96 Telecom Act '92 Cable Act, local governments tended to award non-exclusive contracts to cable companies because they wanted more competition, not less -- as illustrated in this article about Cox preparing to renew its franchise agreement with New Orleans.

Federal laws and Federal Communications Commission decisions also have sharply curtailed the city's negotiating ability.

Even if other companies were seeking permission to provide cable to local customers, said William Aaron, a legal adviser to the council on telecommunications issues, council members could not arbitrarily refuse to renew the Cox franchise. The council could do that only on the basis of certain limited criteria, such as that the company has not lived up to the terms of the 1995 agreement.

Cox has had a nonexclusive franchise to operate in Orleans Parish since 1981, meaning that other companies also can apply to provide cable services, though none has done so. The franchise was renewed in 1995.

For years, state and federal policies have limited local authority to require just compensation for access to the valuable right-of-way because the cable and telephone companies pretended that they would invest more and create competition if local authority were preempted.

Local authority has been significantly preempted in many communities without any real increase in competition or lowering of prices. No surprise there - another victory for companies better at lobbying than providing essential services.

Posted October 26, 2011 by christopher

Below, you'll find a commentary I just posted on the Huffington Post.

Longmont, Colorado has become ground zero for the battle over the future of access to the Internet. Because big cable and telephone companies have stopped us from having a real choice in Internet Service Providers and failed to invest in adequate networks, a number of communities have built their own networks.

Chattanooga boasts the nation's best citywide broadband network, offering the fastest speeds available in the nation -- and the community owns it. That means much more of the money spent by subscribers stays in town, supporting local jobs.

Longmont, a town near Boulder with 80,000 people, offers a glimpse at how difficult it can be for communities to make any level of broadband investment -- the big cable and phone companies hate any potential competition, no matter how limited.

Longmont's elected officials all agree they need better broadband options to spur economic development. That's why they put a referendum on the ballot that will allow the city to use its existing assets to improve local broadband access. Not only are the mayor and city council unanimous in support of the referendum (2A) necessary for this, their opponents in the city election overwhelmingly agree also! And the local paper just editorialized in favor of it as well.

Who then, is spending hundreds of thousands of dollars to derail it? Comcast and its allies, of course. And this isn't the first time.

Back in the 1990s, the municipality-owned electric utility built a fiber ring to modernize its electrical grid. They took the opportunity to lay more fiber-optic cables than they would need, knowing that they could later be used by the city or partners to expand broadband access for all businesses and resident.

Over several years, the City worked with a ... Read more

Posted October 22, 2011 by christopher

Comcast has once again distinguished itself as an extraordinary company - not only do Americans trust it less than any other company on the list, it occupies the two bottom positions.  Big shocker that communities want better local service with their own networks.  

Accoding to the 2011 Temkin Trust Ratings, which looks at the level of trust that consumers have in 143 large U.S. companies in a total of 12 industries, only eight companies earned "very strong" ratings while 26 earned "very weak" ratings.

Comcast was the worst. But it is in the company we would expect - Time Warner Cable and Charter are close to the bottom also.

Posted October 6, 2011 by christopher

Just one day after getting busted for lying about its supporters, a group funded by self-interested groups outside the community is accusing the City of distributing propaganda regarding an upcoming referendum over whether the City should have the authority to use an existing fiber-loop to spur economic development.

We developed a comic that explored the ways cable and phone companies use dirty tricks to fool people into voting against more competition in broadband (such as this "Look Before We Leap" Vote no group).

As if to prove our point for us, that group was busted for outrageously claiming the Mayor wanted people to vote no when the Mayor has been explicit in not just supporting the referendum but in condemning outsider groups like theirs from coming into the community to do the dirty work of anti-competitive incumbents.

Bryan Baum has appeared at several forums in support of 2A, including a Longmont Area Chamber of Commerce forum in which he urged out-of-town opponents of the ballot question to "get out of town" and let Longmont settle its own issues.

The group said "This is obviously a mistake," Merritt said. "We'll get that fixed." Yeah sure. Whoops. We accidentally claimed a prominent figure as a supporter. Their response? They took his name off that list but left his wife's name on their site!

Comcast's front group has zero credibility

This is a group with absolutely zero credibility. But they have tons of funding -- likely from Comcast and incumbent trade groups that fight these initiatives everywhere to preserve what is essentially a monopoly for the cable and telephone companies. We just republished an op-ed outlining some these tactics from 2009.

Now the "Look Before We Leap" group is accusing the City of distributing propaganda.

Longmont'... Read more

Posted October 3, 2011 by ejames

Residents in Longmont, Colorado are preparing for a municipal referendum to utilize an existing fiber optic network.

The referendum is set for Tuesday, November 1, 2011.

At issue is how the city can use a ring of fiber-optic cables it built around the city in the late 90's as part of its electrical infrastructure.  Much of the capacity on the ring remains unused but the city requires approval of the voters in a referendum before it can offer services to local businesses -- which will encourage economic development by creating more telecommunications choices in the community for businesses and residents (some background here).  

This is referendum question 2A:

Ballot Question 2A: Without increasing taxes, shall the citizens of the City of Longmont, Colorado, re-establish their City's right to provide all services restricted since 2005 by Title 29, article 27 of the Colorado Revised Statutes, described as "advanced services," "telecommunications services" and "cable television services," including any new and improved high bandwidth services based on future technologies, utilizing community owned infrastructure including but not limited to the existing fiber optic network, either directly or indirectly with public or private sector partners, to potential subscribers that may include telecommunications service providers, residential or commercial users within the City and the service area of the City's electric utility enterprise?

Big cable and telco operators  have wasted no time in spreading fear and false information to scare voters into voting against using a valuable asset owned by the community. When the community organized a debate for the end of September, the only people willing to defend Comcast's position came from far outside the community to do it.  

Trying to get in the mind of the big incumbents of Longmont, we developed this cartoon (the style is an homage to the "Get Your War On" comic).

Longmont 2A Opposition

Download a higher quality pdf version.

Citizens have responded by... Read more

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