Tag: "misinformation"

Posted July 10, 2009 by christopher

In two articles, Jesse Harris offers some insight as to how one can evaluate UTOPIA as a success or failure. In the first article, "Defining UTOPIA's Success," he looks at some of the indirect benefits from the network.

Financial success is the most obvious kind. It’s very easy to look at expenditures and revenues and come up with a bottom line figure. I don’t mean to discount the importance of coming up with a positive number at the end of that statement, but it really isn’t the entire financial picture. (Take a look at my breakdown of Provo’s real and potential savings from iProvo for a good example.) Orem, for example, is saving somewhere in the neighborhood of $600K per year in telecommunications costs by using UTOPIA fiber in their city. None of the other cities have released similar figures (at least not that I am aware of), but I think it safe to say that they are experiencing similar savings. Such an approach also fails to recognize that incumbent providers are forced to offer better service and pricing to attract and retain customers. Based on national figures, a UTOPIA-served neighborhood is likely to save 25% or more off of telecommunications costs.

In the second and longer article, "FUD Alert: Utah Taxpayers Association Continues to Bend and Cherry-Pick the Truth," he directly answers one of the fiercest critics of UTOPIA - the UTA.

His response is well worth a read as a model example of how to respond to these ignorant attacks. We cannot allow lies against community broadband to go unchecked - thank you Jesse for your strong response.

Posted June 3, 2009 by christopher

Jim Baller and Casey Lide are two of the foremost experts on municipal broadband systems in the United States. This report offers a clear and rational defense of publicly owned broadband systems. The discussion takes on philosophical, economic, and pragmatic arguments and comes to the conclusion that communities should not be prevented from building their own networks.

From the Intro:

The Tennessee Broadband Coalition has asked the Baller Herbst Law Group to respond to the main criticisms that opponents of public Fiber-to-the-User (FTTU) initiatives have raised in Tennessee and elsewhere. The Coalition would like to know whether any of these criticisms is valid, and, if so, what lessons the Coalition can learn from them to avoid or mitigate similar problems in Tennessee.

Over the last decade, Baller Herbst has been involved in most of the leading public communications projects in the United States. In almost all of these projects, the incumbent telephone and cable companies have rejected or ignored the locality’s invitation to join in cooperative efforts that would benefit all concerned and have instead mounted massive media and lobbying campaigns in opposition to the proposed public network. Often, the incumbents have funded support from industry “experts” and artificial “grassroots” groups (which have come to be known as “Astroturf”).

In their campaigns, the incumbents and their allies have typically included emotional appeals to private-enterprise ideology; flawed statistics; complaints about supposedly unfair advantages that municipalities have over the private sector; attacks on the motives and competency of public officials; and false or incomplete, misleading and irrelevant examples. In many cases, these arguments have mirrored the unsuccessful arguments that the major electric power companies and their allies made against municipal ownership a century ago, when electric power was the must-have technology of the day, and thousands of unserved or underserved communities established their own electric utilities to avoid being left behind in obtaining the benefits of electrification.

Posted May 18, 2009 by christopher

Cities investigating community fiber networks are used to scurrilous attacks from both incumbents and anti-government "think tanks," which are often directly funded by private service providers. Usually the attacks aren't as silly as the one that the John Locke Foundation levied against Salisbury, North Carolina.

The Salisbury Post covers the situation. Indyweek's coverage was a bit more hostile, and appropriately so.

Though attacks on community broadband from anti-government groups are common, this report betrays either a stunning lack or technical expertise on the part of the writers, or an assumption that the reader is totally ignorant. Fortunately, Salisbury has confronted them head on, as should any community in a similar position.

Back in 2005, the American Public Power Association debunked many of the same claims and the same flawed methodology used then to attack municipal cable providers. We have collected other reports since then that debunk the claims of these anti-government groups.

Posted May 18, 2009 by christopher

This paper provides evidence that municipally owned and operated cable television enterprises are financially viable and provide large rate savings to their communities. The findings contradict allegations in Costs, Benefits, and Long-Term Sustainability of Municipal Cable Television Overbuilds, a 1998 paper authored by Ronald J. Rizzuto and Michael O. Wirth, that such enterprises are likely to be poor investments for cities. The authors claim that analysis of financial histories of the cable enterprises in Glasgow (Kentucky), Paragould (Arkansas), and Negaunee (Michigan) “clearly indicates that [they] have been poor investments from a pure business perspective.” They are pessimistic about the fourth, Cedar Falls (Iowa). The authors contend that these enterprises “have not generated [or will not generate] sufficient cash flows to cover their out of pocket cash needs.... None ... [is] currently sustainable over the long run.” However, by the incorrect criteria and analysis that Rizzuto and Wirth use, few new enterprises—public or private—would pass financial muster. The authors further contend that the only reason these utilities have been able to remain solvent is because of various subsidies, personal and property tax transfers, or interest-free loans. Rizzuto and Wirth’s conclusions are not surprising since their paper was partially funded by Telecommunications, Inc. (“TCI”), the private, incumbent cable television provider in Cedar Falls at the time the city was creating its municipal cable enterprise. Although Rizzuto and Wirth’s paper was published seven years ago, critical review of it is timely and important. Formation of municipal cable enterprises is a major public policy issue; private broadband providers have been successful in having several states bar or place crippling limitations on the formation of such enterprises. The time that has elapsed since the paper was published provides a good perspective for checking the authors’ predictions about the financial viability of the four municipal enterprises. Most importantly, however, Rizzuto and Wirth’s paper is often cited currently by those who oppose municipal entry in the cable television industry and related broadband industries. Their paper is widely quoted in reports of other organizations that oppose formation of municipal cable enterprises.

Posted May 14, 2009 by christopher

In Orwellian fashion, many of the examples offered as disasters are actually tremendous success stories. Many of the figures used as contemporary evidence against municipal broadband are based on case studies of cable television systems from a report that is seven years old. Even if it were still timely, its conclusions have been thoroughly debunked.

Posted May 14, 2009 by christopher

From the Executive Summary (stats from 2005): The attention of policymakers in both parties is now focused on the question of how to promote competitive broadband markets that will deliver high-speed Internet access to all Americans at affordable rates. It is a difficult problem. Present estimates are that around 30% of US households subscribe to DSL or cable modem service. This compares to over 70% in countries like South Korea. Virtually every rural state remains underserved and uncompetitive. In urban areas, many families are priced out of the market. The telecom and cable kings of the broadband industry have failed to bridge the digital divide and opted to serve the most lucrative markets at the expense of universal, affordable access. As a result, local governments and community groups across the country have started building their own broadband networks, sometimes in a purely public service and more often through public-private partnerships. The incumbents have responded with an aggressive lobbying and misinformation campaign. Advocates of cable and DSL providers have been activated in several state capitols to push new laws prohibiting or severely restricting municipalities from serving their communities. Earlier this year, Verizon circulated a “fact sheet” to lawmakers, journalists and opinion leaders proclaiming the so-called “failures” of public broadband. Many of the statistics come from a widely discredited study of municipal cable TV networks published in 1998. This paper debunks these lies case by case, juxtaposing information direct from the city networks with quotations from the telco propaganda. The results are unequivocal and damning.

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