Tag: "competition"

Posted October 12, 2011 by christopher

We have been closely following the referendum in Longmont, Colorado, that will allow the local government to use an existing fiber loop to sell telecommunications services to the private sector and residents.

Comcast and CenturyLink are opposed because local businesses would have more choices for broadband services -- which would require Comcast and CenturyLink to actually invest in their offerings rather than simply collecting the benefits of a de facto monopoly. It is more profitable for them to invest in astroturf opposition to the referendum than in their physical infrastructure.

When this came up previously, Comcast and its allies spent an unprecedented $245,000 to defeat it by confusing and lying to voters. This time around, big cable may outdo itself. It looks like Comcast and anti-competition allies in the Colorado Cable Telecommunications Association have already spent some $239,000 [pdf] in glossy mailers and phone calls and door knockers to scare Longmont's voters into defeating the 2A ballot initiative.

The Comcast-sponsored Vote No group is called "Look Before We Leap and has already been busted for lying about the Mayor's position on the referendum, claiming he supported their position when he has been emphatically on the record in support of 2A. In fact, his challenger in the Mayoral race also supports 2A, as detailed here in the statements from both candidates on the issue.

Public Persuasion Logo

So who exactly is "Look Before We Leap?" They cannot point to any real local support in the community. The web site is registered to "Melisa Kotecki Schlote" of a PR firm, Public Persuasion that lists both Comcast and the Colorado Cable and Telecommunications...

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Posted October 11, 2011 by christopher

Harold Feld details "double speak" from Deutsche Telekom in the matter of the AT&T takeover of T-Mobile. They have admitted it will kill jobs and is in no an essential outcome for either company.

Two weeks ago, Deutsche Telekom (DT) Chief Technology Officer Olivier Baujard accidentally spoke truth about T-Mobile to an audience of German investment analysts. After running through the usual company talking points about the effort to sell T-Mobile to AT&T (e.g., it will happen, DoJ is just playing hardball with negotiations, etc.), Baujard said at a public presentation at a Paris broadband conference that: “any rational company had a Plan B and that Deutsche Telekom had other opportunities for its U.S. operations should the U.S. Department of Justice succeed in terminating the deal.”

This is vitally important because, after accidentally shooting the “this is the only way to bring 4G to rural America” argument in the foot by accidentally leaking documents proving AT&T could bring 4G to rural America whenever it wants, and T-Mobile killed the ‘this will create jobs’ argument by confirming that it was preparing pink slips for more than 20,000 employees after the acquisition gets approved, the “T-Mobile is a sickly gazelle” argument is about all AT&T and it supporters have left. Unfortunately for AT&T, this is not the first time Deutsche Telekom has screwed up the “sickly gazelle” storyline by revealing inconvenient truths about its other options. And while there is usually a rule in Washington that “we totally ignore what you say to investors when it contradicts your chosen story,” this deal is sufficiently high profile and has sufficient problems that eventually someone may notice if AT&T’s “Sickly Gazelle Chorus” keeps getting thrown off key by Deutsche Telekom’s “We Have Lots of Other Options Counterpoint.”

Harold offers much more on this job killing merger in his excellent Tales of the Sausage Factory blog.

Coincidentally, the...

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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'...

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Posted September 29, 2011 by christopher

As we previously noted, the city of Longmont, Colorado, is preparing for a referendum to allow the City to offer telecommunications services to local businesses and residents using a fiber ring it built long ago. This is due to a 2005 law (the "Qwest" law) that was pushed through the Colorado Legislature by incumbents seeking to prevent competition.

That law has succeeded -- most Colorado communities can only choose between slow DSL from the incumbent telephone company and comparatively faster services from the incumbent cable company. And when Longmont last attempted to pass a referendum to share its fiber infrastructure with local businesses, Comcast and Qwest swamped the town with unprecedented sums to confuse residents -- leading to the referendum failure with 44% voting yes.

But after the referendum passed and people had time to better understand the issue, many who voted against it realized they had been duped. We have seen the same dynamic elsewhere -- in Windom, MN, for example, where the second referendum succeeded. WindomNet has since saved a number of jobs and is expanding to eight other underserved rural communities around it.

Longmont built its fiber ring in the late 90's but it still has a lot of unused capacity that could be used to attract economic development if the publicly owned power utility were authorized to offer services to businesses. Without this authority, the community has a valuable asset that they are forced to leave unused -- even as local businesses could benefit greatly from it.

The Longmont Times-Call outlined the situation in July:

Without that vote, the city can't let homes or businesses use that fiber without a vote, thanks to a 2005 state law. It's a fight the city's lost once before in 2009, when opponents -- including the Colorado Cable Telecommunications Association -- spent $245,513 to urge the measure's defeat.

This time out, there's a different tack. The city has been underlining in discussions that the measure would "restore its rights" to provide telecommunications service. And it's stressing that no high-dollar project is on the table -- the first words of the ballot measure now read "...

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Posted August 15, 2011 by christopher

Chattanooga, with the nation's most impressive broadband network (stretching into rural areas even outside the metro), is spending $30 million to put a Wi-Fi wireless network on top of it. At present, it is primarily for municipal uses:

For now, city government plans to retain exclusive use of the network for municipal agencies as it tests it with applications including Navy SEAL-esque head-mounted cameras that feed live video to police headquarters, traffic lights that can be automatically adjusted at rush hour, and even water contamination sensors that call home if there’s a problem beneath the surface of the Tennessee River.

Much of the wireless network is being funded by state and federal grants -- Chattanooga is turning itself into a test bed for the future city, at least for communities that recognize the benefits of owning their own infrastructure. Chattanooga can do what it wants to, it does not have to ask permission from Comcast or AT&T.

The goal for the city’s wireless network is to make the entire city more efficient and sustainable, said David Crockett, director of Chattanooga’s Office of Sustainability.

As Bernie Arnason notes at Telecompetitor, Wi-Fi is increasingly needed by smartphones because the big cellular networks cannot handle the load. The future has wireless components, but without Wi-Fi backhauled by fiber-optics, the future will be extremely slow and unreliable -- traffic jams for smartphones.

A more recent story from the Times Free Press notes that Chattanooga is wrestling with how to handle opening the network to residential and business use.

Wireless symbol

“I want to be innovative,” he said. “I want to do more than just turn it on in the parks.”

It’s a popular idea with technologists, tourism officials and the general public, who would gain the ability to surf around the city at speeds greater than typical cellular speeds.

Bob Doak, president and CEO of...

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Posted July 29, 2011 by christopher

I was just reminded of an excellent presentation given by Andrea Casselton back on October 17, 2007, after the Saint Paul Broadband Advisory Committee developed this report. Unfortunately, the city of Saint Paul has not followed through on the fine recommendations of the Committee. As in so many other places, the economic downturn has made public investments more difficult. But not impossible.

Good afternoon, I am Andrea Casselton, the Director of the Office of Technology and Communications for the City of Saint Paul. Thank you for holding this important hearing. On behalf of the City of Saint Paul, I would like to present some thoughts on the role of government in broadband policy.

As part of my role for the City I acted as chair for the Saint Paul Broadband Advisory Committee which met from August 2006 to July 2007. The committee was comprised of 20 representatives from the community, government, a labor union, non-profits, education, and business associations. Some of the representatives on the BAC were also experts in the field of broadband and wireless technology.

Several weeks ago the Committee’s recommendations report was published. My comments borrow heavily from that report.

In my opinion, in order to decide whether there is a role for local and state government in the deployment of broadband in the state of Minnesota, we must first decide if we consider broadband to be infrastructure.

The American Heritage Dictionary defines infrastructure as: “The basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post offices, and prisons.”

For cities, towns and counties to successfully compete in the global economy they must be connected to the world. From harbors to railroads, from highways to airports, infrastructure has historically enabled the exchange of commerce, information, and people. Whether it is a rural town or a major metropolitan city, to remain economically competitive in the 21st century, they must be connected to a new infrastructure – affordable, high-capacity broadband telecommunications.

Broadband, viewed ever increasingly as a utility, provides this new connection to employment, educational opportunities, accessible healthcare, public...

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Posted July 28, 2011 by christopher

Public Knowledge recently had me as a guest on their "In the Know" weekly podcast. Our interview is the last half of the show. The videos we reference in the discussion are embedded below.

Posted July 18, 2011 by christopher

We watch in frustration as the federal government, dressed as Charlie Brown asks AT&T, wearing Lucy's blue dress and smiling brightly, if she really will hold the football properly this time. "Oh yes, Charlie, this time I really will create all those jobs if you let us buy T-Mobile," says AT&T Lucy.

Over at HuffPo, Art Brodsky recently revisited AT&T's promises in California to create jobs, lower broadband prices, and heal the infirm if the state would just deregulate the cable video market -- which it did, 4 years ago. California upheld its end of the bargain -- wanna guess if AT&T did? Hint: Charlie Brown ended up on his back then too.

The answer comes from James Weitkamp (via Art's HuffPo post), from the Communications Workers of America, a union that all too often acts in the interests of big companies like AT&T and CenturyLink rather than workers:

"AT&T and Verizon have slashed the frontline workforce, and there simply are not enough technicians available to restore service in a timely manner, nor enough customer service representatives to take customers' calls. Let me share some statistics. Since 2004, AT&T reduced its California landline frontline workforce by 40%, from about 29,900 workers to fewer than 18,000 today. The company will tell you that they need fewer wireline employees because customers have cut the cord going wireless or switched to another provider, but over this same period, AT&T access line loss has been just under nine percent nationally. I would be shocked if line loss in California corresponds to the 40 percent reduction in frontline employees.


"Similarly, since 2006 Verizon California cut its frontline landline workforce by one-third, from more than 7,000 in 2005 to about 4,700 today. I venture that Verizon has not lost one third of its land lines in the state."

Note that AT&T, Verizon, and other massive incumbents like Comcast have been wildly profitable over this term.

The same trend holds in cellular wireless - as noted by the Wall Street Journal:

The U.S. wireless industry is booming as more consumers and businesses snap up smartphones, tablet computers and billions of wireless applications. But for...

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Posted July 12, 2011 by christopher

You can also read this story over at the Huffington Post.

How can it be that the big companies who deliver some of the most important services in our modern lives (access to the Internet, television) rank at the top of the most hated? Probably because when they screw up or increase prices year after year, we have no choice but sticking with them. Most of us have no better options.

But why do we have so few choices? Government-sanctioned monopolies have been outlawed since the 1996 Telecommunications Act. Unfortunately, the natural tendency of the telecommunications industry is toward consolidation and monopoly (or duopoly). In the face of this reality, the federal government has done little to protect citizens and small businesses from telecom market failings.

But local governments have stepped up and built incredible next-generation networks that are accountable to the community. These communities have faster speeds (at lower prices) than the vast majority of us.

Most of these communities would absolutely prefer for the private sector to build the necessary networks and offer real competition, but the economics of telecom makes that as likely as donuts becoming part of a healthy breakfast. In most cases, the incumbent cable and telephone companies are too entrenched for any other company to overbuild them. But communities do not have the same pressures to make a short-term profit. They can take many years to break even on an investment that creates many indirect benefits along the way.

One might expect successful companies like AT&T and Time Warner Cable to step up to the challenge posed by community networks, and they have. Not by simply investing more and competing for customers, but by using their comparative advantage – lobbying state legislatures to outlaw the competition. As we noted in our commentary and video last week, massive cable and telephone companies have tried to remove...

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Posted July 10, 2011 by christopher

Rick Karr has produced a "can't miss" 15 minute video that shows what happens when telecommunications is treated more like infrastructure and less like a for-profit morass controlled by massive companies.  

We can have universal, fast, affordable, and reliable access to the Internet but we choose instead to let companies like AT&T and Comcast dominate telecommunications to the detriment of our economy, innovation, education, and health care.  It is a choice -- and one we desperately need to revisit.

This video is no longer available.

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