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Comcast's Deep Pockets Fund False Claims in Longmont Referendum
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.
So who exactly is "Look Before We Leap?" They cannot point to any real local support in the community.
So who exactly is "Look Before We Leap?" They cannot point to any real local support in the community.Astroturf Org in Longmont Accuses City of Distributing Propaganda
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.
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.
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!
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: Beware the Robo-Calls From Mega-Corporations
Vince Jordan, an advocate for broadband competition in Longmont, Colorado, wrote the following op-ed for the local paper about the upcoming referendum 2A. He has given us permission to reprint it here.
“There you go again” (to quote President Ronald Regan).
Well, it has already started. The folks who spent almost a quarter of a million dollars in the elections two years ago to convince the citizens of Longmont that being able to take further advantage of the fiber network they already own and are using is too dangerous for them, are at it again. No doubt by now, many of you have received one if not multiple “robo-calls” trying to convince you that the City is going to raise your taxes as a result of a yes vote on 2A. The first three words of Ballot Issue 2A say, “Without raising taxes”, but, since the opponents of this ballot, (those being the two mega-corporations who stand to benefit from you voting against 2A), can’t come up with any good reasons against the measure, they are resorting to the tired old cry of “they are going to raise your taxes!”
Citizens of Longmont, from 1997 to 2005, we had the right to use the asset that the city owns, namely the fiber network, to the benefit of ALL of the businesses and citizens of Longmont. The same corporations that are trying to “buy” your vote again, as they successfully did in 2009 with their “No Blank Check” campaign, in 2005 were able to lobby for and buy a law that took away our right to fully utilize this city owned asset. What ballot issue 2A is asking is for the citizens of Longmont to take back a right they once had.
This fiber network, which is fully operational today and used by the city for city purposes, and in fact already benefits the citizens of Longmont to some degree by keeping city service communications cost low, can do so much more. Our fiber network can be used to enhance the three Es, Employment, Education and Entertainment, here in Longmont. Low cost communications is as much a necessity today as is low cost power and water. Longmont already benefits from the lowest power rates in the country and the best service. Why wouldn’t we want the same advantage in the communications network that serves our businesses, our schools and our homes?
Longmont Fiber Ring Referendum
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 Referendum Take Two: It Starts With a Debate
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.
Longmont Considers Second Vote on Community Fiber Network
Colorado requires a referendum before a local government can build a broadband network as a result of a 2005 law pushed by Qwest to prevent communities from building next-generation networks. So when Longmont wanted to expand its fiber ring to offer residential and business services, they put it to a vote.
They lost with only 44% supporting the measure. But now, more people understand the issue and the community is considering voting again.
We saw the same dynamic in Windom, Minnesota. Almost ten years ago, Windom held a vote to build a muni FTTH network and it failed to gain the Minnesota-required 65% supermajority. After the vote, a number of people wanted to revote because they realized they had been conned by the incumbent phone provider (ahem… Qwest) and only truly understood the issue after the vote had occurred.
City officials wanted no part of another referendum but community champions eventually prevailed and they had a second vote that authorized the community to build the network.
We'll see if Longmont follows suit. An article discussing the re-vote notes that Comcast and Qwest have dumped unprecedented sums into preventing the community from having a new choice:
The first attempt at getting that approval didn't go so well in 2009. According to city records, opponents -- including the Colorado Cable Telecommunications Association -- spent $245,513 to defeat that ballot measure, the largest amount ever spent on a Longmont city election. By contrast, the city legally couldn't campaign on its own behalf, and the explanations that were out there didn't explain well, according to Longmont Power & Communications director Tom Roiniotis.The cable and phone companies created an astroturf group called "No Blank Check" that then used standard fear, uncertainty, and doubt tactics to spread misinformation around the community.
The Fundamentally Unlevel Playing Field in Referendums
A recent article from GovPro.com, "Cities make end run around data network obstructions," has a good discussion of why referendums are not a good way of ascertaining community support for a community network:
A 2005 Colorado law bans municipalities from providing any type of advanced telecommunications services unless more than 50 percent of the voters favor the plan. Longmont's ballot question asked voters to allow the city to provide services either directly or in partnership with a private company, but 57 percent of voters said no. "Comcast decided it didn't want Longmont to go there," says Tom Roiniotis, director of Longmont Power & Communications, the city's community-owned electric utility. Comcast spent about $200,000, the largest contribution to any campaign in Longmont's history, to defeat the measure, Roiniotis says. Meanwhile, once the issue became a ballot initiative, Longmont was not allowed to spend any money to campaign for the ballot initiative because that would violate campaign financing laws. "We were walking with one arm and one leg tied behind our back when it came to this campaign," Roiniotis says.
More History on Longmont Fiber Ring in Colorado
The Longmont Times-Call continues its coverage of the community network struggles of a Colorado community. This story has a lot of the history behind how Longmont developed a fiber ring and how they have used it even as they are prohibited from expanding it.
Longmont is not alone in working for upwards of a decade to bring better broadband to the community that actually meets local needs rather than maximizing profits. Other communities have also spent ten, fifteen, or even long with on-gain, off-again plans to build a publicly owned network. This reality provides a handy refutation of state preemptions based on the logic that communities will act too quickly in not considering their plan for a network. Communities take years in researching, planning, and developing networks.
In Longmont, the first public fiber investment came in 1996 and was expanded shortly thereafter by the Platte River Power Authority. The city moved more than 40 facilities to a gigabit network, leaving T1s to communities that prefer to vastly overpay for their telecommunications needs.
They worked with a private company, Adesta, to expand the network to residents and businesses but the company filed for bankruptcy in the following year. The arrangement certainly had its upside though - Qwest and Comcast mysteriously decided to start offering broadband in Longmont shortly after the Adesta agreement. This happens almost every time a community invests in infrastructure -- it leads to increased investment from incumbents.
They quote a techie from the Longmont Hospital who explains the one of the benefits of the publicly owned fiber already in the ground:
“It’s at least a three times reduction in cost,” Niemann said of leasing fiber from the city, versus contracting with a commercial provider. “And oftentimes, if you go with a commercial provider, you have construction costs.”The city would like to expand the network, both to bring competition to the DSL/cable duopoly, and to invest in smart grid applications for its public power utility. Unfortunately, they have to win a referendum per Colorado's incumbent-protection law. The incumbents are more than willing to spend hundreds of thousands against any such measure, knowing they would lose far more in profits if they had to deal with competition in the community.
Longmont's Saga - The Failure of Referendum
As we have noted previously, Longmont, Colorado, has seen a number of private companies attempt to offer Wi-Fi broadband and then go out of business. As Colorado preempts local authority by requiring a referendum by the city before it can offer services itself, Longmont recently had a vote to authorize telecommunications services. Voters defeated the option.
As is common in these referendums, voters were blanketed with reasons to vote against it as incumbents (Qwest and Comcast) spent $200,000 opposing competition whereas the city is prevented by law from advocating for a ballot measure.
Now the Wi-Fi network will be auctioned off in pieces because it cannot pay taxes.
Ohio-based DHB Networks owes the Boulder County treasurer’s office $87,000 in unpaid business personal property tax, and the county demanded the company cease operations unless it pays those taxes. DHB also owes the city of Longmont. Longmont-based RidgeviewTel is running the network, at least until the Wi-Fi equipment is auctioned off Thursday — at which point, 400 to 600 customers will be without Internet access, RidgeviewTel CEO Vince Jordan said.Though the city already has fiber assets that could be used for backhaul as well as other expertise it could use in continuing to run the network, it cannot step in to run a network that would be useful to the community:
While the city can step in and operate the system, it would be only for municipal needs — such as police, fire and utility services — and not to provide Wi-Fi to customers. “Our hands were always tied,” Roiniotis said. “We could buy the system and operate it, but only for our own purposes. We can’t provide the retail part of it.” The city’s hands also were tied when it came to campaigning. State law bans governments from spending public money to campaign for or against local ballot questions.Though 400-600 people may not seem like a lot of people to leave stranded, many of those on the network were the ones that needed a low cost alternative. This is one of the reason some hoped for a last minute resolution to the impending auction.
Results of Tuesday's Elections
A few local elections on Tuesday had questions relating to publicly owned broadband networks. In Seattle, candidate McGinn strongly supported a publicly owned fiber optic network for the city and he may yet get his way as the race is a dead heat and ballots are still being counted. We previously discussed Seattle's broadband deliberations.
In Longmont, Colorado, voters voted against giving the municipality authority to expand the city owned fiber-assets into a network offering retail services. As usual, the proponents of the public network were significantly outspent by incumbents seeking to prevent competition.
A group called No Blank Check Longmont, backed with $150,000 from the Colorado Cable Telecommunications Association, spent more than $143,000 in cash and benefited from more than $46,000 in in-kind contributions in its campaign to defeat 2C.Up on top of Minnesota's North Shore, the Cook County Broadband project got a mixed reception. Though they received the authority to raise a 1% sales tax that would have helped pay for the project, they failed to achieve the necessary 65% super majority required under ancient Minnesota law (1915) to operate a telephone service. A majority supported the idea - 56% - but without the ability to offer a triple-play, the county will have to reconsider its approach. Though such results are disappointing, every community with a locally owned community network has had to deal with such setbacks. The question is how organizers can respond to challengers and how badly the community wants fast and affordable broadband networks. In the near term, I hope that both the Minnesota Broadband Task Force Report (due Friday) and the FCC National Broadband Plan recommend abolishing such barriers to public ownership as a 65% referendum.