Tag: "corruption"

Posted April 15, 2015 by lgonzalez

Last week, the New York Times reported that the “outpouring of thoughtful and positive comments” Comcast has received for their Time Warner Cable proposed merger is much more than it’s cracked up to be. We are shocked, shocked, to learn that organizations receiving a lot of Comcast charity are endorsing its merger plans.

After a hasty staff meeting, we decided that for a mere $250,000 we too, could see the benefits of this monopolistic mega-merger. We know they ghostwrite many of their most favorable letters, but we want to save them the trouble, by providing our own glowing endorsement. 

Dear Chairman Wheeler,

After careful consideration,  we wish to share our strong support for the Comcast/Time Warner Cable merger. Firstly, we want to make absolutely clear that our endorsement of this union has absolutely nothing to do with $250,000 generously donated to our organization, no strings attached, by Comcast. After years critiquing  their slack customer service, their perennially rising prices, and their lobbying to prevent real competition, we now think a merger between the two most hated companies in America is a way awesome idea!

We support the company’s efforts to announce gigabit speeds while charging high enough prices to ensure no one calls their bluff. We hope that the merger doesn’t distract Comcast from its efforts in Philadelphia to never pay municipal property taxes or to ensure low wage workers have no sick days in the City of Brotherly Love. 

We feel certain that this merger won't upset our swell market for cable services and that consumers will have the same level of...

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Posted February 10, 2015 by lgonzalez

It is common knowledge that Comcast and a number of political leaders enjoy special relationships. Nevertheless, it was still a bit shocking to see the level at which Comcast's army has infiltrated the political process as uncovered in a recent Verge article.

Comcast, Time Warner Cable, AT&T, and CenturyLink lawyers and lobbyists often write legislation for lawmakers to introduce. This past summer, the puppetry went one step further when Comcast crafted letters supporting the Comcast/Time Warner Cable merger. Those letters were then submitted to the FCC from the offices of a number of politicians known to receive support from the cable giant. We applaud both Comcast and their pet lawmakers for their efficiency!

The Verge was also able to obtain email threads that document how lobbyists drafted letters of support and sent them on to local elected officials, who then made insignificant changes in the signature line or transferred the exact language on to official stationery before sending it on to the FCC.

We have taken the liberty of presenting some of the letters below. You can see a few email exchanges that detail the conversation between Comcast lobbyists and political staff.

The Verge spoke with Michal Copps, former FCC Chairman, who now advises at Common Cause:

"When a mayor of a town or a town councilman or a legislator writes in — we look at that, and if someone is of a mind already to approve something like this they might say: ‘ah-ha, see!’" says Copps, who is now an advisor at Common Cause and opposes the merger. "These letters can be consequential, there’s no question about that."

The comment process has been tainted because Comcast has also used gentle nudging to obtain support from organizations benefitting from its charitable foundation. Columbia Professor Tim Wu has studied the potential merger:

"I think they have failed to meet their burden of persuasion that this will make life better for the average American consumer…What does the average American consumer care about? They care about prices being too high. Comcast could have said this merger will lower prices and committed itself to lower prices but it has made no sign that it will do this." 

Wu, who reviewed the documents obtained by The Verge, said that the new information "...

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Posted September 24, 2013 by christopher

For my money, the best headline of last week was "The U.S.'s crap infrastructure threatens the cloud." The rant goes on to explain just how crummy our access to the Internet is.

As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Some of those monopolies are even drafting "model legislation" to protect themselves from both community broadband and commercial competition.

He nails a number of important points, including the absurdity of allowing de facto monopolies to write the legislation that governs them. However, Andew Oliver's article is a bit muddled on the issue of "monopoly." I have argued with several people that the term "monopoly" has historically meant firms with large market power, not the more stringent definition of "the only seller" of a good. It is not clear how Oliver is using the term.

Because of this confusion, you can come away from his piece with the firm idea that it is primarily government's fault we have a duopoly of crap DSL and less crappy cable. He repeatedly says "state-sponsored monopolies." However, no local or state government may offer exclusive franchises for cable or telecom services and the federal government hasn't officially backed monopolies for decades.

This is a key point that many still fail to understand - a majority seem to believe that local governments bless monopolies when local governments actually are desperate for more choices. This is why they fall all over themselves to beg Google to invest in their community or they build they own networks (over 400 communities have wired telecom networks that offer services to some local businesses and/or residents).

Poor laws and regulations have helped the massive cable and telephone companies to maintain their status - that is why they spend so much on lobbying and political contributions at all levels of government. They want to and have successfully corrupted the process, neutralizing the power of government to protect consumer interests and prevent a few firms from dominating the market.

...

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Posted May 31, 2013 by lgonzalez

Veteran North Carolina legislator Rober Brawley resigned as Chairman of the state Finance Committee, reports local WRAL. According to WRAL's @NCCapitol blog, the Republican from Iredall read his resignation letter during a recent floor debate. He criticized Speaker of the House Thom Tillis, questioning Tillis' ethics and accusing him of special legislative favors specifically for Time Warner Cable.

One bone of contention was a bill introduced by Brawley to expand the service area for the municipal cable network MI-Connection in Mooresville. From the letter as quoted in the article:

"You slamming my office door shut, standing in front of me and stating that you have a business relationship with Time Warner," Brawley wrote. "MI Connections is being operated just as any other free enterprise system and should be allowed to do so without the restrictions placed on them by the proponents of Time Warner."

Stop the Cap covered the background of that bill in its article about this accusation:

House Bill 557, introduced by Brawley, would have permitted an exception under state law for the community-owned MI Connection cable system to expand its area of service to include economic development sites, public safety facilities, governmental facilities, and schools and colleges located in and near the city of Statesville. It would also allow the provider to extend service based on the approval of the Board of County Commissioners and, with respect to schools, the Iredell County School Board.

In 2010 - 2011, Tillis received $37,000 from the telecommunications industry including a $1,000 contribution each from AT&T, Time Warner Cable, and Verizon. At the time of the contribution, Tillis had already won an election in which he ran unopposed and session was just about to start. He is a darling of ALEC, the American Legislative...

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Posted April 2, 2013 by lgonzalez

Municipal broadband networks have been gaining traction across the country. It's easy to see why: In many rural and low-income communities, privately offered broadband services are nonexistent. In its 2012 Broadband Progress Report the Federal Communications Commission counted nearly 20 million Americans (the vast majority living in rural areas) beyond the reach of broadband.

The Free Press' Timothy Karr's words are supported by the growing number of pins on our Community Network Map. We connect with places nearly every day where municipal networks fill the cavernous gaps left by the massive corporations. Large cable and telecom providers do not hide their aversion to servicing rural areas, yet year after year their lobbying dollars persuade state politicians to introduce bills to stop the development of municipal networks. Karr reviewed recent efforts to use state laws to stifle community owned networks in a Huffington Post article.

As readers will recall, this year's front lines were in Atlanta, where HB 282 failed. We hope that loss may indicate a turning point in advancing municipal network barriers because the bill lost on a 94-70 vote with bipartisan opposition. If it had succeeded, Georgia would have been number 20 on a list of states that, thanks to ALEC and big corporate sponsors like AT&T, Comcast, Verizon, and Time Warner Cable, have decided to leave their citizenry begging for the private market to come their way.

Time and again, the supporting argument goes like this:

"A vote 'yes' for this bill means that you support free markets and free enterprise," [Rep Hamilton, the Chief Author of HB 282] said [on the House Floor].

A 'no' vote means that you want more federal dollars to prop up cities, Hamilton said.

But Karr points out that some policy makers are starting to question that argument, with good reason. From his article:

"They talk about [the companies] as if they are totally free market and free enterprise, but doesn't AT&T get some tax breaks?" [Rep. Debbie Buckner...

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Posted August 7, 2012 by christopher

We have watched in growing horror as AT&T and other telco lobbyists have gone from state to state gutting telecommunications oversight. In several states, you no longer have an absolute right to a telephone - the companies can refuse to serve you if they so choose.

We tip our hat to Phil Dampier at Stop the Cap, who alerted us to this story. AT&T convinced Mississippi legislators to remove consumer protections for telecommunications.

Northern District Mississippi Public Service Commissioner Brandon Presley is unhappy with a new state law that will strip oversight over AT&T. Presley plans to personally file suit in Hinds County Circuit Court against the law, calling it unconstitutional.

“It violates the state constitution,” Presley said of the bill during an interview with the Daily Journal. “There’s no doubt AT&T is the biggest in the state, and this bill will allow them to raise rates without any oversight at all.”

House Bill 825 strips away rate regulation of Mississippi landline service and removes the oversight powers the PSC formerly had to request financial data and statistics dealing with service outages and consumer complaints. The law also permits AT&T to abandon rural Mississippi landline customers at will.

As we've seen elsewhere (as in California), AT&T worked with ALEC to push this through - though Rep Beckett (R-Bruce) doesn't think AT&T will raise its rates or abandon parts of the state. Time will tell - but Beckett won't be the one to suffer when the inevitable occurs. Thanks to AT&T and ALEC, he already got his.

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