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competition
Content tagged with "competition"
Charter Fights Dirty to Kill Competition in Monticello
Florida Pro Corporate Group Argues for Less Broadband Competition
The Coalition for the New Economy — which works to ensure “that investments in broadband networks are used efficiently and effectively”— wrote Tuesday that “funding for government-owned broadband networks is very often duplicative,” and “diverts local funds from public safety and education. ... Christopher Mitchell of Community Broadband Networks tells the Independent that official U.S. government policy believes “we can have proper competition if every competitor builds their own network, and that is not at all supported by reality.”This group is emphatically supporting less competition because the private sector does not want to overbuild other private networks. If the public is not allowed to build next-generation networks where private companies already operate last-generation networks, communities will have neither modern connections nor real choices. The cable and DSL companies are arguing that no one should be allowed to build public interstates where private dirt roads exist. We live in a democracy. We are supposed to be free to choose the best policies in promoting infrastructure. We can choose a future where we are more dependent on a few absentee massive corporations or one in which we have more control over our future. We can pursue policies that would result in real choices among broadband service providers or we can continue the status quo, where choices dwindle. Below, I have included an excellent debate from last year in which the above points are fleshed out over 2 hours.
Public Ownership of Networks Can Solve Broadband Policy Fights
We are running a guest commentary today. Eric Null is a third-year law student at Cardozo Law School in New York City. He is passionate about corporate and intellectual property law, as well as technology and telecommunications policy. Follow him @ericnull or check out his papers. While researching a paper about municipal broadband networks, I was struck by the tremendous benefits that municipal networks can provide. It can be the first high-speed Internet link for an area without broadband, or it can provide some much-needed competition in areas that currently have access to broadband, but for some reason that existing access is unsatisfactory (e.g. price, service). Municipalities, in theory, can run the network for the benefit of the public rather than with a vicious profit maximization motive. Indeed, municipal networks bring many benefits. But first, a little history. In the United States, cable providers have set up regional monopolies for themselves, and “competitors” such as DSL and satellite are characterized by slower connection speeds and it is arguable that they are actual substitutes to cable access. Certainly within the cable industry, any “competitive” cable company attempting to compete with incumbents is met with high costs of building new infrastructure and lack of customer base. Municipalities can pick up where smaller, private entities cannot succeed. Municipalities have had a long history of investing in critical infrastructure, and they have the mentality for long-term planning that private companies simply cannot enjoy. A large company like Verizon likely has to justify any expansion of its network to its investors and ensure them that the venture will return a profit relatively quickly. Not so with municipalities; a city network allows its citizens to benefit indirectly (and directly) over the long-term. Thus, city governments can be a formidable competitor in the telecom and cable industries. Some states, regrettably, have banned or restricted the practice. In Nixon v.
Honesty From Heartland: Munis Outgunned in Competition with Private Sector
- Muni networks are doomed to failure because of the general incompetence of government
- Muni networks will drive private sector providers out of the market because governments are too all powerful and have too many advantages in competition
A municipal government cannot possibly hope to compete with well-capitalized broadband providers in a highly competitive market.For those unfamiliar with Heartland, they don't use the same definitions for common words like "competitive" as the rest of us do. In Heartland's world, "competitive" means a market in which one of our funders operates regardless of how much competition exists in it. So why do we need new legislation to make it even harder for communities to build the networks that the cable and DSL companies won't build?
Bloomberg: The Case for Publicly Owned Internet Service
Today, the Institute for Local Self-Reliance, which advocates for community broadband initiatives, is tracking more than 60 municipal governments that have built or are building successful fiber networks, just as they created electric systems during the 20th century. In Chattanooga, Tennessee, for example, the city’s publicly owned electric company provides fast, affordable and reliable fiber Internet access. Some businesses based in Knoxville -- 100 miles to the northeast -- are adding jobs in Chattanooga, where connectivity can cost an eighth as much.Though I encourage readers to read the full column, I love the conclusion:
Right now, state legislatures -- where the incumbents wield great power -- are keeping towns and cities in the U.S. from making their own choices about their communications networks. Meanwhile, municipalities, cooperatives and small independent companies are practically the only entities building globally competitive networks these days. Both AT&T and Verizon have ceased the expansion of next-generation fiber installations across the U.S., and the cable companies’ services greatly favor downloads over uploads. Congress needs to intervene. One way it could help is by preempting state laws that erect barriers to the ability of local jurisdictions to provide communications services to their citizens. Running for president in 1932, Franklin D. Roosevelt emphasized the right of communities to provide their own electricity. “I might call the right of the people to own and operate their own utility a birch rod in the cupboard,” he said, “to be taken out and used only when the child gets beyond the point where more scolding does any good.” It’s time to take out that birch rod.
South Carolina Cable Association Also Wants to Limit Competition
The SCCTA has been actively following the AT&T-backed legislation that would amend the Government-Owned Telecommunications Service Providers Act. House Bill 3508 would impose the same requirements on government-owned broadband operations that are currently imposed on telecommunications operations.Of course, H.3508 goes far beyond applying the "same requirements." It enacts a host of requirements that only apply to public providers, which are already disadvantaged by being much smaller than companies like Time Warner Cable and AT&T. We have long ago debunked the myth of public sector advantages over the private sector. The second quarter newsletter [pdf] identifies this bill as the highest priority of the cable association:
H3508, the AT&T backed legislation, has been our dominate piece of legislation in 2011.
USA Today Covers Lafayette Community Fiber Success
The battle over broadband in Lafayette is part of a growing number of clashes across the USA that pit municipalities against telecom firms for the right to deliver Web access to homes and businesses. More than 150 local governments across the country have built or are planning to build cyber networks, says Christopher Mitchell of the Washington-based Institute for Local Self-Reliance, a non-profit group that advocates community development and local access to technology. Mitchell says those efforts often draw opposition in the form of misinformation campaigns, lawsuits from private providers or unfavorable state laws resulting from telecom lobbying. Nineteen states either ban cities and counties from getting into the broadband business — or make it difficult.Minor quibble: the Institute for Local Self-Reliance (and particularly my work) is not Washington-based. Like the toy in Crackerjack boxes, we cannot have a story about community networks without at least one blatant lie from some cable company employee. No disappointments here:
"Our initial objection was, and remains, that it is an unfair advantage for your competitor to also be your regulator," says Todd Smith, a Cox spokesman. "Many states prohibit government from competing with the private sector."I challenge Todd Smith to name one way in which LUS Fiber regulates Cox. When the local government makes rules that impact either Cox or LUS Fiber, such rules have to be non-disciminatory or they violate state and federal laws. If incumbents think the community is violating any laws, we know that they know how to hire lawyers and file lawsuits.
Smart Conduit Considerations for Forward-Looking Communities
We Told You So: Subscribers Abandon DSL
Media Coverage Roundup: Georgia AT&T Bill to Kill Community Broadband
Rogers’ legislation is exceptionally friendly to the state’s incumbent phone and cable companies, and they have returned the favor with a sudden interest in financing Rogers’ 2012 re-election bid. In the last quarter alone, Georgia’s largest cable and phone companies have sent some big thank-you checks to the senator’s campaign:Phil also refutes the supposed failures cited by those pushing the bill. Not only do such stories misrepresent what really happened, some actually cite EPB's incredible 1Gbps service as demonstrating that munis are out of touch. What else would you expect from the Heartland Institute, which made its name fighting against the radical claim that cigarettes are linked to cancer? Government Technology's Brian Heaton also covered the story in "Georgia Community Broaband in Legislative Crosshairs."A review of the senator’s earlier campaign contributions showed no interest among large telecommunications companies operating in Georgia. That all changed, however, when the senator announced he was getting into the community broadband over-regulation business.
- Cable Television Association of Georgia ($500)
- Verizon ($500)
- Charter Communications ($500)
- Comcast ($1,000)
- AT&T ($1,500)
In addition, Mitchell [me] said that SB 313’s requirement of the public entity paying the same taxes or the same cost of capital as the private sector is another red herring.