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AT&T Fights Broadband Stimulus by Proxy

Phillip Dampier at Stop the Cap! has once again followed the money trail to reveal AT&T pulling puppet strings to attack broadband stimulus funds. More significantly, AT&T is trying to de-legitimize the provision of access to the Internet by any aside from the few big DSL and cable companies that have essentially cornered the market.

AT&T funds groups like Navigant that create misleading research and reports that they then use to confuse the media to spread messages that benefit AT&T.

Navigant spent much of 2011 trying to convince regulators and the public that T-Mobile actually doesn’t compete with AT&T, so there should be no problem letting the two companies merge. Readers win no prizes guessing who paid for that stunner of a conclusion. Thankfully, the Department of Justice quickly dismissed that notion as a whole lot of hooey.

Navigant’s second ludicrous conclusion is that there is no rural broadband availability problem. Navigant has a love affair with slow speed, spotty DSL (sold by AT&T) and heavily-capped 3G wireless (also sold by AT&T) as the Frankincense and Myrrh of rural Internet life. With those, you don’t need any broadband expansion (particularly from a third party interloper).

Thanks to Phil for taking the time to reveal these strategies.

The Real Government Takeover of the Internet

If you aren't familiar with SOPA - the "Stop Online Piracy Act" or its companion in the Senate (called PIPA or Protect IP), you should be. This is legislation that would allow the US government to require Internet Service Providers block web sites without due process. Sascha Meinrath and James Losey from the New America Foundation explain the threat in Slate:

The interconnected nature of the Internet fostered the growth of online communities such as Tumblr, Twitter, and Facebook. These sites host our humdrum daily interactions and serve as a public soapbox for our political voice. Both the PROTECT IP Act and SOPA would create a national firewall by censoring the domain names of websites accused of hosting infringing copyrighted materials. This legislation would enable law enforcement to take down the entire tumblr.com domain due to something posted on a single blog. Yes, an entire, largely innocent online community could be punished for the actions of a tiny minority.

If you think this scenario is unlikely, consider what happened to Mooo.com earlier this year. Back in February, the Department of Justice and Department of Homeland Security seized 10 domains during a child-porn crackdown called “Operation Protect Our Children.” Along with this group of offenders, 84,000 more entirely innocent sites were tagged with the following accusatory splash page: “Advertisement, distribution, transportation, receipt, and possession of child pornography constitute federal crimes that carry penalties for first time offenders of up to 30 years in federal prison, a $250,000 fine, forfeiture and restitution." Their only crime was guilt by association: They were all using the Mooo.com domain.

From our point of view, what is most interesting is not who is pushing this bill (Hollywood and the usual suspects that tried to kill the VCR because it would obviously destroy the movie industry) but who is not resisting. After all, whenever the issue of network neutrality comes up, the big telecom companies pay a bunch of organizations like Americans for Prosperity to create astroturf movements to oppose a "government takeover of the Internet." Of course, network neutrality is the opposite - a set of rules where the government requires corporations not dictate how subscribers use the Internet.

But here we have a literal government takeover of the Internet. Should SOPA pass, the federal government would decide what sites are allowed to be accessed by Americans and which cannot. The evidence thus far suggests that more sites will be harmed by incompetence as opposed to intentional political censorship but the entire approach is troubling, to say the least.

To get a sense of which elected officials are supporting this legislation, here are the cosponsors for HR 3261 in the House and cosposors for S 968 in the Senate. More details on how you can be involved at Demand Progress.

Many of the organizations who have strongly fought for an open Internet with strong network neutrality rules are pouring resources into stopping SOPA. This includes Free Press's Save the Internet, Public Knowledge, and others. Some of the network neutrality opponents, like the Wall Street Journal and Cato Institute have also warned against SOPA but other groups -- like Americans for Prosperity have been fairly silent. The next time AT&T and Time Warner Cable-sponsored groups start fear-mongering around policies that threaten to bring competition against their corporate sponsors, we must ask them where they were when the future of the Internet was truly threatened.

The Future of Music organization has reviewed an alternative to SOPA that may be a much better approach.

Below is a video about SOPA.

Image credit: monkeyc on Flickr.

Video: 

Longmont Astroturf Opposition Gone in Puff of Smoke

Any hint that the Comcast-funded effort in Longmont to oppose authorizing the City to provide broadband services was anything but an astroturf campaign of lies has evaporated in the wake of its overwhelming defeat.

If there had been a shred of local legitimacy among the "Look Before We Leap" group that was run by Denver-based strategists, it probably would have kept its website up for longer than a few days after the election. If I were them, I would want to keep a record for the future.

But they don't. Because they were just a bunch of paid public relations people working a job. They didn't oppose Longmont's initiative, they didn't know anything about it. They were collecting a paycheck. And this is what they left behind:

Look Before We Leap, disappeared

The Times-Call has a hopeful reflection about the broadband battle (somewhat classier than the hilarious Neener Neener Neener poke at Comcast).

This time, lobbyists for the telecommunications industry spent even more than they did last time -- about $300,000 -- in trying to convince residents that the city having control over its own property was somehow "risky." Obviously, the lobbyists, including the euphemistically monikered Americans for Prosperity, were only concerned about the welfare of Longmont residents and the health of the local economy. They spent so much money to show just how concerned they were.

But the majority of the voters weren't buying what they were selling. People had the audacity to think for themselves and make up their own minds.

Personally, I would thank the anti-2A folks for pouring so much money into the local economy, except most of its spending was elsewhere. They did pop for a few ads in this newspaper, though, so for that they have my gratitude.

The author, Tony Kindelspire, goes on to note just how amazing it was to see everyone unified on an issue.

seal-longmont-co.jpg

Many people who you would typically expect to find defending corporate rights above all else, and criticizing the inefficiency of government, were quite vocal in support of 2A.

As they should have been. Ask a local businessperson how Longmont having its own electric utility is working out for them. We have some of the cheapest rates in the country.

It takes leadership to stand up against big business lobbyists to act on behalf of what you think is right, not what's going to raise you the most amount of campaign cash the next time around. How very, very refreshing it was to see, and I hope it's a lesson that spreads far and wide.

I hate quoting so liberally from an article, but I want to make sure these important words are remembered. I hope the City takes seriously its responsibility to continue involving the public in important decisions about the digital future as it moves forward with the freedom to invest in infrastructure that every community should have regardless of how much money incumbent lobbyists pour into legislatures around the nation.

And I cannot help but remind my readers that this referendum would have failed by Minnesota standards, which requires a 65% supermajority. That is an incredibly tough ask when a major player like Comcast can get 40% of the population to vote for its position by spending a mere $300,000 while having zero support in the community.

Longmont Chooses Local Self-Reliance

What a difference two years and a strong grassroots campaign makes. Two years ago, Comcast's ability to spend $245,000 on a campaign of lies was the determining factor over Longmont's decision about using publicly owned infrastructure to expand broadband competition.

Yesterday, despite Comcast spending even more by again funneling hundreds of thousands through the Colorado Cable Telecommunications Commission, voters overwhelmingly supported question 2A - reinstating local government authority to offer telecommunications services using its infrastructure.

Full congratulations must go to the Longmont citizens who organized a truly grassroots campaign that sent people out on the streets with signs, organized informational events, disseminated press releases, maintained an information web page (and Facebook page), wrote letters to the editor, commented on online news stories, and otherwise educated their peers about the opportunity 2A offered. Craig Settles is also celebrating with a post describing the victory.

Once again, the question was:

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?

Question 2A results

The results were 60.8% Yes, 39.2% No. 13,238 voted yes whereas 8,529 voted against.

The Times-Call has already posted a story about the results, including some curious points from the pro-Comcast group's spokesman (and Denver resident) George Merritt.

"While we remain concerned about the disappointing track record of municipal telecoms, we hope our city has learned from the mistakes made by other cities and that taxpayers are protected with whatever venture develops as a result of the passage of Question 2A," Merritt said.

Despite spending probably over $300,000 (we won't know for a few days), Comcast and allies couldn't even find a Longmont resident to be their spokesperson!!

Practically no one in Longmont supported Comcast's position, as we noted yesterday - everyone campaigning for office supported reinstating local authority to provide broadband services. The newspapers supported the effort. In debates, the only people willing to defend Comcast's position were from out of town.

For just about everyone, this was a no-brainer: The City should be free to use assets it built long ago to expand economic development and broadband access. And yet, Comcast's $300,000 still got 39% to support letting City assets go unused while local businesses and residents are overpaying Comcast and CenturyLink for those services.

One of the most unique ways Longmont's elected leaders discussed this issue occurred during a City Council meeting. During that meeting, each official approached the podium and made a public comment about why they supported the 2A initiative. Unfortunately, we have not been able to locate video or audio, but the idea may inspire other communities as they seek to educate the community about the benefits of local, community ownership.

In other good news, nearby Boulder also embraced local self-reliance by narrowly voting to consider municipalization of the electrical grid. Xcel Energy spent close to a million dollars in a similar scare-campaign to Comcast in Longmont but Boulder voters decided to trust their local government more than a distant mega-corporations. Progress.

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.

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 Association as clients (with a testimonial from Comcast). But she is out of Denver, not Longmont.

The Vote-No phone calls that direct people to "Look Before We Leap" are filled with lies about the experience of other communities that have built full networks -- which is not even what Longmont is proposing to do. When pressed, the callers have claimed they are "volunteering" their time and refusing to divulge who pays them. A letter to the editor of the Times Call reports on one experience with the calls:

At 5:30 p.m. Sept. 24, I received a call from a listing called FAX GLOBAL 303-648-4835. An older woman began telling me that a yes vote for 2A was a mistake because 80 percent of cities that have done this failed. I asked who was sponsoring this call and she said it was volunteers. I asked who was paying for the equipment and got the runaround. I asked if the call center was in Longmont and she hung up. I dialed back and got a fax tone. The phone is a land line in south metro Denver.

Hard to imagine why anyone is volunteering to call people in another town and lie to them about a referendum.

The letter writer goes on to discuss the absurdity of Comcast's position that a yes vote is a risk for the community:

If I have a building that is paid for (as is the fiber-optic network) and is one-third rented and have the opportunity to rent the empty space and the renter goes bust, I have made money with little expense.

Longmont Seal

The grassroots groups supporting the initiative seem to have spent substantially less -- far less than even 1% of what Comcast is dropping to maintain its monopoly on fast broadband. But they are springing for pizza at a Vote Yes on 2A event next Friday.

We have an event scheduled for Friday, October 21st, from 3:00pm to 8:00pm at Left Hand Brewery in Longmont. We want to encourage the public to stop by and see high-tech displays showing what YES on ballot issue 2A COULD mean to them.

There is also a meeting tonight where the Longmont Tea Party will discuss the referendum. It will be curious to see who they side with -- the distant mega-corporations overcharging them for telecom or the local government that is directly accountable to the voters.

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.

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's pamphlet, on the cover, states that the contents are "intended to provide a factual summary, including arguments both for and against the proposal, of issues of official concern to Longmont voters. It is not intended to urge a vote in favor of or against Ballot Question 2A." Inside, it gives the text of the ballot question, a brief history of Longmont's fiber optic network and the restrictions on it, election dates, and sections titled "What is being asked of voters?", "Those in favor believe" and "Those opposed believe."

"The city used taxpayer dollars to campaign with a glossy mailer, complete with high-quality pictures, an inaccurate history, a lengthy advocacy section and a clearly token statement that does not show how most other cities fail when they enter this unpredictable business," said George Merritt, a senior strategist for Onsight Public Affairs of Denver and spokesman for Look Before We Leap.

Of course, as we discuss on a daily basis, the vast majority of communities have succeeded in this space. Even if one narrows the field to communities that have attempted the most difficult challenge of building citywide networks (which is not what Longmont presently plans), there are very few failures. In the case of Longmont, where the city already has built the asset, the only risk lies in not using it to its full potential.

This is simply another case of a few massive companies using their power to prevent new competition that would greatly benefit the community and create new jobs. The question is whether the majority of voters will be able to see through the blizzard of propaganda pushed by Comcast's "Look Before We Leap" proxies.

Broadband and Second Order Benefits

In a recent post about AT&T's funding of astroturf groups to promote its agenda, I took aim at the Internet Innovation Alliance, which has long promoted AT&T goals around the country.

Despite this criticism of them, they have produced a very good infographic (included below) that discusses the relationship between broadband and jobs. I would like to draw your attention to number 5 below in particular.

“10

#6 is a great explanation of why communities should directly invest in broadband. Local economic growth and secondary investment enabled by broadband expansion is 10 times the initial investment.

Think about that. While private companies have long built, owned, and operated most of the broadband networks, they have seriously underinvested. They underinvest because they cannot monetize many of the benefits from broadband. Faster, more reliable connections simply do not translate into more revenue for cable and telephone companies. So the big incumbents have largely ceased investing in next-generation networks.

These massive corporations do not care about the growth of secondary investments or other spillover effects from better broadband in communities because it does not change their bottom line -- the one thing they are supposed to prioritize over all other matters.

This is why communities should be investing in themselves. Communities do care about secondary investments and spillover benefits from broadband. In fact, they are specifically tasked with investing to benefit the community!

So when it comes to maximizing the benefits of broadband, community investments tend to make a lot of sense... and other secondary benefits.

AT&T Takes Its Astroturf Show on the Road, Midwest Edition

As AT&T tries to buy out its competition via the T-Mobile merger, it has sent out its allies and minions to push the company line in communities around the country. Here are two events in Minnesota and Wisconsin you should be aware of.

On Monday, October 3rd, the Humphrey School of Public Affairs at the University of Minnesota is going to host a debate between Amalia Deloney (MAG-Net Coordinator and friend of MuniNetworks.org) and Former Congressman Rick Boucher on the subject of AT&T's attempt to buy T-Mobile (which just happens to be the low cost provider in the wireless space).

A few short years ago, one would have expected Rick Boucher to champion opposition to this anti-competitive merger, but alas, the good citizens of his district rewarded his many years of hard work in Congress by voting for his opponent in the last election. As one often expects to see in DC, Rick took a new job and now works for a law firm with AT&T as a client.

Suddenly Rick Boucher is the Honorary Chairman of the "Internet Innovation Alliance," a group that has a name that sounds like he should head it. But the IIA is little more than a puppet for AT&T and like interests. They use it as part of their astroturf campaigns to further AT&T's agenda -- ensuring that most Americans are stuck using a network designed for AT&T's interests rather than the public interest.

We wish Amalia the best in the debate. This is a far better program than the last time AT&T came to the U's Public Policy school, which featured a blatantly one-sided program attacking inter-carrier compensation rules that have been essential for supporting rural network investment.

If you want to attend, you should RSVP to the Center for Science and Technology Public Policy. It will be at 2:00 in the Wilkins Room. Unfortunately, I have a prior appointment and cannot attend.

But the fun doesn't stop in Minnesota - it continues to Wisconsin on Oct 12 when The Internet Innovation Alliance joins a panel at an event by WisBusiness in Madison. Once again, the panel is greatly tilted in favor of a few self-interested industry voices that will undoubtedly explain how what is good for a few giant corporations is best for America.

One hopes for a future where we can have real debates about these important issues without playing the "who is puppeteer" game. AT&T has a legitimate point of view and should be free to advocate for it -- but should do so openly.

AT&T Stumbles in Purchase of "Grassroots" Support

Public interest advocates in the telecom arena have long been frustrated with a parade of large, powerful non-profit organizations blindly supporting the positions of powerful telecom companies that just happen to make large donations to those non-profits.

A story this week confirmed the worst of our suppositions: these groups often have little idea of what they are supporting. The Gay & Lesbian Alliance Against Defamation seemed pretty enthused about the AT&T T-Mobile takeover a few weeks ago. Odd for GLAAD to be excited about its constituency paying higher prices for wireless services, but whatever.

Until a few days ago, when we got a look behind the scenes -- AT&T wrote their statement and it was simply signed by the organization's President -- who apparently had no idea what it was about. But he knew that AT&T gives big money to the org. He has since resigned.

Around the time that we learned of the GLAAD shenanigans, we learned how super excited Cattle Ranchers are for the AT&T takeover of T-Mobile. There is absolutely no evidence to suggest this merger will do anything for rural residents but increase the prices they pay. There is no shortage of spectrum in rural areas so T-Mobile offers nothing AT&T cannot do on its own.

And while the Cattle Ranchers are clamoring for higher monthly prices from AT&T, the single best hope for rapidly expanding wireless broadband access in rural areas - the unlicensed white spaces - is being quietly killed. Ironic, ain't it?

I have long supported the efforts of the Media Action Grassroots, which works to organize and educate people about essential issues in telecom and media. They work with real people and represent real people's interests all the time, not just when it doesn't conflict with a big donor. We need to support organizations that support our values, particularly when it is inconvenient to do so.

Update: More of the media is finally starting to take notice of the obvious: eWeek.

Another Example of Regulatory Capture

As you observe (or hopefully, participate in), the debates around network neutrality or universal service fund reform, remember that many of the loudest voices in support of industry positions are likely to be astroturf front groups.  Between extremely well-financed astroturf organizations and industry-captured regulatory agencies, creating good policy that benefits the public is hard work.  It helps to study how industry has gamed the FCC in the past -- as documented by David Rosen and Bruce Kushnick in a recent Alternet article.

At the risk of being sarcastic, we can thank the FCC for working with the industry to make our phone bills to easy to read - an example is available here.