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story category North Carolina's Muni-Broadband Blockade
Law aims to make it more difficult for community broadband
(old news - 05:39PM Friday Jun 08 2007)
tags: legal · competition · municipal
North Carolina is considering passing a bill that makes it much more difficult for towns and cities to get into the broadband business. Incumbent providers say it's about a level playing field, while opponents argue it's about incumbents protecting their monopoly/duopoly. Meanwhile Senator Rick Boucher (you might recall him from his crusades against DRM) spoke about broadband yesterday at the Broadband Policy Summit in Arlington, and says he plans to push federal legislation that would eliminate these restrictive state-level laws.

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Forums » North Carolina's Muni-Broadband Blockade
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Lets Golf
Premium
join:2006-01-05
Davenport, FL

If it means more "campaign" money then it will pass

This state has been controlled by one party for over 75 years now. They passed laws to not allow for voters to pass referendums and draw the lines to make sure they maintain their hold. You absolutely have no say in this state as to how things are run. There is so much PAC money slung around, its ridiculous. Its all about who will give the most money and in this case it means telco's and cableco's.

Matt
You can't fix stupid
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..
·Corporate Colocation

Re: If it means more "campaign" money then it will pass

said by Lets Golf See Profile :

This state has been controlled by one party for over 75 years now. They passed laws to not allow for voters to pass referendums and draw the lines to make sure they maintain their hold. You absolutely have no say in this state as to how things are run. There is so much PAC money slung around, its ridiculous. Its all about who will give the most money and in this case it means telco's and cableco's.
Amen. It's hilarious.

All the young people I know vote Democrat or Green and yet, Red always wins the state. Sad.
--
Oh I'm so creative and all my programs are so easy to use ...

anon125487

@sprintlink.net

Re: If it means more "campaign" money then it will pass

North Carolina state legilature has been controlled by democrats at least the last 5 years. The last 2 govenors (Mike Easley won 2 terms)are democrats. Presently democrats are in the majority for the US house. John Edwards was a democrat senator during the last prez elections

davoice

join:2000-08-12
Saxapahaw, NC
·RoadRunner Cable

Re: If it means more "campaign" money then it will pass

Actually, state level legislature is the one place where people voices actually make a difference. If 2 constituents from each district would call their representative and senator voicing disapproval, this bill would be dead in the water.

Problem is that most people never take action b/c they feel powerless.

It doesn't take a lot of local level action to wag the dog... but it does take it being consistent across the whole state. A blip in one area is easily ignored. When it comes from across the whole state, heads turn.

}Davoice

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

said by Matt See Profile :

All the young people I know vote Democrat or Green and yet, Red always wins the state. Sad.
Give it time. Once they notice how much it sucks to be signing the fronts of the checks instead of the back, they will come around.
--
Only SHATNER is Kirk.

ninjatutle
You can keep the "change"

join:2006-01-02
San Ramon, CA

Hotels, internet cafe's, etc

spent a good deal of money investing in systems.

Dominokat
Who me?
Premium
join:2002-08-06
Boothbay, ME
clubs:
·RoadRunner Cable

Playing field

How does things like this level the playing field.
You hear about this with incumbents saying they will wire an area IF NO OTHER COMPETITION IS ALLOWED. However, any one that tries to put in a muni system (that isn't linked to incumbent) gets their asses sued BY INCUMBENTS.
And the end result, is the same. A promise from an incumbent to provide service, and a sued (other) provider resulting in NO SERVICE TO ANYONE.
Incumbents give broken promises to protect their ass (money)
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Playing field

It levels the field in the sense that semi-bottomless government treasuries will now have to compete equally with for-profit corporations. Seems fair to me.
instead of setting a four-year time table for being cash-flow positive for a project, the bill now says it must be in “such time to be consistent with commercial practices for similar projects.”

Dominokat
Who me?
Premium
join:2002-08-06
Boothbay, ME
clubs:

edit:
June 8th, @07:08PM

Re: Playing field

Who wins if everyone sues their competitor?
Not the consumer.
openbox9

join:2004-01-26
Navarre, FL

Re: Playing field

This isn't about suing. It's about a law that should minimize the need of the corporations to sue the munis. Besides, don't make the mistake that this has ever been about the consumer.

ieolus
Support The Clecs

join:2001-06-19
Duluth, GA

Re: Playing field

You are saying community broadband isn't about the consumer? If not, WTF is?
--
"Speak for yourself "Chadmaster" - lesopp
openbox9

join:2004-01-26
Navarre, FL

Re: Playing field

No, I was referring to Domino's comment about the consumer winning if everyone sues their competitors. As to WTF is? Very little.

asdfdfdfdf

@Level3.net

There is nothing more absurd than an incumbent preaching about fairness and level playing fields. Fairness has squat to do with the economy anyway, as we are constantly reminded by the defenders of the status quo.

There is no reason why a government provided service should have to compete on the terms of a for profit corporation. The corporation's agenda is to maximize profit for the owners. It has no sense of social obligations, the needs of the larger community or its effects on those outside itself. The government's agenda is not private and for profit and it has no obligation to play by the rules of for profit corporate operation. A key concern, in cases like this, is to fill in the gaps in infrastructure that result from the operations of the market. It is silly to demand that it do this by replicating the logic of corporate market behavior.

asdfdfdfdf

@Level3.net

Re: Playing field

For those who say this is unfair consider this: A profit seeking enterprise has every incentive to subvert and destroy competition and attain market control to maximize and sustain it's advantage. A government service, driven by a different logic, has no such agenda and can happily coexist with others. The more you drive government to abide by the logic of the for profits, the more you motivate them to destroy what then become their competitors.

Munis do not view verizon and ATT as competitors to be attacked. It is the incumbents that view munis as competitors. Forcing all operations to abide by the same conditions will force all operations to behave in the same aggressive way towards others. This not only undermines the very purpose of government intervention with respect to the public and consumer, but also makes them a GREATER threat to the incumbents because they then have no choice but to view the existence of the incumbents as a danger to be aggressively contained.

Kakalaky
Premium
join:2003-04-04
Broken Arrow, OK
clubs:
NC has to have a balanced budget since the balanced budget act of 1997. We don't have semi-bottomless government treasuries.
openbox9

join:2004-01-26
Navarre, FL

Re: Playing field

The point is the government has less (no?) tax implication, can take on debt easier, and generally has no fear of going bankrupt.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Playing field

said by openbox9 See Profile :

The point is the government has less (no?) tax implication, can take on debt easier, and generally has no fear of going bankrupt.
And that matters because.......?

Let's keep one thing straight here as you continue to try to defend a monopolistic anticonsumer industry. The muni project, wouldn't be a muni project if the industry you are trying to defend was doing their job in the first place. If they arent providing the services wanted/needed in an area in a timely fashion of those there because of their own greedy reasons, then it is every citizens right there to bring it there themselves using government intervention if they so choose. If the incumbents are worried about it then they can A.) Bring the services wanted before the muni does B.) Compete with the muni the best they can for failing to come to market whne they should of or finally C.) Pack up shop and get the hell out.

I personally would say C. as they have had plenty of time to bring the services. They have choose not to so screw em, make them go.
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Playing field

said by Skippy25 See Profile :

Let's keep one thing straight here as you continue to try to defend a monopolistic anticonsumer industry.
Lets keep another thing straight here as well. I'm not defending monopolistic or anti-consumer industries.
said by Skippy25 See Profile :

Compete with the muni the best they can for failing to come to market whne they should of
And therein lies the rub for this whole conversation. Potentially unfair competition between public and private entities.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Playing field

Yes you are, or are you denying that the telco and cable companies are monopolistic and anti-consumer?

No rub, they have had enough time to bring it to market and have chosen not to. Therefore, their competition is only competition (fairly or not) because of their own poor choice. If they don't think they can compete, then they should beat them to market and not have to worry about it. But instead of bringing it to market they choose to whine, complain, sue, and do nothing. So as I said, C above: Screw em, they can leave and let another company or the government (at the citizens choice) provide the service they dont want to provide.
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Playing field

said by Skippy25 See Profile :

Yes you are, or are you denying that the telco and cable companies are monopolistic and anti-consumer?
Even if I had said that I supported the cable companies and telcos (which I didn't, I support equality in competition between private and public if private really wants to enter a marketplace), calling them monopolistic in today's world is off-base and a stretch in a lot of markets. As for anti-consumer, show me a profit-based industry that is pro-consumer. Or maybe that is your stance, that the only pro-consumer force out there is government and their municipalities.

jslik
That just happened
Premium
join:2006-03-17
clubs:

said by openbox9 See Profile :

It levels the field in the sense that semi-bottomless government treasuries will now have to compete equally with for-profit corporations. Seems fair to me.
Excuse me, town 'X' of say, 5,000, has more money for broadband deployment (and the lawsuits) than the big telcos/cable?
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Playing field

The town does if they want to. If a town wants to bring another industry into their municipality, they will raise taxes, float bonds (which most likely will lead to raised taxes), transfer funding from another line item, etc. While private industry can do some of that, they will eventually have to turn a profit or they will cease to exist. A municipality on the other, may never have to be profitable, or even break even. They'll cover the loss by raising taxes.

jslik
That just happened
Premium
join:2006-03-17
clubs:

Re: Playing field

There are quite definite and very finite limits for most cities in raising taxes to cover these ventures, especially for small towns. You honestly think the AT&Ts of the world couldn't handle, say a $1,000,000 loss better than a town of 5,000? I guarantee you a loss like that would bankrupt most small towns.
openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Re: Playing field

I have no doubt that AT&T could absorb a $1M loss a lot easier than a town of 5K, but that's not the real issue. Just because AT&T is a multi-billion dollar corporation doesn't mean they should eat a loss or have to try to unfairly compete against a competitor that is able to conduct business. If municipalities want to get into business, then they should compete on equal footing with other businesses.

marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

said by openbox9 See Profile :

The town does if they want to. If a town wants to bring another industry into their municipality, they will raise taxes, float bonds (which most likely will lead to raised taxes), transfer funding from another line item, etc. While private industry can do some of that, they will eventually have to turn a profit or they will cease to exist. A municipality on the other, may never have to be profitable, or even break even. They'll cover the loss by raising taxes.
Municipal bond issues are far from limitless. They are actually more restricted then commercial bonds.
As well, a town cannot raise taxes at will; only the state (normally the office of the secretary of state) can approve such an increase and the increase still has to go to a vote. There is a very real cap on how much tax a city can raise.

Same thing with the line item transfering. You can transfer between line items in the same fund, but you cannot transfer from line items in a different fund. Which means, as far as funding something like a broadband utility, there would be no way to gain funding by transferring line items.
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marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO

said by openbox9 See Profile :

It levels the field in the sense that semi-bottomless government treasuries will now have to compete equally with for-profit corporations. Seems fair to me.
instead of setting a four-year time table for being cash-flow positive for a project, the bill now says it must be in “such time to be consistent with commercial practices for similar projects.”
The irony being that similar commerical projects seem to come nowhere close to cash-flow positive within four years.
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openbox9

join:2004-01-26
Navarre, FL

Re: Playing field

Maybe that's why the verbiage in the proposed law was changed from "four-year time table" to "consistent with commercial practices".
Kearnstd
Elf Wizard

join:2002-01-22
Mullica Hill, NJ

this law is wrong and the incumbents have zero right to sue over munis.

think of it this way, many areas they sue to shut down muni projects they already have no intentions to deploy their services as they deemed the town unprofitable. see me if i had to judge one of those cases, id put the muni on hold for 18 months and give the incumbents that much time to deploy a project with equal speeds/price to the planned muni or the muni gets the full go ahead.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
Kearnstd
Elf Wizard

join:2002-01-22
Mullica Hill, NJ

AT&T has no right to stop munis unless they intend to deploy an equal network. many of these towns simply want broadband but the big ole AT&T says sorry you have to be stuck on dialup because our braindead investors say you arent profitable. but we want to stop your FTTH incast sometime in 50 years we decide to wire in DSL.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports

MrMoody
Liberal Capitalist

join:2002-09-03
Smithfield, NC
·magicjack.com
·Embarq

Corporatocracy

quote:
Incumbent providers say it's about a level playing field, while opponents argue it's about incumbents protecting their monopoly/duopoly.
So the incumbents are saying it's to protect them from unfair competition while the opponents are saying it's to protect them from competition. Seems pretty straightforward.

What I can't believe is the number of politicians in the pockets of big business. Welcome to the corporatocracy. More and more, our government exists only to protect big business's bottom line.

TScheisskopf
World News Trust

join:2005-02-13
Belvidere, NJ
·Sprint Broadband D..

Re: Corporatocracy

Certainly not the consumer. I would hope tarheels start screaming loud.

You know, NC has become an interesting place, kind of like Paris under Robespierre was an interesting place. Recently, I heard about a person, in Greenboro, who attempted suicide for a second time. That's SECOND TIME. She was not involuntarily committed to an institution the first time, nor was she on the second time, even though she is a clear danger to herself.

Why?

Because NC does not have an involuntary commitment law for people who attempt suicide, or for those who are expressing suicidal ideations with a plan.

Sounds like the state government is not addressing the important things down there, and that's a crying shame. My family's roots run deep in that state, my great-uncle wrote the definitive history of early NC. It used to be a lot different , in a good way.

See 6 replies to this post

Dominokat
Who me?
Premium
join:2002-08-06
Boothbay, ME
clubs:

edit:
June 8th, @09:12PM

Sooner or later this is all going to back fire and the economy is going to go to HELL. We will have no other then our government and greedy corporations to blame.

StudioTech
More clear QAM channels, please

join:2001-10-10
Edison, NJ

edit:
June 8th, @09:32PM

Wrong thread

...

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

edit:
June 8th, @09:15PM

"Level Playing Field"

"Level Playing Field"

Translation: A playing field where only 1 incumbent Telephone Company and 1 CableTV company are allowed on the field, and they always win, and the consumer always loses.

See 12 replies to this post
Forums » North Carolina's Muni-Broadband Blockade


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