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ALEC Front Group Responds to Truth-telling About N.C. Broadband With Talking Points

The Man from A.L.E.C. pockets Time Warner Cable and AT&T's money.

The Man from A.L.E.C. represents premiere members Time Warner Cable and AT&T.

The News & Observer has printed a rebuttal to a guest editorial from Christopher Mitchell and Todd O’Boyle accusing the two of misleading readers about the true state of North Carolina’s broadband.

The author, John Stephenson, is director of the Communications and Technology Task Force at the American Legislative Exchange Council (ALEC). Considering North Carolina’s largest broadband providers — AT&T and Time Warner Cable — are both card-carrying members of ALEC, his response mouths their words.

Nearly 300 million Americans have access to at least one and, in most cases, two or three broadband providers. Moreover, wireless and satellite providers continue to invest in 4G wireless technology and new satellites that can now offer speeds rivaling wired broadband.

By contrast, government-owned broadband has demonstrated mixed results at best and abject failure at worst. Cities’ attempts to build and operate their own broadband networks have been marked by poor results, huge debts and accounting gimmicks that threaten taxpayers.

In North Carolina, broadband “consultants” persuaded cities like Salisbury and Mooresville to ignore basic economics and to compete against private providers. But the broadband networks recorded deficits and were forced to tap other sources of financing. Despite these losses, as many as three dozen North Carolina cities appeared ready to go down the same dangerous path.

Stephenson’s rebuttal regurgitates the usual Time Warner Cable and AT&T talking points — the same ones used to convince North Carolina legislators to ban community broadband (with contributions to their campaign coffers stapled to the back).

Fact: North Carolinians typically have at most two choices for broadband, the telephone and cable company. Only a few cities were lucky enough to construct community-owned alternatives before the hammer fell in the General Assembly. Stephenson’s alternatives include satellite broadband, which delivers slow speeds and a paltry usage allowance or wireless 4G broadband that will set you back a fortune. North Carolina’s largest providers AT&T and Verizon Wireless sell service with a starting monthly cap of 1GB. Anything more costs more. These are hardly comparable choices to wired broadband.

Fact: Community broadband in cities like Wilson and Salisbury dramatically outperform Time Warner Cable and AT&T and deliver a fair deal instead of temporary promotions and endless rate hikes from the cable/telco bully boys. Stephenson uses the case of Mooresville to trash community broadband, which is a weak example. That city bought a decrepit cable system from bankrupt Adelphia Cable and had to spend a fortune to rebuild it. It’s now on track to deliver for local residents. Those communities would have been better off with a fiber to the home system, but the rebuilt cable system still delivers more competition than Time Warner and AT&T ever gave one-another.

Stephenson also ignores the debts the cable and phone companies piled up when they first built their networks. It is the cost of getting into the telecommunications business. Cable companies needed 10, 20, or even 30 years to pay off construction costs. Community providers got into telecommunications with the knowledge it would take time to pay back the initial debt, but they hope to do it without gouging customers.

ALEC routinely pits community providers against private ones as “government funded unfair broadband competition.” But the group ignores the fact cities like Charlotte have doled out tax incentives and other goodies to Time Warner Cable for building its new headquarters there. AT&T is not doing too bad either, securing statewide video franchising and effective permission to drop its ugly U-verse cabinets on public easements all over the state.

The fact is, the only disruptive force in North Carolina’s broadband market comes from community-owned providers trying to break up the comfortable telco-cable duopoly that charges nearly the same prices for the same yesteryear service. That’s a story The Man from A.L.E.C. cannot afford to tell you.

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elfonblog
11 years ago

It would be nice to have a task force that knew the industry’s tricks and talking points and could counsel folks on how industry’s going to respond. This way they could cover the confusing points in advance, and leave the industry’s standard response looking as weak and cheap as it is.

Christopher Mitchell
11 years ago
Reply to  elfonblog

We have these groups but they are underfunded. Support Stop the Cap! and my organization, the Institute for Local Self-Reliance and we can expand our ability to do just that.

txpatriot
txpatriot
11 years ago

Phillip, although I often disagree with you I truly admire your passion and dedication. I’d say “keep up the good work” but I know you will regardless of how I feel about it!

elfonblog
11 years ago
Reply to  txpatriot

Lol, between myself (in Austin) and txpatriot, Phillip sure does get his share of love from Texas!

elfonblog
11 years ago

Phillip, your blog is one of my faves. You have a clear, professional writing style that makes it easy to digest the information. I envy this, as I used to do a lot of public writing and never really found my own voice. Keep up the good work. I’ll donate whenever I can, but I wonder if it might not be a good idea to think about everything that can be done *without* a big lump of money. Let’s look at what well-funded corporations and their fake PACs do with the dough. They pay for pseudo scientific studies that benefit… Read more »

elfonblog
11 years ago
Reply to  elfonblog

P.S. I just found your channel, and I was right! You have an excellent “TV” voice! Go for it!

elfonblog
11 years ago

Aha! Regular 2-hr shows would sure burn me out fast! There were some 1-2hr tech podcasts I used to listen to, but they just got too chatty to keep my attention, and I no longer have a long commute to spend on them. I was thinking more like a series of under-5m bits that each outline a response to a various fishy industry positions. They could be stacked together to make a short seminar, and be handy reference later on. Being on YouTube, I’d put transcripts right in each description area to make them super-searchable. I wouldn’t worry about how… Read more »

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