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Time Warner Cable’s $5.26 Million Grant from NY Taxpayers Ruins Their Rhetoric

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Time Warner Cable objects to publicly-owned broadband networks because they represent “unfair” publicly-funded “competition,” despite the fact TWC is also on the public dole.

The next time a cable operator or phone company claims community-owned broadband providers deliver unfair competition because they are government-funded, remind them that quite often that phone or cable company also happens to be on the public dole.

Take Time Warner Cable, which this week won a $5,266,979 grant courtesy of New York State taxpayers to extend their cable system to 4,114 homes in rural parts of upstate New York just outside of the cable company’s current service areas. That equals $1,280.26 in state tax dollars per household. For that public investment, Time Warner will reap private profits for shareholders from selling broadband, cable-TV, phone, and home security services to its newest customers indefinitely.

Now unlike some of my conservative friends, I am not opposed to the state spending money to wire rural New York. It is obvious cable and phone companies will simply never wire these areas on their own so long as Return on Investment conditions fail in these places. What does annoy me are the endless arguments we hear in opposition to public broadband from these same companies, claiming with a straight face that community-owned networks represent “unfair competition” because they are publicly funded. Time Warner Cable is no stranger to public taxpayer benefits itself, having won millions in tax abatements and credits in North Carolina, Ohio and a cool $5 million courtesy of Mr. and Mrs. N.Y. Taxpayer.

Many of the nation’s private telecommunications companies have plenty of love for federal, state, and local officials who have passed favorable tax laws and policies at their behest:

So let us end the silly rhetoric about public vs. private broadband being a question of fairness. This is really a question about who controls your broadband future,  your community or big telecom corporations.

In states like Georgia, elected politicians like Rep. Mark Hamilton want those decisions made by Comcast (Pennsylvania), Windstream (Arkansas) and AT&T (Texas). His bill would make it next to impossible for a local community to do anything but beg and plead the phone company to deliver something, anything that resembles broadband service. For a good part of rural Georgia (and elsewhere), the answer has always been a resounding “no,” at least until the federal government steps up and kicks in your money to help defray the costs of extending Windstream or AT&T’s sub par DSL service that slows to a crawl once the kids are out of school.

Windstream waited for the federal government to kick in $7.28 million in taxpayer dollars before it would agree to extend its DSL service to customers in its own home state of Arkansas.

Windstream waited for the federal government to kick in $7.28 million in taxpayer dollars before it would agree to extend its DSL service to rural customers in its own home state of Arkansas.

You have to wonder about the Republicans in Georgia these days who used to fight for local and state control over almost everything. It should be instinctive for any conservative to want out-of-state pointyheads out of their business, but Rep. Mark Hamilton, himself a business owner, seems content forfeiting those rights to companies headquartered hundreds of miles away. If it was the federal government telling Georgia what kind of broadband service it deserves, do you think Mr. Hamilton would be so amenable? Unfortunately, should Hamilton have his way, for the foreseeable future, residents and business owners in Gray, Sparta, or Eatonton to count just a few will have broadband just the way the state’s phone companies want it — super slow DSL, dial-up or satellite fraudband.

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  • mike: I guess they mean like the upgrades Time Warner was in the middle of when the sale went through and Charter then dropped the ax on....
  • Taylor Langdon: I was told on the phone $69.99 was the lowest they'd go. I used online chat after that and got $64.99....
  • Paul Houle: EJ, all too often, "technology agnostic" seems to be a codeword for the same DSL and fixed wireless technologies that have (in the case of DSL...
  • EJ: Kevin S that is not a fair judgement to make. You just have to put requirements on the 25mbps which should be on all providers anyways. Simple require...
  • Kevin S: You (Bloomburg) had me in your corner in 100% support of your views and findings right up until the end...when you stated: "Bloomberg supports the FC...
  • Shaun: The same thing happened when Verizon happened, when Bell took over GTE.. GTE, was more like time warner, and was a decent company.. Bell.. another cha...
  • Shaun: Their own pricing plans proves this to be a lie. You know that the company is not going to give you "any" plan where they are going to "loose" money.....
  • L Nova: I really wish that these companies told wall street to f**k off and do what they feel is right to retain customers. Self-aggrandizing douchenozzles su...
  • Jim Jackson: Yeah when you introduce $65 billion in debt overnight that money has to come from somewhere. There is so little synergies in a cable company merger t...
  • Ronald: How long until those customers realize they get most of the good stuff with just the antenna, and decide they don't need Dish anymore?...
  • cartier repliques bijoux: cartierlovejesduas I remember travelling on the Coronation in 1938 and 1939Teo minutes stop at Newcastle on the way North and two minutes also at York...
  • FredH: Charters/Spectrum's executive team is so full of crap it isn't funny. Time Warner Cable was a blessing compared to Spectrum. I for one wish this mer...

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