Despite hundreds of consumer complaints from residents in and around Baton Rouge, the Louisiana Public Service Commission has refused to vote itself the authority to threaten AT&T with a fine up to $175,000 for poor service.

Ignoring an agreement by AT&T to adhere to minimum service standards in return for permission to acquire BellSouth Corporation in 2006, the Commission oddly decided not to enforce those conditions for the protection of AT&T customers.  On Wednesday, in a 3-2 vote, the PSC instead decided to “study” the matter and to further consider whether or not it should impose the same minimum service standards on all of Louisiana’s phone companies.

Commissioner Foster Campbell, of Bossier Parish in northern Louisiana, was stunned by the vote’s results.

“You’re telling AT&T that no matter what they do, no matter how bad their service, we’re not going to do anything?” he asked.

Campbell told his fellow Commissioners he’s worn out after taking large numbers of calls from upset residents in northern Louisiana.

Field also voted for the measure. He serves District 2 in southern-central Louisiana

This is the second time the PSC refused to fine AT&T and instead “study” the matter.  Meanwhile, customer complaints from the Baton Rouge area continue to pour into the PSC offices.

Commissioner Jimmy Field, who represents the Baton Rouge area, told AP his office had been swarmed with consumers complaining about the length of time to get service installed and outages lasting more than 24 hours. Field wanted the PSC to hang the fine over AT&T’s head again.

Complaints against AT&T in Louisiana also involve lengthy waits for repair call appointments, delays in getting new lines installed, missed appointments, and extended service outages.

In just four months last summer, the Commission confirmed 435 of the 778 complaints lodged across the state against AT&T.

Apparently if the problems don’t impact the residents you represent, there isn’t a problem.

The three commissioners that voted against the proposal to potentially fine AT&T said as much.

Skrmetta was the ringleader of the three opposed to potentially fining AT&T. He serves District 1 in east Louisiana

PSC Commissioners Eric Skrmetta, of Metairie, Lambert Boissiere III, of New Orleans, and Clyde Holloway, of Forest Hill said it wasn’t fair to single out just one company.

Skrmetta went further and said he hadn’t seen many complaints in his district, north of Lake Pontchartrain.  But he had received complaints about some of AT&T’s competitors.

Boissiere voted against the measure. He represents District 3 in central Louisiana

Boissiere, despite voting against the proposal, delivered a verbal spanking to the AT&T representative on hand.

“I don’t like your methods. I don’t like your style. I understand where my fellow commissioners are coming from,” Boissiere said.

Debbie Canale, the executive director for regulation for AT&T Louisiana, wasn’t much impressed with Boissiere’s comments.

“Our customers vote with their money and would do business with competitors, if they were unhappy with AT&T,” Canale offered.

Our Take

The three commissioners who voted against giving themselves the power to make their regulatory authority count don’t belong on any Public Service Commission.  Any member of a review board should be concerned first and foremost with the interests of the residents they represent.  The three Louisiana commissioners who voted against the proposal failed to do that.  They should be removed immediately.

The only way to impress telecommunications companies under your review is to have the power to make them pay attention to your rulings.  Stiff fines for repeated violations (and 435 in just four months is an incredible number) will make any company sit up, take notice and fix problems.

Without it, verbal scoldings are little more than lip service to a provider that can afford to be arrogant, especially in rural Louisiana where competitive choice is hardly bountiful.

Canale’s response to the Commission boils down to, “if you don’t like our service, leave.”  If only every Louisiana resident could choose another landline provider if they wanted.

Holloway, the third "no" vote, represents District 4 in western Louisiana

Ignoring a company’s problems in one region of the state virtually guarantees those problems will eventually visit another.  It is short-sighted and inexcusable to ignore hundreds of valid complaints,  condemning residents to more of the same in the future.  Voting (for a second time) to “study” the issue is an insult to residents and little more than a stall tactic.

The Commission’s suggestion it wants to impose regulatory fairness comes despite a clear agreement, less than four years old, that AT&T signed onto as part of its buyout of BellSouth.  It says AT&T will commit to certain standards of service in return for regulatory approval of the merger.  AT&T already sought to renege on that agreement in mid-2009 when it asked the Commission to suspend fines as part of their “study” about regulatory policies across the state.

So much for that hard-fought consumer protection deal.  Evidently, what AT&T agrees to one year is fodder for their lobbyists the next.  If AT&T wants changes, can consumers demand some changes of their own that assure this company will provide quality service?

As usual, AT&T’s regulatory affairs never give consumers a good deal.  For 435 residents of Louisiana, it also gave them no dial tone and a lengthy wait to get it back.

At for Commissioners Skrmetta, Boissiere and Holloway, the only question that should be on the table is whether they represent residents or AT&T Louisiana.

That is something worthy of careful study.

Louisiana's Public Service Commission is made up of five commissioners, each with their own district to represent.

A Norfolk, Virginia girl faces serious reconstructive surgery after running into an unattended cable line the city determined to be the property of Cox Cable.

Laurel Pont says her grandchildren were on their bicycles in May of 2008 when Willow got caught in a spiraling cable stretched across several lawns and driveways in an alley near her home.  The cable had been left there, unattended, for at least seven months.

Bill Pont noted, “This wasn’t just a wire, this was a coil. It was like a giant slinky laying here.”

Both of Font’s grandchildren were injured from the encounter.  The result for Font’s granddaughter was a serious facial injury.

Laurel Pont told WAVY-TV the little girl faces reconstructive surgery after she nearly severed her top lip from her face.

“She doesn’t smile. She used to have this huge smile, big toothy grin,” Pont said.

The matter is now in the courts, and that prompted a major dispute between city officials and Cox Cable, both named as defendants, over who is responsible for the cable.

“We originally sued Cox and the City of Norfolk. The City of Norfolk has filed what they call a cross claim against Cox. Cox then filed what they call a 3rd party action [against a subcontractor],” said Joseph Young, the Font’s attorney.

The Font’s turned to WAVY-TV’s 10 On Your Side in hopes of getting the matter resolved and to also expose the danger of unattended utility cables.  The Font family is also working with legislators to create a law that would limit the amount of time a hazard can remain in a neighborhood.

WAVY-TV’s ‘10 On Your Side’ covers the story of a girl seriously injured because of unattended cable television wiring. (5 minutes)

Stimulus funds are helping bridge the digital divide by bringing high speed Internet to rural areas in southeastern New Mexico.

Thursday, Rep. Ben Ray Luján applauded investments in rural broadband in New Mexico made through the American Recovery and Reinvestment Act.

“Broadband technology connects communities, helps businesses grow, and provides students with the opportunity to learn new skills. As we expand broadband technology, we must ensure that our rural communities have access,” said Luján. “It is encouraging that the Recovery Act is making this important investment in broadband technology, especially in our rural and tribal communities.”

Penasco Valley Telecommunications in Artesia has been awarded $10 million in federal stimulus money to string miles of fiber optic cable to rural towns like Hondo, Mayhill and Hope.

The fiber optic cable will be a vital link for the area’s homes, businesses, schools and emergency services.

“It’s important for the rural parts to have access to the Internet, otherwise the digital divide they talk about will just get wider,” said Glenn Lovelace of Penasco Valley Telecommunications.

The project is scheduled for completion some time next year.

Since the American Recovery and Reinvestment Act of 2009 began distributing stimulus funds, it has provided roughly $250 million in funding for projects and programs in New Mexico.

The two New Mexico broadband projects that will receive funding:

Pueblo de San Ildefonso: TewaCom Broadband Initiative (TBI), Phase 1-Upper Rio Grande Valley Project; $632,225 loan and $632,225 grant. The funding will enable the Pueblo to expand service to 2,405 households.

Penasco Valley Telephone Cooperative Inc.: The Penasco Valley Telephone (PVT) Incumbent Local Exchange Carrier (ILEC) Project; $4,818,607 loan and $4,770,660 grant. The funding will provide high-speed broadband to unserved areas in the ILEC territory through fiber and wireless technology.

KOB-TV in Albuquerque reports the high speed broadband projects made possible from stimulus funding resemble the kind of public works projects that were common during the Great Depression. (2 minutes)

An administrative law judge reviewing the proposed sale of Verizon landlines to Frontier Communications has formally recommended the Illinois Commerce Commission (ICC) reject the deal.

Allowing Verizon to sell 600,000 Illinois phone lines, mostly in less populated areas of the state, would likely harm the quality of service customers receive from their landline provider according to Judge Lisa Tapia.

Tapia was given the responsibility to review the transaction’s merits before the deal moves before the ICC for final consideration.  Her 46-page report concludes that Frontier’s existing Illinois customers would likely be harmed, along with existing Verizon customers, because of the enormous debt Frontier Communications will take on as part of the deal.  Tapia writes the economic impact of the deal “will diminish Frontier’s ability to perform its duties to provide adequate, reliable, efficient, safe and least-cost public utility service.”

According to Staff witness Mr. McClerren, both Frontier Illinois operating ILECs (local phone companies) and Verizon have, in recent years, had some difficulty meeting the minimum key standards contained in Part 730. The key Part 730 standards are Toll & Assistance Operator Answer Time, Directory Assistance Operator Answer Time, Repair Office Answer Time, Business Office Answer Time, Service Installations, Out of Service for Less Than 24 Hours, and Trouble Reports.

Ms. McClerren characterized the performance of the nine Frontier Illinois operating ILECs as poor relative to the Repair Office Answer Time and Out of Service for Less Than 24 Hours standards and unacceptable relative to the Business Office Answer Time standard. Mr. McClerren concluded that given Frontier’s poorer performance relative to Verizon’s performance on Repair Office Answer Time, Business Office Answer Time, and Out of Service for Less Than 24 Hours , service quality would likely decline in the current Verizon North and Verizon South territories if the proposed reorganization is allowed to occur. Mr. McClerren further stated that because Frontier had continuously failed to satisfy the Business Office Answer Time, Staff expressed to Frontier representatives that it was prepared to initiate a hearing under Section 730.120 of the Act for the purpose of imposing penalties.

The evidence shows there is a significant risk that problems could occur if the transition is made too prematurely so as to create a potential for harm to Illinois customers. When weighed against the many risks of the Transaction, including, among others, the risk of systems integration, the purported benefits of the Transaction do not justify approval.

Of particular concern to Judge Tapia is the impact on Frontier’s finances and operating ability to take on more than 600,000 new customers in Illinois.  Despite company promises to the contrary, Tapia’s report notes we’ve been down this road before, particularly with FairPoint Communications, which went bankrupt late last year.

The evidence shows there is a significant risk that problems could occur if the transition is made too prematurely so as to create a potential for harm to Illinois customers. When weighed against the many risks of the Transaction, including, among others, the risk of systems integration, the purported benefits of the Transaction do not justify approval.

[...]

For instance, Frontier’s total Illinois access lines would be increasing from 97,000 to over 670,000 lines. Frontier would also be almost tripling its size and will be burdened with an enormous amount of approximately $3.3 billion in debt. The financial pressure along with more wirelines to handle leads the Commission to conclude that service quality will certainly be diminished. The ultimate consequences of diminished quality service will be borne by Illinois customers.

What about broadband and Frontier’s promises to expand it into rural communities across Illinois?  Judge Tapia’s report questions whether Frontier will do any better than Verizon did.

The record also does not support a finding that Frontier will be any more effective than Verizon in expanding the scope and quality of broadband services in the Illinois service areas it proposes to acquire from Verizon. To the contrary, the evidence shows that it is very unlikely that a smaller, less experienced operator would be able to support such an investment.

The findings also call attention to Frontier’s practice of paying out more in dividends to shareholders than the company actually earns from customers.  The International Brotherhood of Electrical Workers (IBEW), which has consistently argued against Verizon spinoffs, says no company can expect to succeed by paying out more than they earn just to keep a favorable stock price.  The IBEW has correctly predicted the outcome of other Verizon spinoffs, and warned the Verizon-Frontier deal is simply more of the same.

IBEW pointed to a 2007 Montana Public Service Commission (“PSC”) decision in which the PSC rejected a proposed merger and acquisition because “In normal utility operations, retained earnings provide a vital source of financial strength for capital investment and as reserves that are available during unexpected financial strains.  Regularly paying out dividends in excess of net earnings by a utility is inappropriate and risky because having insufficient reserves on hand could adversely affect the utility’s ability to provide adequate service.”

IBEW stated that the Montana PSC’s findings apply equally to Frontier. The IBEW endorsed the reasoning of the Montana PSC and reached the same conclusion about Frontier.

According to IBEW, Frontier only has two or three more years before it will have paid out all of its retained earnings to stockholders, based on its performance in the first half of 2009. IBEW also stated that two Wall Street financial analysts have independently found that Frontier’s shareholders’ equity is likely to become negative in 2012 or 2013. After that, Frontier’s dividend would have to be reduced to no more than its net income – a likely dividend cut of 60% or more. IBEW argued that without this Transaction, Frontier’s business model will fail within two or three years. IBEW asserted that Frontier does not plan to change its approach to business. Frontier still plans to pay out more to shareholders than it earns in net income and that there is no scenario where Frontier plans to pay out less in dividends than it earns in net income during the 2010 to 2014 period examined.

The report agrees with the IBEW position:

Frontier’s risky business model is a concern. The Commission agrees with IBEW that in normal utility operations, retained earnings provide a vital source of financial strength for capital investment and as reserves that are available during unexpected financial strains. Regularly paying out dividends in excess of net earnings by a utility is inappropriate and risky because having insufficient reserves on hand could adversely affect the utility’s ability to provide adequate service. Based on the record, this has been Frontier’s business practice. However, Frontier testified that it has revised its dividend policy. According to Frontier, it currently pays an annual cash dividend of $1.00 per share of Frontier common stock. Frontier after the closing of the proposed Transaction, intends to change its dividend policy to pay an annual cash dividend of $0.75 per share of Frontier common stock, reducing its dividend by 25% – from $1.00 to $0.75 per share – effective with the close of the Transaction.

The Commission does not find Frontier’s assertion credible. Specifically, that it plans to revise its dividend policy (at the discretion of it Board of Directors) because of this proposed Transaction when this has been Frontier’s approach to business for years.

Hundreds of pages of comments from consumers and other interested parties have been recorded by the ICC, many in opposition to the proposed deal.  The ICC’s next step is to accept comments about the report, which have already been forthcoming.

McCarthy

Dan McCarthy, Chief Operating Officer of Frontier Communications was among the first.

“Today’s proposed order by an administrative law judge in Illinois ignores the numerous public interest benefits outlined in the complete record developed in the Frontier/Verizon transaction. This record fully addresses the issues raised by the ALJ. We are confident that once the full Illinois Commerce Commission reviews the record, they will vote to support the transaction,” McCarthy said in a prepared statement.

“Frontier has formally committed to expand broadband to 85 percent of the households in the Verizon Illinois service areas covered by the transaction and spend in excess of $40 million to accomplish this effort,” the statement says, further noting that the company already provides DSL broadband service to 90 percent of its existing footprint in the state.

The full ICC is expected to rule by the end of April.

Among the Illinois communities impacted by the transaction:

Chatham, Divernon, Elkhart, Illiopolis, Jacksonville, Lincoln, Loami, New Berlin, Pawnee, Pleasant Plains, Sherman, Virden, Waverly and Williamsville.

Mediacom is the nation's eighth largest cable company, serving 1.3 million customers in 22 states

Customers across the country are growing increasingly annoyed with Mediacom, the nation’s eighth largest cable operator that scored rock bottom in this year’s Consumer Reports cable survey.

The complaints keep on piling up: unfulfilled service calls, uninformed customer service agents in the Philippines, poor quality service, and in one case, a supervisor more concerned about how a customer obtained her direct number than actually resolving the customer’s problems.

The fallout from irritated customers now extends beyond horror stories from some of the company’s 1.3 million customers in 22 states — it’s now costing the company rejection of extended franchise renewal agreements in some communities, and plenty of bad press.

Boone County, Illinois

Boone County, Illinois

Last spring, Boone County began discussions about renewing a cable franchise Mediacom had with the county for some 20 years.  Public meetings to discuss the renewal brought throngs of customers annoyed with Mediacom’s poor performance.

The Rockford Register-Star took up the story:

Candlewick Lake resident Roger McGee Sr. has been experiencing difficulties with his cable company since he moved to the gated community two years ago.

McGee, a former Huntley resident, said he’s spent more time trying to get resolutions to his cable and Internet issues than he ever imagined was possible. “Every single step of the way the customer service was horrible and mismanaged,” he said Wednesday. “I talked to Mediacom more than I talked to my wife in those three months.”

Mediacom representatives characterized the complaints as mere aberrations and suggested isolated complaints could be resolved without impacting the company’s franchise renewal.  But additional public meetings held later that summer illustrated Mediacom had problems in the north-central Illinois region where it provided service.  The Register-Star reported:

George Chorvat has experienced countless issues with Mediacom Communications, and he’s looking for relief. The Poplar Grove resident isn’t alone.

Chorvat attended the county’s second cable hearing Tuesday at the Belvidere Township Building along with roughly 20 residents to speak out about service woes and to provide input on the county’s nonexclusive franchise renewal, which is in the negotiation phase.

“You took away half of our movie channels and said it was OK because we had On Demand, but we do not and we’re paying the same price,” Chorvat said.

His challenge of the offerings provided by Mediacom was one of several problems residents said they face.

Some residents detailed months of waiting for maintenance cable wires to be buried underground. Others told of weeks without phone service or waiting at home for technicians to arrive for scheduled appointments only to find the cable company had canceled them.

Late last month, Boone County granted the cable company a one-year extension of its cable franchise, citing customer complaints as the primary reason for the short-term extension.  In addition, the county will hold a series of public meetings at three, six, and nine month intervals over the coming year to check on customer service concerns and how Mediacom responds to them before considering a five year franchise extension.

The interim extension also keeps Mediacom from using telecom-friendly legislation to obtain a franchise from the Illinois state government, bypassing local officials.  Statewide franchising in Illinois was the brainchild of AT&T, which wants to expand U-verse without having to answer to local communities.  Mediacom has the ability to hop on board the same provisions to avoid local control if local governments refuse to extend a franchise agreement.

“We need to make sure we keep some county control here,” board member Karl Johnson told the newspaper in February. “No matter how big we think we are here, they’re a whole lot bigger when they come through downstate.”

Johnson heard several complaints from Mediacom customers about missed appointments, incomplete wire maintenance, and some who went weeks without Mediacom phone or broadband service.

Springfield, Missouri

Springfield, Missouri

Cable customers who experience problems expect answers when calling customer service, but Springfield resident Nancy Walker found herself empty-handed after speaking with a Mediacom representative thousands of miles away — in the Philippines.

“I am really upset,” Walker told the Springfield News-Leader in February. “I want a local number I can call, not the Philippines.”

She finally resorted to calling the office number of a friend who once worked for Mediacom before that friend passed away.  A supervisor was more concerned about how she obtained that number than helping her, Walker said.

Mediacom disconnected its local call center about three years ago, and company officials admitted they route calls to call centers, including one in the Philippines.  Larry Peterson, regional vice president of Mediacom, said the company dropped the ball on Ms. Walker, finding the customer service she received “unacceptable.”  Peterson handed Walker his business card and promised any issues would be resolved.

For customers who do not have Peterson’s personal office number, many just have to take their chances.

Springfield’s Cable TV Advisory Commission, which actually holds almost no real power over Mediacom, thought the company could do better.

Commission member Rita Silic urged the cable company to find a way to route dissatisfied customer calls back to a local Mediacom representative.

Dave Iseman, editorial page editor of the News-Leader, opined Mediacom needs “a full-fledged apologetic jingle. And it better be a long one, considering the waiting time that can be necessary to phone in a complaint.”

Burlington, Iowa

The fact Mediacom rated near the bottom in Consumer Reports‘ latest ranking of telecommunications companies — 24th among 27 Internet providers, 15th among 16 television service providers and dead last among 23 telephone providers — didn’t escape the attention of Burlington-based newspaper The Hawk Eye.  The newspaper noticed local complaints were continuing to pour in about service quality and trouble reaching customer service.

Columnist Don Henry even wrote about his own personal experiences with Mediacom in December:

Mediacom last month took away the religious programming my wife enjoys: I guess she shouldn’t complain.

They also poked out one of C-SPAN’s eyes on Congress. The Nancy Pelosi House of Horrors remains fit for family viewing, but not the Senate Shell Game. No explanation of why and I watched both — but I’m not complaining.

We were satisfied with “expanded basic” — but Mediacom decided to improve our viewing experience by removing four channels and making us rent some new box gadget to see them, plus a few we didn’t need.

Lest you complain, you get one box free … until they automatically raise your bill a year later. Conservatives think God trumps Harry Reid, so our box went into Sandy’s exercise room. She’s not complaining.

Henry’s problems only got worse from there, including e-mail disruptions and other service outages.  He did what most customers do when their service is on the fritz — he called the cable company.  That turned out to be quite an adventure:

“For e-mail problems, press 1; otherwise, stay on the line.”

I pressed 1.

“For e-mail problems, press 1; otherwise, stay on the line.”

Burlington, Iowa

I pressed 1.

“For e-mail problems, press 1; otherwise, stay on the line.”

After maybe 10 replays, I disobeyed. I stayed on the line … and waited … and waited … until my patience wore thin enough to drive to the Mediacom office on Division Street. I talked to a rep who seemed blissfully unaware of any e-mail problems. It’s been over a day and I’m far from alone, I said.

“Well, nobody’s told us.”

Could you ask about it?

“I can’t do that.”

Could you at least adjust my bill for the lost service?

“I don’t know of that ever being done.”

You used to, when I could get someone by phone.

“Then you’ll have to call.”

Henry’s column struck a nerve among local residents, who flooded the newspaper with comments about their own horror stories, ranging from pesky squirrels chewing through fiber optic cables to tsunamis of spam after the company “improved” its e-mail service.

Phyllis Peters, communications director for Mediacom, admitted the company could improve its customer service, but decided to devote most of her attention to taking issue with… Consumer Reports‘ survey.  Peters wants customers to know Mediacom isn’t dead last in the country because the magazine didn’t ask customers about every cable provider in the United States.  She’s certain there are worse examples out there:

Peters said one reason the survey might rate Mediacom so poorly is because of the company’s ambition. Mediacom is the nation’s eighth largest cable company, and focuses on providing cable coverage to non-metropolitan areas. Expanding service over a large area means more fiberoptic cable and servers that must be monitored.

Peters said the top-ranking cable company Wow, which had top scores on almost every attribute in the ratings, serves a much smaller, consolidated area than Mediacom. Wow is the 12th largest cable provider in the country, and services parts of Illinois, Michigan, Ohio and Indiana. Consumer Reports was enthusiastic about the company, but acknowledged its small size.

“We would like to be higher in the rankings. We’ve put a lot of effort into customer service, and we did add a lot of calling staff,” Peters said. “Those things have moved forward in a significant way, and it takes a while for perception to change.”

It may not always be easy to get a Mediacom representative on the phone, but the company offers the fastest Internet service in Burlington, she said. The company offers a standard download speed of 12 megabytes per second, and that service can be upgraded to 20 megabytes per second for a higher price.

Competition for Burlington residents’ broadband needs come mostly from Qwest, which offers most customers 1.2 Mbps DSL service, although the company can provide up to 7 Mbps in selected neighborhoods.

Max Phillips, president of the western Iowa division of Qwest, told The Hawk Eye he doesn’t know if the company will be able to provide higher speeds to Burlington in the near future.

“We have a long-term plan to bring higher speeds, but our business is constrained by the government model,” he said, whatever that is supposed to mean.

Carthage, Illinois

Carthage, Illinois

Mediacom has been out of luck securing a franchise renewal in Carthage because of ongoing customer complaints about the quality of service being provided to Hancock County residents.

Carthage has been without a Mediacom franchise agreement since the old one expired last June.

A proposed renewal was shot down by the city after a vote failed to approve it, citing reception complaints.  Mediacom has been asking the city for a franchise renewal ever since, but the city has resorted to four-month extensions, waiting to see what service improvements were forthcoming in the interim.

Mediacom installed new hardware in the community, which it felt would improve reception, and city officials were hopeful the noted drop in complaints reaching them was an indication of that.

But in February, complaints began arriving at the city’s doorstep once again.

Carthage Mayor Jim Nightingale said he heard two complaints right after the city council offered the latest extension.

Now he’s withdrawn the offer.

Mediacom can always appeal to the state of Illinois to seek a new franchise under statewide franchise laws, but discussions with city officials are continuing for now.

Prior Lake, Minnesota

Prior Lake, Minnesota

Communities looking for competitive alternatives to Mediacom usually find phone companies who refuse to offer video service in Mediacom service areas, because the cable company typically chooses smaller communities where such “telco-TV” projects don’t meet the minimum Return On Investment requirements necessary to build them.  Some communities served by independent phone companies or are lucky enough to find a willing fiber-to-the-home provider are in better shape, unless the cable company files suit to stop such projects from moving forward.

The community of Prior Lake, twenty miles outside of Minneapolis, and its 16,000 residents are a case in point.

Last fall, Mediacom filed suit against Integra Telecom, a Portland, Oregon-based provider of competitive voice, broadband, and television service that won a franchise agreement to provide “telco-TV” in Prior Lake and nearby communities within its existing service area.

The suit claims city officials discriminated against Mediacom by not compelling Integra to meet the same terms and conditions Mediacom agreed to in a 1999 franchise agreement. Specifically, Mediacom wants Integra held to the same requirement it agreed to in defining its service area.  Because Integra is not planning on matching Mediacom’s service area house by house, Mediacom claims they are in violation of Minnesota law.

That suit is awaiting a hearing in the state Court of Appeals expected to begin this month.

The dispute between Mediacom and the city has led one state senator to write legislation clarifying the existing cable franchise laws in Minnesota.

Senator Scott Dibble (DFL-Minneapolis), has introduced Senate File 2535.  The bill would allow telephone companies to provide competitive service within their natural service areas, instead of being required to match incumbent cable operator coverage areas.  For example, a cable company might serve a broader area where multiple phone companies provide service.  Under current state law, competing phone companies could be required to wire every area where the incumbent cable company provides service, even inside other phone company’s service areas.  Senate File 2535 recognizes the current telephone company service area boundaries as acceptable enough to proceed with a video franchise agreement.

Integra's service area in the Minneapolis/St. Paul region, which is not identical to Mediacom's service area, is one point of contention between Mediacom and Prior Lake officials

Prior Lake City Manager Frank Boyles and Senator Claire Robling (R-Jordan), both testified in favor of the bill at a recent hearing held by the state Senate Committee on Energy, Utilities, Technology and Communications. The bill was approved unanimously and now moves to the State and Local Government Operations and Oversight Committee, of which Robling is a member.

The League of Minnesota Cities is also calling on its members and the public to support SF2535 which could speed competition across Minnesota.

Text of Senate Bill 2535:

A bill for an act relating to cable communications; clarifying requirements for the granting of additional cable franchises; amending Minnesota Statutes 2008, section 238.08, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. Minnesota Statutes 2008, section 238.08, subdivision 1, is amended to read:

Subdivision 1. Requirement; conditions.

(a) A municipality shall require a franchise or extension permit of any cable communications system providing service within the municipality.

(b) No municipality shall grant an additional franchise for cable service for an area included in an existing franchise on terms and conditions more favorable or less burdensome than those in the existing franchise pertaining to: (1) the area served; (2) public, educational, or governmental access requirements; or (3) franchise fees. The provisions of this paragraph shall not apply when the area in which the additional franchise is being sought is not actually being served by any existing cable communications system holding a franchise for the area. Nothing in this paragraph prevents a municipality from imposing additional terms and conditions on any additional franchises.

(c) An area for an additional cable franchise is not more favorable or less burdensome if the franchisee is a telephone company, as defined in section 237.01, subdivision 7, and the area of the franchise is no less than the area within the municipality in which the telephone company offers local exchange telephone service. This paragraph is in addition to and not a limit to the authority of a municipality to grant an additional franchise for cable service.

Rep. Eric Massa (D-NY) is expected to resign his seat Monday

Rep. Eric Massa (D-New York), author of the Broadband Internet Fairness Act (HR 2902) — legislation that would ban Internet Overcharging, announced he will resign his office Monday.

In a fast-moving series of events, Massa first announced he would not seek re-election because of health reasons — the congressman faces a renewed battle with cancer, but allegations of ethical violations also surfaced earlier this week which have gotten national news coverage.

Massa is a first term congressman in New York’s 29th Congressional district, which has traditionally elected Republican candidates to office.  But as the national Republican party has trended further to the right, northeastern Republicans have become an endangered species in Congress.  Former Rep. Randy Kuhl only held onto the seat for two terms before being defeated by Massa in 2008.  Kuhl himself replaced retired congressman Amo Houghton, a long-serving moderate Republican whose voting record often split with the national Republican party on major issues.

Massa’s decision not to run for re-election surprised voters in his district, which runs from suburban Rochester to the Pennsylvania border along the southern tier.  Friday’s sudden announcement he’ll also resign his office effective Monday shocked voters and started a scramble for who might assume Massa’s seat upon his resignation.

The loss of Eric Massa to the Stop the Cap! cause is a concern for broadband consumers.  Massa stepped up to protect consumers from an Internet Overcharging experiment proposed last April by Time Warner Cable, which serves most of his district.  Massa immediately blasted the cable company’s plan to test usage-based billing on residential customers in the Rochester area, which is the only major city in New York State not served by Verizon and its expanding fiber to the home FiOS system.

Massa’s proposed legislation would have banned such schemes unless a company could demonstrate a clear financial need to adopt consumption billing and usage limits.

Thankfully, New York senator Chuck Schumer (D-NY) remains in office, and is the only senator to protest Time Warner Cable’s experiment, and helped end it, not just for residents of western New York, but for residents of Texas and North Carolina as well.

As to the swirling of allegations surrounding Massa, I have no interest in expanding on them here.  You can get a detailed review of the congressman’s views on these issues by listening to a 90-minute radio show aired today on a WKPQ-FM in Hornell, New York.  Today’s show will probably break news because Massa expands in great detail what’s behind the allegations and the reasons for his retirement.

Eric Massa’s regular Sunday show on WKPQ-FM Hornell, NY today discussed his decision to resign his office in great detail. (90 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

As for his replacement, a number of Democrats from both the southern tier and Monroe County/Rochester are considering entering the race.  Massa’s already-campaigning Republican opponent, former Corning Mayor Tom Reed remains in the race.  The Republican county supervisor for Monroe County, Maggie Brooks, is also considering a run.  But so is the former Congressman Randy Kuhl.  “Randy the Dandy” would be the worst possible option.  His undistinguished record and contempt for his constituents makes my skin crawl.  In his last term, Kuhl refused to hold open town hall meetings, instead shepherding constituents in for ‘five minutes with Randy’ where someone took notes and another escorted you out when your time was up.  Nobody should have bothered to take notes — his ongoing lack of concern about what voters in his district thought helped him lose his seat in the first place.  His lack-of-listening tour would fit perfectly with certain cable companies who don’t listen to their customers.  Hopefully, voters will not contemplate a return of Randy Kuhl.  Four years was more than enough.

We’ll be looking for other members of Congress to take up where Eric Massa left off.  I would like to thank Congressman Massa for his hard work on behalf of our cause, as well as helping make a difference on so many other matters important to the voters in his district.  I wish him good health and best wishes.

Several television stations announced Rep. Massa’s decision to resign his office Friday in “breaking news” headlines.  This clip has three reports from WETM-TV Elmira, WHAM-TV Rochester, and WENY-TV Corning. (6 minutes)

Residents in the 29th congressional district react to Rep. Massa’s resignation announcement, and local politicians jockey for position to potentially run for Massa’s seat.  Three reports are included from WHAM-TV Rochester, WROC-TV Rochester, and WENY-TV Corning. (6 minutes)

Stop the Cap! has received several requests for Sen. Al Franken’s (D-Minnesota) comments during the Senate hearing in early February reviewing the proposed merger.  So here, for your viewing pleasure, is the portion of the hearing where Franken comes out swinging in opposition to the ongoing consolidation of media companies in America. (February 4th – 14 minutes)

[Stop the Cap! will be closely following Google's experimental gigabit fiber-optic broadband network. We'll be bringing regular updates about the communities applying, the strategies they are using to attract Google's attention, what the competition thinks, and the impact of the project on American broadband.  You can read our earlier community profiles, and news about the project here.]

Topeka wants Google’s fiber experiment so badly, it is willing to rename itself to Google, Kansas — at least for the month of March, anyway.

Mayor Bill Bunten signed a proclamation Monday rechristening the city “Google, Kansas — the capital city of fiber optics.”

It’s all part of a well-organized effort to bring Google’s fiber optics to 122,000 residents living and working in the capital city of Kansas.

Think Big Topeka, a local group started by three people just a few weeks ago, was launched to promote Topeka as a candidate city.  It includes links to e-mail elected officials, complete Google’s online nomination form, and coordinate upcoming events.

It has since collected more than 10,000 Facebook fans and has gotten a big push from most of the local broadcast and print media, which have run more than a dozen stories about the group and the petition to nominate Topeka.  Several stations even have prominent links back to Think Big Topeka’s website.  The city government is also an enthusiastic supporter of the experimental project.

Think Big Topeka knows how to get media attention.  The group recently started running “flash mobs” — events where hundreds of people silently promote the project by suddenly stripping off jackets to uncover T-shirts promoting the Think Big Topeka campaign.  Engineering events that are “made for television” guarantee plenty of attention on the evening news.

The Google “Think Big With a Gig” experiment has excited communities from coast to coast, convinced advanced fiber optic networks will bring new jobs, high technology business, and improved broadband service for both consumers and area businesses.  Many hope the competition will also finally lower prices.

Incumbent providers Cox Cable and AT&T are the largest local providers.

Cox currently offers three broadband tiers — Essential 3 Mbps/384 kbps ($29.99), Preferred 12/1.5 Mbps ($46.99), and Premier 25/2 Mbps ($61.99).

Cox Cable, when asked by KSNT-TV news what they thought about the project brought a response from Kelly Zega, a representative from Cox Communications: “We have always believed competition in the marketplace is a healthy thing, as it leads us all to improve and innovate in ways that ultimately benefit consumers.”

AT&T offers U-verse in selected areas of Topeka, but most areas are still served by AT&T’s traditional DSL service which offers considerably slower speeds — Basic 768/384 kbps ($19.95), Express 1.5 Mbps/384 kbps ($24.95), Pro 3 Mbps/512 kbps ($24.95), or Elite 6 Mbps/768 kbps ($24.95).  (Note the prices for Express, Pro, and Elite are identical — apparently which plan you get depends on what actual speeds AT&T is capable of delivering to your home.)

If Google can deliver faster speeds and lower prices, it’s no surprise thousands of Topekans are excited.

The Topeka Capital-Journal, the community’s daily newspaper, is also promoting the project on its editorial pages:

This excitement is being created by a lot of people who see opportunities to help the city grow and become an even better place to live, and are determined to do everything they can to make it happen.

Evidence of their enthusiasm and dedication was on display Thursday evening when about 500 of them gathered at the Ramada Hotel and Convention Center to talk about plans to revitalize downtown Topeka. Granted, the audience consisted of two different groups, but each had visions that, if fulfilled, would mean great things for our city.

We’ve written recently in support of Think Big Topeka, a group trying to convince Google that Topeka is the place to test an ultrafast Internet connection that promises to provide Internet service about 100 times faster than anything we are working with now. The effort has attracted about 7,875 supporters in a very short time and some of them turned out for Thursday’s meeting, sponsored by Heartland Visioning, to encourage others to jump on the bandwagon.

Supporters of the Google project and those interested in revitalizing downtown meshed during the evening as the discussion flowed between both issues.

Such a confluence of people and organizations with visions, dreams or plans — call them what you will — is a healthy, and welcome, development itself that bodes well for the city’s future. Most good things start with someone’s vision or dream, and they aren’t to be scoffed at or dismissed out of hand.

Think Big Topeka has more than 10,000 fans on its Facebook page

Dreams can come true… if a city actually applies.  The city of Topeka will.

“The city of Topeka welcomes the opportunity to participate in this unique technological experiment, if selected as Google trial community, to benefit our citizens in providing all opportunities to access Internet technologies,” city officials wrote on the city’s Facebook page.

The city’s information technology department has been tasked with working on what they characterized as a very long and detailed application.  Mark Biswell, IT director for Topeka city government, said his department has been hard at work on the application from the moment Google announced the project.

Shawnee county, which includes Topeka, is conducting an online  survey running until Saturday asking residents about their interest in the Google fiber project.  They are seeking input on what kinds of broadband speeds residents actually obtain, instead of relying on marketing promises made by the incumbent providers.  They also want to learn how satisfied residents are with Cox and AT&T.

For Topeka, a city coincidentally working on its own revitalization plan for downtown development, the prospect of Google gigabit fiber could be the crown jewel of a complete city makeover.

KTKA Topeka aired three reports about the Google fiber experiment, including an interview with one of the founders of the Think Big Topeka group. (3 minutes)

http://www.phillipdampier.com/video/WIBW Topeka Group Wants Google's Blazingly-Fast Internet To Come To Topeka 2-17-10.flv

WIBW Topeka has these two reports featuring the Think Big Topeka group and how the city government is involved in the project.  (4 minutes)

http://www.phillipdampier.com/video/KSNT Topeka City Renames Itself Google for March 3-1-10.flv

KSNT Topeka has several reports about the organizing effort, a “flash mob” and Topeka city government’s strong belief in the project.  (6 minutes)

http://www.phillipdampier.com/video/Think Big Topeka.flv

Finally, Think Big Topeka has some of its own videos on offer, answering residents’ questions and cheerleading the effort to bring better broadband to Topeka.  (3 minutes)

Across AT&T’s service areas, the company has lobbied heavily for telecommunications deregulation that, among other things, makes the printing and distribution of telephone directories optional.  In Alabama, AT&T has filed a request with the state Public Service Commission to end automatic delivery of residential listings, the so-called “White Pages,” to reduce costs.

Because telephone companies earn substantial revenue from advertising in the business listings, the “Yellow Pages” will continue to be printed and dropped on doorsteps across Alabama once a year, whether  customers ask for them or not.

AT&T’s filing with the Alabama PSC explains the reasons for stopping the printed residential listings:

The traditional residential white page telephone book no longer provides the same utility it once did. Based on trials AT&T has recently conducted, it appears that the vast majority of customers neither need nor use these often quite large, bound paper directories delivered to their homes each year. AT&T Alabama thus proposes a directory delivery trial whereby AT&T Alabama would initially deliver the AT&T Real Yellow Pages directory in the Mobile market.

In addition to traditional Yellow Pages listings, that directory would also contain the business white page listings, the Government listings, the customer guide information, and other information required under the Commission’s Rules. Also included will be materials informing customers they can receive a printed white pages directory containing residential listings, which will be mailed at no cost to the customer. Customers tend to find their residential listings in today’s marketplace in a manner other than by using the printed white page directories, so publishing largely unused residential white page books is an inefficient use of environmental resources.

If the proposal is approved, AT&T will offer Alabama residents the option of receiving a printed version of the White Pages or a CD-ROM containing the listings mailed to them at no charge.

AT&T’s telephone directories are already online at AT&T’s RealPagesLive website.

The PSC is expected to consider the matter later today.

Oregon's telephone company service areas

Frontier Communications has won approval to assume control of telephone lines serving 310,000 Oregonians.

The Oregon Public Utilities Commission Friday unanimously approved the transfer of service from Verizon to Frontier as part of a 14-state transaction.

“First and foremost we want to ensure that customers are not harmed by this transaction.  That’s why we are requiring more than 50 conditions, all aimed at making sure customers are not harmed by this sale,” Chairman Lee Beyer said. “In addition, we are requiring Frontier Communications to spend $25 million on expanding high-speed internet access to its Oregon customers by July 2013.”

In return for approval, Frontier agreed to PUC demands for customer service protections:

• A commitment that Frontier spend at least $25 million to expand high-speed broadband in Oregon by July 2013;
• No changes in “commission-regulated” retail service plans for at least three years;
• Costs of the transition must not be paid by customers in the form of rate increases;
• 90-day window to change long distance carrier without any fees;
• An independent audit, paid for by Verizon, to ensure Frontier can handle service for those customers affected by the deal;
• An opt-out provision letting Oregon’s FiOS subscribers terminate their contracts without penalty if Frontier reduces Internet speeds or drops any of its television channels.

What is missing from Oregon’s agreement?

• A prohibition of Internet Overcharging schemes like Frontier’s 5 gigabyte “acceptable use” policy that potentially limits customer’s broadband use.  Expanded broadband that customers can only use for basic web browsing and e-mail, without fear of exceeding the limit, indefinitely punishes rural Oregonians with no broadband alternatives;
• A specific definition of what constitutes “broadband” speeds.  Frontier can continue to deliver the 1-3 Mbps it routinely provides to its less urban service areas.  While better than nothing, Oregon regulators could have used the deal as leverage to win 21st century broadband speeds from Frontier, not yesterday’s ‘barely broadband;’
• Fines and penalties that will punish a provider that does not invest appropriately in high service standards to provide quality service, and a trigger to permit automatic cancellation of operating certificates should Frontier go bankrupt.

Too many of these deals offer upsides for Wall Street and little benefit to consumers, especially those dependent on their landline phone company for basic communications services.  By forcing requirements that prove costly for a provider to renege on, investors will understand their gains will only happen when they are assured Frontier is doing right by their customers, as well as their shareholders.

Oregon is the sixth state to approve the sale.

Frontier currently serves only 12,000 customers in the state, mostly in southwest Oregon, including the communities of Azalea, Canyonville, Cave Junction, Days Creek, Glendale, Myrtle Creek, O’Brien, Riddle, Selma, and Wolf Creek.

The company’s new customers will come mostly from Washington County, east Multnomah County, and from several pockets of customers in the northwestern part of the state.  Oregon’s largest telephone provider is Qwest Communications, but the state has numerous smaller independent providers as well.