Although not too far from Winston-Salem and Greensboro, Caswell County has a population of just over 23,000 people

In a painful display of callous disregard for the broadband needs of rural North Carolina, where half the state’s population lives, nine Republicans and two Democrats on the House Public Utilities committee voted down a bill to deliver service to 60 percent of Caswell County that currently goes without.

HB2067, introduced by Rep. Bill Faison (D-Orange/Caswell) would have allowed the rural county to provide broadband service to unserved residents and businesses.  What Rep. Faison did manage to put in HB2067 was initiative towards 21st Century technology.  The bill would have authorized Caswell County to install better technology, both up and down, where Centurylink offers slow DSL as the only option.  In introducing the bill, Faison explained that recent broadband data showed only 40 percent of Caswell County had access to broadband.

Already suffering from the exodus of textile jobs that used to provide an economic base for the area, the failure to obtain broadband has proven disastrous to the work of the county’s 21st Century Group, trying to restore Caswell County’s economy with a higher-tech future.  Six years of work was blocked by CenturyLink — the local phone company and 11 legislators, who told residents they don’t deserve anything better than they already have (which is often nothing.)

Without HB2067, Caswell County cannot even apply for federal stimulus broadband grant funds because the state law doesn’t provide specific authority to deliver the service.  Faison’s bill would correct that oversight and encourage public/private partnerships to get busy bringing broadband to the region.

CenturyLink and its top lobbyist Steve Brewer would hear none of it — Goliath was afraid that David would install better technology and force Centurylink to upgrade or hit the road.

Brewer was given more than half the available time for discussion about the proposed bill to fill the ears of committee members with half-truths.

CenturyLink, Brewer claimed, was more than willing to work with the county to provide the kind of speed its business park needed, yet failed to mention its long history of refusing to expand service to unserved areas.  Brewer’s claim that 70 percent of Caswell County is served by CenturyLink doesn’t mean the company offers broadband to all of those customers.  His further claim that 90 percent of those areas include equipment that is “DSL capable” also doesn’t mean those areas are providing the service today, just that they could… someday.  Many factors can disqualify a potential customer from getting DSL service, especially in rural areas where line quality is not always the best.

Bartlett Yancey House Restaurant and Gallery, a famous landmark in Caswell County.

Faison sought to explore exactly what Brewer defined as “broadband” service.  Brewer claimed DSL service offered anywhere from “1.5 to 6Mbps,” admitting speeds decline with distance and is untenable more than three miles from the telephone company switch facility.

Of course, Caswell County’s large rural expanse puts many of the unserved beyond the maximum distance DSL can work without additional equipment.  Many rural areas that can get DSL are typically offered between 768kbps-3Mbps service.  Caswell County is so rural, it met the Rural Utility Service’s (RUS) classic definition of an underserved community.  That allowed the county to technically qualify for first round federal broadband grant funding.

Unfortunately, legislators are not always as informed as they need to be to recognize statements riddled with loopholes and asterisks.

For instance, Rep. Daniel McComas (R-New Hanover) asked whether he could get high speed Internet over a phone line.  Although Brewer answered yes, what qualifies as “high speed” was left unanswered, as was exactly how many Caswell County residents requested DSL service, only to be refused by CenturyLink.  Yes, you can get DSL broadband over a phone line — but that doesn’t mean you will in Caswell County.

“The only definition of high speed Internet in North Carolina is from a statute from 10 years ago,” Faison noted. “You would have to admit that what was high speed Internet 10 years ago is not high speed Internet today.”

Just as the call for a vote was made, Brewer delivered an uninvited closing argument — probably unnecessary since no consumers were invited to speak on the issue.  If you don’t have broadband in Caswell County, 11 legislators on that committee weren’t interested in hearing from you anyway.

Brewer said the bill was completely unnecessary, because “federal broadband grants were no longer available,” and besides, it was unfair competition for the county to deliver broadband service better than what CenturyLink provides.  Of course, broadband grants -are- still available from the RUS, and few on the committee probably understood the irony of a phone company demanding that Caswell County not be allowed to deliver quality broadband service CenturyLink refuses to provide.

The substitute Committee bill would have protected CenturyLink from their fears of "unfair" competition by not allowing the county to build out broadband service where CenturyLink already provides it if it was not better service, but the company remained adamantly opposed to the county providing broadband service even in areas where they refuse to deliver it themselves for fear they would have to offer real broadband to Caswell County.

CenturyLink also claimed the county would have ‘secret insider information’ about CenturyLink’s every move through the permit process.  The glacial pace of the phone company’s broadband expansion is hardly a secret to the residents who live there.  Besides, permits are not required for the phone company to work in their own right-of-way.  Unlike cities who control the rights of way in their corporate limits, the state owns and controls the rights of way going through the unincorporated parts of the County.  Brewer’s comments were intended to scare legislators, not inform them.  It was a flat out lie.

The vote illustrates the disconnect many in the state legislature have about broadband.  Most of those in favor of the of the bill were Democrats mostly from rural sections of the state.  Two of the “no” votes came from Democrats in urban Mecklenburg County, which includes the city of Charlotte.  Representatives Beverly Earle and Becky Carney already have several choices for broadband service where they live.  Shame on them for condemning their rural neighbors in the north to a broadband backwater.

Mecklenburg County legislators were sure in a big hurry a few years back to do the bidding of AT&T, opening the doors to their kind of competition with statewide video franchising.  U-verse, which is available in parts of Charlotte, was supposed to put a stop the relentless rate increases and deliver competition.  So far, they’ve managed to sign up around 13,000 residents out of a potential 4 million plus in North Carolina, and the rate hikes just keep on coming.

The Republicans on the committee voted lock-step against the bill, even those from rural regions of the state.  Most of them are grateful recipients of big telecom money or are not running for re-election.  None of them can be bothered to ponder better broadband for their constituents unless it comes from a company cutting them a campaign contribution check.

When the vote was over, AT&T’s lobbyist Herb Crenshaw warmly shook McComas’ hand and congratulated him for a job well done. AT&T’s next check to McComas’ campaign fund will likely be bigger than the $500 he collected during the first quarter of this year.

The hit job on the broadband needs of rural Caswell County was complete.

The Members of the House Public Utilities Committee Voting Against Better Broadband for Caswell County & The Reasons Why
…and these amounts are just from the 1st quarter of 2010!

Rep. Harold J. Brubaker (R-Randolph) — Big Bucks Brubaker ran to the bank with $4,000 from AT&T, $4,000 from CenturyLink, $2,000 from Time Warner Cable, and $2,000 from Verizon.

Rep. Hugh Blackwell (R-Burke) — Blackwell accepted $500 from AT&T and $250 from Time Warner Cable.

Rep. Becky Carney (D–Mecklenburg) — AT&T and Time Warner Cable both cut checks for $500 each for Ms. Carney.

Rep. Beverly Earle (D-Mecklenburg) — She’s nice at half the price, with a grateful CenturyLink cutting a check for $250.

Rep. W. Robert Grady (R-Onslow) — Zippo.  He’s not running for re-election.

Rep. Jim Gulley (R-Mecklenburg) — Nada.  He’s not running again either.

Rep. Julia Howard (R–Davie/Iredell) — She gets around.  AT&T found her $500, CenturyLink provided a cool $2,000, and Time Warner Cable did even better with $2,500.

Rep. Linda Johnson (R-Cabarrus) — A double mint.  AT&T $500, Time Warner Cable $500.

Rep. Daniel McComas (R-New Hanover) — AT&T gave him $500, Time Warner Cable doubled that with $1,000.

Rep. Tim Moore (R-Cleveland) — Walking around money — AT&T $500, Time Warner Cable $500.

Rep. Wil Neumann (R-Gaston) — AT&T $500, but thanks to this year’s hefty rate hike, Time Warner Cable could afford $1,000 for Mr. Neumann.

Representatives Who Supported Rural North Carolina’s Need for Better Broadband, Voting For HB2067

Rep. Bill Faison (D-Orange, Caswell)

Rep. Kelly Alexander, Jr. (D–Mecklenburg)

Rep. Angela Bryant (D–Nash, Halifax)

Rep. Pricey Harrison (D-Guilford)

Rep. Marvin Lucas (D-Cumberland)

Rep. Nelson Cole (D-Rockingham)

Totals for 2010 (so far) for Telecom Contributions in the North Carolina General Assembly

AT&T $72,740

CenturyLink $51,750

Time Warner Cable $20,450

Verizon $10,500

(All figures are from the North Carolina State Board of Elections website, from candidates filings.)

North Carolina Legislature

We collectively sighed last Wednesday when the Senate Finance Committee temporarily pulled S1209, but the victory is short-lived.  Sources tell us S1209 is scheduled to return this Tuesday, one day after the long Memorial Day weekend.

We are not happy with some of the rumors that have been circulating around the Legislative Building in Raleigh.  One suggests S1209 will be modified into a one year, renewable moratorium on municipal broadband while a joint task force ponders questions about financing of municipal broadband, broadband adoption and speed, and overall competition in North Carolina.  Without a clear sunset provision, the legislature can renew the moratorium indefinitely, assuring incumbent phone and cable companies of a continued easy ride into our wallets.

Much has also been said by Sen. Clodfelter regarding the legality of municipal broadband in North Carolina.  Some of his earlier comments suggest he’d be a proponent for a moratorium while the state legislature thrashes out the legal questions.

But the courts have already effectively dealt with this question and handed victory to municipalities.  Why bother with a moratorium when in 2005, Laurinburg, North Carolina won its court battle against big telecom companies.  The judge ruled:

“Laurinburg’s network is run over fiber optic “wires or cable,” providing a “system” for “transmit[ting]” and “receiv[ing]” electronic signals capable of being converted to “audio” and/or “video” streams of information. See N.C. Gen. Stat. § 160A-319(b). We believe this fits within a broad construction of the definition of a CTS. Therefore, we hold that Laurinburg is acting within its municipal authority to run its network, and was not acting ultra vires in contracting with School Link to provide the network’s ISP service.”

Doesn’t the legislature have better things to do than to spend all of this valuable time doing work for big phone and cable companies?

We need you to again write and call your legislators. We have been told by numerous sources that your input has been very effective in pushing back S1209.  The more North Carolina consumers speak out against this anti-consumer bill, the less likely it will ever become law.

Here are the points you need to raise in your next letter or phone call:

1. Why is the legislature still spending time on this unnecessary, anti-consumer legislation?  S1209 is wanted by large phone and cable companies.  You want your town or city to have every option open to deliver better service if a consensus is reached for it in your community.  The current system already provides effective checks and balances.  We don’t need S1209.
2. Studying broadband issues is fine, but placing a moratorium on municipal broadband projects in the meantime is completely unacceptable.
3. Corning’s plant in Hickory, North Carolina produces 40 percent of the world’s supply of fiber optic cable.  Passing S1209 impedes fiber projects in North Carolina, hurting our own workers and state economy.
4. North Carolina needs all the broadband expansion it can get.  We are ranked 41st out of 50 states.  Passing S1209 preserves mediocre broadband service in our state indefinitely.

For some of you, this will be your third or fourth call or e-mail.  Perhaps it’s time to remind legislators you are becoming increasingly concerned that measures like S1209 continue to be debated.  While Time Warner Cable and CenturyLink/Embarq’s legislative priorities continue to get plenty of time and attention in Raleigh, they don’t get a vote in the next election.  Remind them you do, and your continued support hinges on whether you can feel confident members represents your interests, not those of big cable and phone companies.

Remember the three rules when contacting your legislators:

• Be polite.
• Be persuasive.
• Be persistent.

Well-informed constituents who can defeat industry talking points represents the nuclear option against bad telecommunications legislation.

Now get on the phones and e-mail and get busy.  Remember — one e-mail message per address.  No carbon copies!

Here is the list:

Senator Hoyle's legislation lays the foundation for cable and phone companies to spend hundreds of thousands of subscriber dollars to mail smear campaign pieces like this one from Comcast.

(This piece is written by Jay Ovittore and Phillip Dampier.)

The good news is that all the pushback on an all-out-moratorium on municipal broadband was successful and Senator David Hoyle (D-Gaston) withdrew the idea.  The bad news is he had an even worse idea to replace it.

Hoyle Wednesday unveiled a new draft bill that hopelessly ties up municipal broadband projects into knots of red tape that, if passed into law, will bury municipal broadband projects in North Carolina indefinitely.

Hoyle sprung his telecom-industry-friendly legislation on the public after getting plenty of input and encouragement from the state’s cable and phone companies who already knew what was in it because they helped craft it.

For a retiring state senator who doesn’t have to worry about the next election, what better parting gift can you give to your friends in the cable and phone industry than a bill that preserves the comfortable duopoly they’ve  enjoyed for years.

Hoyle and those supporting the legislation will argue their bill doesn’t ban municipal broadband — it simply places conditions on such projects before they can go forward.  But what are those conditions?

Section One of the draft bill requires local governments to get funding for “external communications services” (ie. municipal broadband) by way of a General Obligation Bond (a GO Bond).  In North Carolina, that requires a taxpayer-funded referendum to be held for public input at the next election.

On the surface, getting public approval for municipal broadband isn’t a bad idea — no local government official expecting to win re-election would ever proceed on such projects without voter support.  But this requirement also gives plenty of advance notice to incumbent providers that a new player could be invading their turf.

We know what that means.  A well-funded opposition campaign to demagogue the project.  Local cable companies can insert an unlimited number of free ads during every advertising break to slam the proposal.  Phone companies can release a blizzard of opposition mailers to convince consumers it’s as scary as Halloween — all tricks and no treats.

How can a local city or county government respond to the misinformation barrage?  They can’t.  Public officials can’t spend taxpayer dollars to promote such projects or refute industry propaganda.  They can’t even financially assist a citizen-run campaign.

That’s a fight with ground rules only Don King could love.

In the end, that leaves ordinary citizens of North Carolina facing down a multi-billion dollar statewide consortium of telecommunications interests hellbent on preserving and protecting the status qu0.

The earlier-discussed moratorium was a brick wall against municipal broadband.  Hoyle’s bill is the Great Wall of China with the logos of AT&T, Time Warner Cable, and CenturyLink plastered all over it.

But wait, there’s more.  To deal with municipal broadband projects that got an initial green light to dare to interfere with the phone and cable industries’ grand business plans, another provision provides a near endless supply additional referendums to get rid of the projects.  Hoyle’s bill actually demands more votes should existing systems need:

• refinancing to reduce the interest rate or restructure existing debt;
• to make repairs to the system’s “fixtures;” and/or
• to upgrade the system to meet subscribers’ needs.

Ponder the insanity:

• The legislation could be interpreted to demand a public referendum if your service goes out.  Can you wait until the next election to get back your cable service?
• If a municipal broadband fiber cable falls in your backyard, does it make a sound?  It won’t, but you will when you learn that cable might not be reattached to the pole until the whole town holds a referendum about it;
• Would you be upset if your local municipal provider could refinance its debt at a much lower interest rate, letting them cut their prices, but they can’t before the next election?
• While cable and phone companies refuse to upgrade their service to levels that would have made such municipal alternatives unnecessary, they also want to make certain the one provider that did meet your needs can’t upgrade… without a public vote.

These systems are not constructed with public tax dollars, but Senator Hoyle wants every citizen in a community, subscriber or not, to ponder the future of a local municipal broadband provider.  It’s like giving AT&T veto power over Time Warner Cable’s channel lineup.  Guess who has to pay for these constant referendums?  Taxpayers.  So while Senator Hoyle complains municipal broadband costs the state tax revenue, his legislation guarantees increased government spending on pointless referendums.  That’s logic only a politician working for the interests of big cable can appreciate.

For the cable and phone companies, and their good friends in the North Carolina legislature, this is their idea of a level playing field.  In reality it’s about as level as a downhill ski run.

Let’s extend that “fairness” out to incumbent cable and phone companies and consider whether you got a vote on:

• Whether or not the cable and phone companies got to put their wires on phone poles plunked down in front of your house;
• Whether or not you wanted either company to dig up your yard to bury their wiring;
• Whether you wanted that giant metal refrigerator-sized metal box installed on your street, in your yard, or on the phone pole you see from your window every day;
• Whether or not you want the cable company to repair Mrs. Jenkins’ problems with HBO up the street whenever it rains or replace the cable the squirrels chewed up;
• What channels and services you want to pay for, which ones you do not, and at what price you need to pay your local phone or cable company.
• What cable or phone company gets to provide service in your community.

Apparently the fairness concept only applies to potential new competitors, not the existing providers.

Let’s also consider the cable television industry didn’t just magically bloom into a multi-billion dollar business without government help.  In the early days of cable television, investors were assured that they were financing a monopoly provider, guaranteed through a franchise agreement process that gave newly built cable companies exclusivity to help repay construction costs.  Franchise wars broke out between 1978 and 1984 as competing companies promised the moon with state-of-the-art two-way cable systems with the capacity to offer 70 or more channels.  The players then included Time’s American Television and Communications Corporation, Warner’s Amex, and Telecommunications, Inc. (TCI).  ATC and Amex would later evolve into Time Warner Cable and TCI became AT&T Cable before being sold to Comcast.  Communities seeking cable television for their residents would later learn a lot of these promises made were promises broken – reneged on by large cable companies with few, if any consequences.

During the Reagan Administration, then-FCC Chairman Mark Fowler bestowed additional deregulation benefits on the cable industry.  The Museum of Broadcast Communications explains:

The Cable Communications Policy Act of 1984 addressed the two issues that still hindered cable television’s growth and profitability: rate regulation and the relative uncertainty surrounding franchise renewals. Largely the result of extensive negotiation and compromise between the cable industry’s national organization, the National Cable Television Association, and the League of Cities representing municipalities franchising cable systems, the act provided substantial comfort to the cable industry’s future.

Its major provisions created a standard procedure for renewing franchises that gave operators relatively certain renewal, and it deregulated rates so that operators could charge what they wanted for different service tiers as long as there was “effective competition” to the service. This was defined as the presence of three or more over-the-air signals, a very easy standard that over 90% of all cable markets could meet. The act also allowed cities to receive up to 5% of the operator’s revenues in an annual franchise fee and made some minor concessions in mandating “leased access” channels to be available to groups desiring to “speak” via cable television.

Additional reforms guaranteed pole attachment rights to the cable industry so they could wire and service their network unencumbered by utility company interference or high pole attachment fees.  Cable consolidation allowed formerly mom and pop cable systems to become part of a cable industry where just a handful of cable companies provide service to the majority of cable households.  Countless millions are spent each year by the industry to lobby state and federal governments to keep the party going without regulatory interference, suggesting competiti0n alone is the only regulation required.

Except when a new competitor enters the market, of course.  Fearing competition from municipal providers who will force cable and phone companies to charge reasonable rates and upgrade service, the best possible solution is to find a way to ban such projects.

Forcing regular referendums and the complexities and expenses associated with them guarantees no community in North Carolina would ever bother with the onerous requirements to launch municipal broadband projects.

That’s not just Jay and I saying that.  What Hoyle has proposed hardly breaks new ground.  It’s the same dog and pony show the industry has brought to other states to stop competition and keep prices high and service slow.

So let’s learn from the painful experiences of others:

First lobbying for legislation requiring referendums and then winning it, SBC (later AT&T) and Comcast used the opportunity to spend more than $300,000 of their subscribers’ money to launch a major misinformation campaign with misleading and inaccurate mailers that successfully fought off a proposition to deliver better and cheaper service through a municipal broadband project in Batavia, Geneva, and St. Charles, Illinois.  Fiber for Our Future documented the whole sordid affair from start to finish as a lesson to others confronting industry-backed referendum requirements.

Want a preview of the distortion and misinformation-campaign cable and phone providers will bring to stop municipal broadband?  Watch this SBC (today AT&T) executive tell city officials in Illinois that fiber is “unproven,” that the phone company’s DSL speeds are comparable to Comcast Cable, and that consumers don’t need the 3Mbps speed the company was delivering back in 2004 when this video was taken.  “What are you going to do with 20 megabits.  I mean, it’s like having an Indy race car and you don’t have the race track to drive it on.”  (3 minutes)

Longmont, Colorado spent years suffering with bad broadband service from Comcast and Qwest and sought a better alternative with a municipally-run provider.  But then the cable and phone giants spent $200,000 to put a stop to that.  While local subscribers may have preferred that $200,000 be used to reduce their rates, for Comcast and Qwest it was an investment in maintaining future pricing only duopolies can achieve, all while delivering “good enough for you” broadband service to Longmont residents.  In 2006, the Baller Herbst Law Firm collected information on industry-backed barriers to municipal broadband, and the list went on for nine pages.  Many of them sound eerily familiar to what Hoyle proposes (after cable and phone companies whispered time tested, industry proven ideas into his ear).

The city of North St. Paul, Minnesota has advice for states like North Carolina after their own experience with a coordinated industry-backed smear campaign against municipal broadband enabled by legislation similar to what Hoyle proposes:

What should be of interest to all communities was the organized opposition.  It appears that the incumbent providers, industry associations and politically conservative think tanks teamed up to promote negative news stories, do polling and opposition phone calls, provide transportation for identified “no” voters and create web sites.

While we heard some advocates lamenting this high priced anti-municipal fiber effort, this response is something that community leaders must expect and be prepared for.  A strong community education and mobilization effort must be a part of any municipal telecommunications initiative.  A coalition of business owners and residents must be created and maintained that can counter the expected efforts of the incumbent providers.  The benefits of the community-owned network should be documented and promoted so that an overwhelming majority of voters will choose to vote yes.  We hope that, one way or the other, North St. Paul gets the “More, Better Broadband” that the MN Broadband Coalition supports.

Of course, when local communities are banned from spending a nickel on advocacy for their projects, it effectively hands a restraining order to broadband advocates who can’t even get on the playing field, level or otherwise.

Outraged yet?

It will only get worse if Hoyle’s bill ever becomes law.  Residents in communities like Salisbury endured a sampling of the kind of negative campaign this industry will launch wherever municipal broadband competition threatens to appear.  In 2009, residents were hassled with push-polling phone calls from industry-backed astroturf groups claiming to represent ordinary citizens, but were actually little more than sock puppets for big telecom.  Your mailbox will be filled with blizzards of misleading mailers that current cable and phone customers pay for.  If they need more money, they can always raise your rates to cover the difference.  In the end, with the help of elected officials who don’t care about North Carolina consumers, existing municipal projects can bleed themselves dry (later to be used by the industry as “failed examples” to claim such projects are too risky to try) and proposed ones will never see a spade plunged into the soil to bury the first strand of fiber optic cable.

But it’s not all bad news.  It doesn’t have to happen this way.  You can tell your state representative you are watching them like a hawk on this issue.  Any “yes” vote for legislation like that proposed by Senator Hoyle is a no vote for them at the next election.  Let them know you are well aware of the game plan here — it has been tried in other states with similar legislation that is little more than protectionism for big telecom. Tell your elected officials you already have the power to choose whether or not you want these projects simply by voting for or against the elected officials that propose them.  While the concept of a referendum sounds fair on the surface, it’s not when you consider the past experiences of other communities who faced well-funded opposition campaigns, helpless to correct the record or fairly argue their position on the matter.  Providers know that, which is why they advocate this type of legislation in the first place.  It effectively stops competition, stops better service, and stops North Carolina residents from enjoying lower priced cable, phone, and broadband service.

There are a few stand-up representatives of the people of North Carolina who do deserve our gratitude and thanks today.

Rep. Paul Luebke, (D-Durham County) (who co-chairs the Revenue Law Study Committee) Paul.Luebke@ncleg.net 919-733-7663 College Teacher

Rep. Jennifer Weiss, (D-Wake County) Jennifer.Weiss@ncleg.net 919-715-3010 Lawyer-Mom

They both will likely face fierce opposition from the incumbent providers and their fellow legislators. Please take the time to thank them for standing with consumers today and for trying to protect the future of North Carolina and its economy.

Stop the Cap! will have video of today’s remarks by both legislators soon.  We hope to follow with a complete video record of today’s events surrounding the anti-competition legislation proposed by Senator Hoyle.  It will serve as a testament to just how much work we have to do to remove legislators who have stopped representing the public interest, and renew our support for those who stand with consumers.

Meanwhile, check out these two delightful pieces paid for by the cable and phone industry, sent to homes where municipal broadband projects faced a referendum in 2003 and 2004.  More than a dozen different mailers were sent to every home in the communities of Batavia, Geneva, and St. Charles, Illinois from phone and cable companies.  Now imagine the repercussions when not one of those communities could respond with their own mailers correcting the record and giving their side of the argument.  There is a reason why special interests spend enormous sums of money to protect their turf, and the battle is over before it even begins when those interests demand the other side not have the opportunity to respond in kind.

What smears do providers in North Carolina have in store for you?

… Continue Reading

North Carolina faces a moratorium on municipal broadband deployment.  On Wednesday, Senators David Hoyle and Daniel Clodfelter will introduce a bill expected to stall community broadband projects across the state.  The bill, which has yet to be seen by the public, should appear in the Revenue Laws Study Committee, co-chaired by Clodfelter.  We have heard the bill faces mere minutes of consideration before a quick vote, in hopes of moving it forward before the public finds out what elected officials are doing on their behalf.

Proponents of the moratorium argue that municipal broadband harms private industry and reduces tax revenue the state earns from those businesses.  But their argument lacks something — merit.  Missing from the debate are the actual numbers from the state’s largest telecommunications companies.  How much tax revenue does Time Warner Cable, AT&T and CenturyLink (formerly EMBARQ) generate?  We don’t know and the two senators (and the companies involved) aren’t saying.

Municipal broadband projects bring numerous benefits to North Carolina communities:

• jobs (taxpayers);
• high tech businesses moving into the state (taxpayers);
• entrepreneurial innovation that creates new small businesses (taxpayers); and
• benefits to the education and health care sectors (future taxpayers and keeping current taxpayers alive and healthy).

Make no mistake — a moratorium is just a stall tactic to protect current provider profits and avoid competition, all while giving them more time to organize a push for a permanent ban on such projects.

Why are Hoyle and Clodfelter only concerned with protecting incumbent telecom companies?  What about the rest of us?

Please join us tomorrow at the Legislative Office Building in Raleigh, and perhaps we can ask them.

Action Alert — We Need Your Attendance!

• Where: Legislative Office Building, Raleigh
• When: Wednesday May 5th at 9:30am, Room 544
• Why: Just having consumers in the room make elected officials nervous, especially when they are about to introduce a bill the public has never seen five minutes before a vote to move it forward in the short legislative session starting May 12th.

GOOGLE AND SEVEN INDUSTRY GROUPS OPPOSE NC MUNICIPAL BROADBAND MORATORIUM

Raleigh, NC – May 4, 2010   Google, Intel and six other private sector groups announced strong opposition today to a North Carolina municipal broadband moratorium being considered by the General Assembly’s Revenue Laws Study Committee, calling it “a step in the wrong direction,” “counterproductive” and “conspicuously in opposition to national broadband policy.” Legislation to prohibit municipal broadband deployments in the state is expected to be introduced and voted on tomorrow May 5. At least 45 individual communities in North Carolina, including Raleigh, Cary, Chapel Hill, Carrboro, Greensboro, Asheville and Wilmington, recently applied to partner with Google on its announced plans to build ultra-high speed fiber to the home systems.

In a strongly-worded letter to North Carolina’s House and Senate leadership, Google, Intel, Alcatel-Lucent, the Fiber to the Home Council (FTTC), American Public Power Association (APPA), Atlantic Engineering, Telecommunications Industry Association (TIA), and the United Telecom Council (UTC) stated that such a bill would harm both the public and private sectors. “It would thwart public broadband initiatives, stifle economic growth, prevent the creation or retention of thousands of jobs, and diminish quality of life in North Carolina. In particular, it would hurt the private sector in several ways: by undermining public-private partnerships; hamstringing the private sector’s ability to sell its goods and services; interfering with workforce development; and stifling creativity and innovation.”

“Enactment of a counterproductive municipal broadband moratorium would put North Carolina conspicuously in opposition to national broadband policy,” the letter states, and continues: “The Federal Communications Commission’s National Broadband Plan also admonishes states not to interfere with community broadband efforts where local officials do not believe that the private sector is acting quickly enough to meet community broadband needs.  Consistent with these expressions of national policy, communities across America are doing their share to contribute to the rapid deployment of broadband to all Americans.”

Those words echo a similar statement by FCC Commissioner Mignon Clyburn just last week in Asheville, NC. Commissioner Clyburn equated such a moratorium to denying citizens “the opportunity to connect with their nation and improve their lives” and called such a move “counterproductive,” one which could ” impede the nation from accomplishing the [National Broadband] Plan’s goal of providing broadband access to every American and every community anchor institution.”

A bill supported by Time Warner Cable and AT&T, the municipal broadband moratorium is being pushed by Senators Hoyle (D-Gaston) and Clodfelter (D-Charlotte Mecklenburg) for the alleged purpose of protecting the private sector and associated state tax revenues. But opponents to the bill argue the bill would hurt the private sector and even these representatives’ local constituents. Such a moratorium would terminate the City of Charlotte’s recent plans to build a multi-million dollar municipal network to provide broadband service to its public safety, educational, government institutions and the unemployed through the use of federal ARRA broadband funds. The bill also has the potential to make both Gaston and Gaston County less attractive to Google with whom they submitted an application to partner for a fiber to the home network.

“North Carolina should be lowering barriers to public broadband initiatives rather than establishing new ones, so that we and other high technology companies can spread and prosper across this beautiful state,” the letter states. At least 45 individual communities in North Carolina, including Raleigh, Cary, Chapel Hill, Carrboro, Greensboro, Asheville and Wilmington, recently applied to be partners with Google on its announced plans to bring  fiber to the home to between 50,000 to 500,000 households in an effort to unleash advanced scientific, educational, medical and environmental applications through these ultra-high speed networks, now being deployed throughout the world and in China. North Carolina already has two municipalities, Wilson and Salisbury, deploying these fiber systems to their residents.

Jay Ovittore, co-Director at Communities United for Broadband says, “A moratorium or any other barriers to “real” next generation broadband deployment would be a leap in the wrong direction for North Carolina’s citizens and for North Carolina’s economy.”  Communities United for Broadband is a citizen run advocacy group that promotes the exchange of ideas between communities, both rural and urban, to find the best solutions for their broadband needs.  You can find Communities United for Broadband on Facebook at http://bit.ly/aW6skP and on Twitter at http://twitter.com/CUFB

For more information:

www.broadband4everyonenc.com

http://groups.google.com/group/nc-public-broadband

http://stopthecap.com/2010/04/28/fcc-commissioner-mignon-clyburn-speaks-in-favor-of-municipal-broadband-projects-at-seatoa-conference/

http://www.muninetworks.org/

The Fiber to the Home Council also sent a separate letter to North Carolina Governor Bev Perdue.

You can continue to write the legislators who are pushing this industry written legislation.  Trust me they are hearing you. Be nice, but let them know you do not want a moratorium on muni-broadband, it will hurt economic development in our state and you want what the rest of the world enjoys for broadband access.

• Sen. Daniel Gray Clodfelter (Co-Chair) Mecklenberg Daniel.Clodfelter@ncleg.net (919) 715-8331 Democrat (704) 331-1041 Attorney
• Sen. Peter Samuel Brunstetter Forsyth Peter.Brunstetter@ncleg.net (919) 733-7850 Republican (336) 747-6604 Attorney
• Sen. David W. Hoyle Gaston David.Hoyle@ncleg.net (919) 733-5734 Democrat (704) 867-0822 Real Estate Developer/Investor
• Sen. Samuel Clark Jenkins Edgecomb, Martin, Pitt Clark.Jenkins@ncleg.net (919) 715-3040 Democrat (252) 823-7029 W.S. Clark Farms
• Sen. Jerry W. Tillman Montgomery, Randolph Jerry.Tillman@ncleg.net (919) 733-5870 Republican (336) 431-5325 Ret’d school teacher
• Rep. Harold J. Brubaker Randolph Harold.Brubaker@ncleg.net 919-715-4946 Republican 336-629-5128 Real Estate Appraiser
• Rep. Becky Carney Mecklenberg Becky.Carney@ncleg.net 919-733-5827 Democrat 919-733-5827 Homemaker
• Rep. Pryor Allan Gibson, III Anson, Union Pryor.Gibson@ncleg.net 919-715-3007 Democrat 704-694-5957 Builder/TWC contractor
• Rep. Dewey Lewis Hill Brunswick, Columbus Dewey.Hill@ncleg.net 919-733-5830 Democrat 910-642-6044 Business Exec (Navy)
• Rep. Julia Craven Howard Davie, Iredell Julia.Howard@ncleg.net 919-733-5904 Republican 336-751-3538 Appraiser, Realtor
• Rep. Daniel Francis McComas New Hanover Danny.McComas@ncleg.net 919-733-5786 Republican 910-343-8372 Business Executive
• Rep. William C. McGee Forsyth William.McGee@ncleg.net 919-733-5747 Republican 336-766-4481 Retired (Army)
• Rep. William L. Wainwright Craven, Lenoir William.Wainwright@ncleg.net 919-733-5995 Democrat 252-447-7379 Presiding Elder

Don’t forget to thank those we have identified as on our side of the issue, for being forward thinking and truly representing the people:

• Sen. Daniel T. Blue, Jr. Wake Dan.Blue@ncleg.net (919) 733-5752 Democrat (919) 833-1931 Attorney
• Sen. Fletcher Lee Hartsell, Jr. Cabarrus, Iredell Fletcher.Hartsell@ncleg.net (919) 733-7223 Republican (704) 786-5161 Attorney
• Sen. Josh Stein Wake Josh.Stein@ncleg.net (919)715-6400 Democrat (919)715-6400 Lawyer
• Rep. Paul Luebke (Co-Chair) Durham Paul.Luebke@ncleg.net 919-733-7663 Democrat 919-286-0269 College Teacher
• Rep. Jennifer Weiss Wake Jennifer.Weiss@ncleg.net 919-715-3010 Democrat 919-715-3010 Lawyer-Mom

Back in May of 2009, I started a series called Follow the Money to illustrate the large amounts of money the telecommunications companies spend on legislators to push their agendas for them.  You can always tell how most legislators will vote if you simply follow the money.

Through the wonders of public records searches at the North Carolina State Board of Elections, I am able to see the PAC contributions that legislators have received.  I can also cross reference this information with the dates the legislators are in session and the Secretary of State’s online lobbyist database.  In North Carolina you can take PAC money from a PAC who has a registered lobbyist so long as the General Assembly is not in session. If you take the contribution while in session, the state’s General Statute says it must be forfeited to the state’s General Forfeiture fund.

In this Moratorium Watch 2010 edition I want to focus on two North Carolina legislators leading the charge to ban or restrict municipal broadband projects — Sen. Daniel Clodfelter (D-Mecklenburg) and Sen. David Hoyle (D-Gaston).

Clodfelter is the co-chair of the Revenue Laws Study Committee.  In just 24 months, he took in a total of $16,000 in PAC contributions from big telecom companies and their friends:

• $1500 from North Carolina Cable PAC
• $1000 from Sprint/Nextel
• $1500 from Embarq
• $500 from the NC Association of Broadcasters
• $5500 from Time Warner Cable
• $5000 from AT&T
• $1000 from North Carolina Broadcast PAC

Senator “Obsolete Fiber” Hoyle dwarfed Clodfelter over the past 24 months:

• $3500 from Sprint/Nextel
• $4500 from Embarq
• $8250 from Time Warner Cable
• $4000 from AT&T
• $2000 from Electricities (Drew Saunders is a lobbyist with Electricities and was a primary sponsor on the Level Playing Field bill for big telco a few years back)
• $1500 from North Carolina Broadcast PAC
• $1500 from North Carolina Cable PAC

That’s $25,250 for Hoyle from companies with an active interest in the telecommunications debate in this state.

When you consider more than $40,000 was spent to boost the campaign coffers of just two state legislators, it’s not hard to see big money is involved statewide.  It doesn’t even have to arrive in the form of a PAC contribution.  Clodfelter just had a $29 million Time Warner Cable headquarters building placed in Mecklenburg County.  Hoyle helped procure the Apple Data Center, located 22.5 miles north of his district in Maiden, NC.

When cross-referencing Hoyle’s PAC contributions with the state lobbyist database, I found several possible conflicts that warrant investigation, and I will bring my concerns to the North Carolina State Board of Elections.  If my complaint is upheld, perhaps Hoyle’s concerns about the need for additional state revenue could be eased knowing some potentially improper contributions made to his campaign were turned over to the General Forfeiture fund.  Hoyle has already announced he is not running for re-election so he doesn’t need the money anyway.

Once you count that money, it’s easy to discover why some of our state legislators are actively working against our own best interests here in North Carolina.  The corporate campaign contribution, which can be likened to legalized bribery, makes it difficult to convince legislators to always vote with their constituents’ best interests at heart.  Whenever legislators are willing to cash corporate contributions and vote against consumer interests, we’ll be here to call them on it.  Until this country gets corporate money out of government, it’s all we’ve got.

Today’s merger between CenturyTel (soon to be CenturyLink) and Qwest will combine 10 million Qwest customers and 7 million from CenturyTel into a single company serving 37 states in every region of the country except the northeast and much of California and Nevada.  CenturyLink gains access to Qwest’s highly valued portfolio of services sold to business customers and Qwest gets a partner that can help manage its $11.8 billion debt and help grow the last remaining Baby Bell, formerly known as US West, into a national player capable of withstanding ongoing erosion of landline service.

The deal will impact consumers and businesses, and will challenge regulatory authorities to consider the implications of ongoing consolidation in the traditional telephone service marketplace.  It brings implications for broadband service strategies for both companies, which we’ll explore in greater detail.

Breaking Up Was Too Hard to Do, So Let’s Put It Back Together

Ultimately, the genesis of this, and most of the other big telecom deals that we’ve witnessed over the past few years comes from the 1996 Communications Act, which deregulated large parts of the telecommunications industry and triggered a massive wave of consolidation that is still ongoing.  That legislation was the antithesis of the 1984 court ruling which ultimately led to the breakup of AT&T and the Bell System monopoly in 1984.  When President Clinton signed the 1996 bill into law, it allowed much of the Bell System to eventually recombine into two major entities:

• AT&T ultimately pieced itself back together with the acquisitions of:

BellSouth — serving the southeastern United States

Ameritech — serving the upper Midwest

SBC/Southwestern Bell — serving Texas and several southern prairie states

Pacific Telesis — serving California and Nevada

• Verizon became a regional powerhouse by combining:

NYNEX — serving New England and New York

Bell Atlantic — serving mid-Atlantic states

Qwest Tower - Denver

The remaining orphaned Baby Bell was US West, which comprised Mountain Bell serving the Rocky Mountain states, Northwestern Bell which covered the Dakotas, Minnesota, the prairie states not covered by SBC, and Pacific Northwest Bell which managed service for Oregon, Washington, and northern Idaho.  US West was subjected to a hostile takeover in 2000 by an upstart telecommunications company that was laying fiber optic cable in the late 1990s alongside the railways its owner, Philip Anschutz, also happened to own.  Qwest assumed control of US West that summer and rechristened it with its own name.  Owned by a Bell outsider, Qwest has always been the company that didn’t quite fit with the rest.

The company gained respect for its enormous fiber backbone that weaves across many American cities, including several in the northeast.  It is best known for its services to business customers.  On the residential side, the story is less impressive.  The company’s customer service record is spotty and the company has accumulated an enormous amount of legacy debt left over from earlier acquisitions.  Despite the company’s repeated efforts to find a partner, it took until today for it to finally find one.  There are several reasons for this:

1. Qwest’s service area is notoriously rural and expensive to serve.  Outside of its corporate headquarters in Denver, the majority of its service area is either mountainous or rural.  Even today, Qwest serves only 10 million residential customers, almost matched by CenturyTel’s own seven million largely rural customers scattered across the country.
2. Qwest’s history has been littered with financial scandals, starting with a series of deals with disgraced Enron from 1999-2001.  That was followed with charges of fraud and insider trading in 2005.
3. Qwest does not own its own wireless division and its previous efforts to deliver television service to customers were largely unsuccessful.  That made Qwest’s ability to withstand erosion in its core business – landline phone service, more difficult.
4. Qwest’s debt is downright frightening for would-be suitors.

Why Does CenturyTel Want to Buy Qwest?

CenturyTel claims such a transaction allows a combined company to become a larger player on the national scene.  By combining Qwest’s good reputation in the business telecommunications sector with combined efforts to deliver broadband products including high speed Internet, the company thinks the combination can’t be beat.  CenturyTel envisions packages of video entertainment, data hosting and managed services, as well as fiber to cell tower connectivity and other high bandwidth services to deliver replacement revenue lost from disconnected landlines.  It also believes it can realize cost savings from the merger and keep the company relevant on a stage dominated by Verizon, AT&T, and a few large cable companies.

But there are other reasons.  For the three super-sized independent phone companies that Americans are growing increasingly familiar with — Frontier Communications, Windstream Communications, and CenturyTel, their business models depend on their ability to constantly engage in deal-making and acquisitions.  All three companies have built their businesses on investors who see their stocks as “investment grade” financial instruments that dependably return a dividend back to shareholders.  As we’ve seen in countless quarterly financial results conference calls, all three companies are preoccupied answering questions from Wall Street about the all-important dividend.  TV personalities like Jim Cramer has specifically recommended these telecom stocks based, in part, on their dividend payout.  If that dividend dramatically shrunk or stopped, the share price for all three stocks would likely plummet.

One of the side effects of companies dependent on dividend payouts is their constant need to be on the lookout for additional merger and acquisition opportunities.  Here’s how it works.  Let’s say CenturyTel’s debt load and reduced revenue, caused by customer defections to cell phones or cable phone service, delivered a bad fiscal quarter for the company.  Cash flow was down, and company officials simply couldn’t keep the dividend payout at the same level as the previous quarter.  Since many people hold CenturyTel stock specifically because of the dividend, a downward turn in that payout could cause some to sell their shares, driving the stock price downwards.

CenturyTel is still digesting a previous merger with EMBARQ, which led it to rechristen the company CenturyLink

One way around this is to seek out a new merger or acquisition target.  By bringing two companies together, preferably one with a healthy cash flow, suddenly the big picture changes.  Your balance sheet now reflects the combined revenue from both companies, which incidentally makes the percentage of debt versus revenue look a lot healthier.  Cash flow immediately improves, especially if you can slash redundant costs.  Come next quarter, that dividend payout is right back up in healthy territory.

Sometimes companies become so preoccupied with their dividend and corresponding stock price, it can lead them to pay out more in dividends than a company earns in revenue.  While that’s great for investors, it is unsustainable in the long run.

Many critics of telecommunications companies employing this strategy claim it’s evidence that a company is biding time and unwilling to invest in innovation for the future.  Some also believe dividend payouts shortchange customers because they can eventually bleed a company’s ability to invest in service improvements, research and development, and capital investments to maintain their network and expand service.

As consolidation continues, the number of new buyout opportunities begins to shrink, and one shudders to think what happens when there is no one else to buy.  How long is this business model sustainable?

Both CenturyTel and Qwest also recognize the impact of ongoing disconnections from landline service, now averaging 10 percent of their customers a year.  Those departing customers are now relying on their cell phones or alternative calling services like cable company “digital phone” service or broadband-based calling from companies like Vonage or Skype.

The one service they hope can stem customer defections is broadband.  Unfortunately, telephone companies are increasingly losing ground against their cable modem competitors, who have an easier time increasing broadband speeds for customers now seeking online video and other high bandwidth applications.

Of course, one of the benefits of being a “rural phone company” is the fact cable competition is often unlikely.  In fact, some of the lowest erosion rates for landline service are in rural communities where the telephone company is the only game in town.  There is plenty of money still to be made offering high priced slow speed DSL service in communities with no cable competitor and spotty wireless broadband that is often slower and usage-limited.

All three of these big independent players are well aware of this, and maintaining a strong position in relatively slow speed DSL service also protects another revenue stream — Universal Service Fund revenue given to rural providers to equalize telephone rates.  CenturyTel recognizes the increasing likelihood much of that money will be diverted to stimulating broadband expansion, something the phone company is more than willing to do if it means preserving their subsidies.

The new combined Qwest-CenturyTel company hopes the merger can help both survive obsolescence.

For Qwest, a debt reduction may make it possible to spend more to deliver fiber-to-the-curb service, similar to AT&T U-verse.  That could increase broadband speeds and prompt them to reconsider their earlier decision to abandon IPTV in the western half of the country.

CenturyTel can continue to offer traditional DSL service with a more incremental upgrade approach in its more rural service areas, but tap into Qwest’s fiber network to reduce backhaul expenses and potentially pick up new business customers by offering Qwest-branded business services.  Company officials strongly hinted that, at least for now, CenturyTel’s existing customers will continue to find the video portion of their “triple play” package delivered by DirecTV satellite service, so no IPTV for them.

CenturyTel and Qwest's combined local service areas

What Does This Mean for Employees of Both Companies?

Mergers like this always generate great excitement over “cost savings” made possible by the merger.  Much of these savings typically come from employee expenses.  When you hear “cost savings,” think layoffs and pay cuts for all but top management.  Based on past precedent, Qwest employees can anticipate some serious job losses if this transaction closes, especially in the business office.  The combined company will be henceforth known as CenturyLink, with headquarters remaining in Monroe, Louisiana.  That is potentially bad news for Qwest’s employees in Denver.

The transaction is expected to generate annual operating cost savings (which CenturyTel calls “synergies”) of approximately $575 million, which are expected to be fully realized three to five years following closing.  The transaction also is expected to generate annual capital expenditure “synergies” of approximately $50 million within the first two years after close.  That means spending less on infrastructure improvements.

Billing and customer service are traditionally handled by CenturyTel when a company joins the CenturyTel family.  North Carolina customers can attest to that as EMBARQ, an earlier CenturyTel target, finally moves to CenturyTel’s billing system in the coming weeks.

For the sake of pushing the merger through state regulatory agencies, cutbacks in unionized technicians who handle service installations, repairs, and maintain the lines are not expected.  The Communications Workers of America issued a statement today that mildly acknowledged the merger announcement, saying the union “looked forward to serious negotiations with both companies” regarding employment security and assurances of aggressive high speed broadband rollout throughout both companies’ territories.

How the combined CenturyTel-Qwest company stacks up against other independent phone companies. (Q-Qwest, CTL-CenturyTel, FTR-Frontier, WIN-Windstream)

What Does This Mean for Qwest and CenturyTel Customers?

In the short term, nothing.  This merger will take at least a year to complete, assuming regulatory approval in every state where a review is required by state officials.  In 2011, should the merger be approved, Qwest customers can anticipate transition headaches as the Denver-based company winds down operations in favor of CenturyTel.  Billing and customer service will both be impacted.  Long term plans for major projects are likely to be stalled until the merger settles into place.  CenturyTel business customers will eventually see Qwest’s strong business products line become available in many CenturyTel service areas.  Eventually, some larger CenturyTel-served cities may find Qwest’s more advanced DSL service arriving on the scene delivering faster speeds.

Although CenturyTel has hinted it may review whether it’s now large enough to operate its own wireless mobile division, for the near term, expect the partnership to resell Verizon Wireless service to continue.

What is the View of Stop the Cap! on the CenturyTel-Qwest Merger?

Generally speaking, most of the industry consolidation that has been fueled by a deregulatory framework established by the Clinton Administration has not benefited consumers anywhere near the level promised by deregulation advocates.  The three largest independent phone company consolidators — Frontier, Windstream, and CenturyTel are spending more time and resources looking for new acquisitions and schemes to pay out dividends than they are working to enhance service in their respective service areas.  Smaller independent phone companies are deploying fiber to the home networks and answer to the communities where they work and live.  From companies like Frontier, we get Internet Overcharging schemes combined with slow DSL service, tricks and traps from “price protection agreements” that automatically renew, rate increases, and cost cutting.  Windstream plagues some of their customers with extended service outages, and CenturyTel’s promised broadband speeds often don’t deliver.

Unfortunately, bigger is not always better in telecommunications.  While the biggest players like Verizon seek to discard rural American customers, getting one of these three companies instead doesn’t always represent progress.  Our regulators are too often satisfied with basic answers to questions about broadband and service improvements that come with few details and deadlines.  It is just as important to ask what kind of broadband service a company will bring, at what speeds and price, and what usage limits, if any, will accompany the service.

Companies engaged in these mergers hope regulators don’t pin them down to specific service commitments and standards, which could harm the financial windfall these deals bring to a select few.  But they must be the first thing on the table, guaranteeing that customers also get the enjoy the “synergies” these deals are supposed to bring.

CenturyTel Inc. agreed Thursday to buy Qwest Communications International, Inc. in an all-stock deal that values the last legacy “Baby Bell” at nearly $10.6 billion, in one of the nation’s largest telecommunications deals.

The merger would dwarf Frontier Communications’ purchase of Verizon landline service and create the nation’s largest independent phone company with operations in 40 states.

Qwest has been off and on the sales block for years, considered the weakest player among the split-up remnants of the old Bell System.  Qwest has fallen well behind AT&T and Verizon in adopting next generation technology to keep landline service relevant in a changing marketplace.  CenturyTel’s business model, like that of Windstream and Frontier, depends on serving rural areas with basic broadband and phone services, without incurring the costs larger providers have in deploying fiber to the home or fiber to the curb networks needed to compete with cable television providers.

Critics contend the consolidation of independent phone companies has left them preoccupied with their stock value and dividend payouts, unwilling to make substantial investments many believe are essential to keep such companies relevant in the long term.  Cell phones continue to eat away at landline service, and the kind of slow speed DSL service available from most of these players cannot compete effectively against cable and fiber broadband service, except in rural communities where customers have just one choice.

We will have additional coverage on this important development shortly.

Report on Today’s Legislative Meeting

Sen. David Hoyle (D-NC)

As I have been reporting here, the moratorium on municipal broadband is alive and well in the legislative halls of Raleigh.  Senator David Hoyle (D-Gaston), sponsor of last year’s consumer atrocity HB1252, is back again asking Senator Daniel Clodfelter (D-Mecklenburg County) for a vote May 5th on a proposed moratorium for municipal broadband projects.  Hoyle is not running for re-election.

While no new legislation has surfaced yet, several legislators continue to hint that a new bill is forthcoming.  Be assured any such legislation will be designed to protect today’s monopoly/duopoly marketplace for broadband service in North Carolina.

Senator David Hoyle calls on the legislative committee to introduce and vote for a moratorium on municipal broadband projects in North Carolina. (April 21, 2010) (1 minute, 30 seconds)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Meeting Highlights:

Senator Daniel Clodfelter (D-NC)

• Senator Clodfelter opened the meeting stating that he “wants to focus on revenue issues/financing, not whether or not high speed Internet is a good thing.”

• Heather Fennell, from the research division at the General Assembly gave a presentation citing laws that govern cities, the original lawsuit that established precedent for cities to construct municipal fiber networks, what cities have them, and who pays the taxes on different systems.

• Vance Holloman, Deputy Treasurer-State and Local Finance Division spoke next.  He assured the committee and attending audience that North Carolina’s existing municipal systems are in good standing and he expected they would be able to pay down debts incurred from initial construction and deployment costs.  Holloman added the Local Government Commission, which has to approve the financing of these systems, believed these projects represent “solid economic development investments.”  Holloman’s strong presentation should have encouraged legislators to favor economic development from fiber optic broadband, but we had a strong sense several members had already made up their minds made up to oppose these projects.  You will have to convince them to reconsider.

• The next part of this session divided 50 minutes between private commercial providers and municipalities to share their views.

The commercial providers went first, beginning with attorney Marcus Trathen from the law firm Brooks/Pierce.  Today, he was representing the North Carolina Cable Communications Association (NCCCA).  Trathen has also appeared at prior meetings representing the interests of Time Warner Cable.

Trathen’s presentation was about as expected – talking points loaded with misrepresentations and misinformation.  Trathen told the committee the industry does not object if cities build private networks for internal communications (how generous), but doesn’t want those networks competing with NCCCA members.

Kelli Kukura, NC League of Municipalities

Suddenlink Communications’ Bill Paramore and AT&T lobbyist Herb Crenshaw also spoke, speaking in glowing terms about investments already made to improve service in the state.  Crenshaw claimed AT&T is providing U-verse service in North Carolina after spending $1.2 billion dollars on system upgrades, an amount some have questioned (a 2007 press release pegged it at $350 million.)  Of course, North Carolina’s cable and broadband customers who were promised savings from all this “robust competition” have instead been stuck paying annual rate increases that more often than not exceed the rate of inflation.

Next up were the municipalities.

Kelli Kukura from the North Carolina League of Municipalities started by challenging industry propaganda designed to downplay the benefits of municipal broadband.  Kukura noted at least 30 North Carolina communities enthusiastically applied for Google’s proposed 1 gigabit fiber to the home network, illustrating intense interest in fiber networks.  Google has also been an active proponent of municipal broadband, Kukura noted, reminding legislators the search engine giant defended the rights of municipalities seeking to deploy next generation broadband networks.

Among the communities that have their own municipal systems, job growth grew by an average of 6.4 percent.  Kukura cited broadband success stories in Bristol, Virginia and Wilson, North Carolina.

Salisbury small businessman Brad Walser, owner of Walser Technology Group testified that North Carolina community’s new municipal broadband network Fibrant would meet his company’s needs for broadband capacity not available from commercial providers.  Walser noted Salisbury is suffering from an unemployment rate exceeding 14 percent.  Advanced broadband, he believes, could help the city attract new businesses that will help create new, high paying jobs.  Fibrant is expected to launch later this year.

EPB provides broadband service for residents in Chattanooga, Tenn.

Some of the strongest testimony came from Colman Keane, senior strategic planner for municipally-owned EPB Telecom. Keane traveled all the way from EPB’s home in Chattanooga, Tennessee to share his experiences confronting a telecommunications industry hostile to the prospect of facing a new competitor.  Keane has seen and heard the industry arguments all before, noting Chattanooga heard the exact same scare stories legislators in Raleigh were hearing today.  Chattanooga also faced a proposed one year moratorium and a blizzard of industry-backed lawsuits, all which were won by the city.

The benefits of fiber optic broadband in Chattanooga include dramatically-improved broadband speeds as well as a more efficient power grid made possible from smart meters that help Chattanoogans reduce their peak power usage, saving money.  I want to thank Colman for making the long journey on behalf of consumers in North Carolina.

• Finally, Raleigh community activist and former city council candidate Octavia Rainey spoke out against municipal broadband, which concerned me.  Rainey spent her time seated with the telecom lobbyists, and her presentation illustrated the impact of astroturf efforts to co-opt good-hearted consumers into the industry cause. I hope to establish a dialogue with Ms. Rainey to share our information with her and learn more about how she reached her views on this subject.  More to come.

The complete hearing of the Revenue & Laws Committee of the North Carolina Legislature on the issue of the financial implications of municipal broadband, chaired by Senator Daniel Clodfelter (D-Mecklenburg County) (April 21, 2010) (2 hours, 8 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

[Octavia has a long history of community involvement in Raleigh, trying hard to improve her neighborhoods and life in general for area residents, something she is to be applauded for doing.  I suspect Ms. Rainey has formed her views on municipal broadband in part from her close working relationship with AT&T, who has a long history trying to make friends with various community groups in part to win favor for their corporate agenda.  In this case, Octavia admits AT&T's Cynthia Mitchell and her have become "great partners."  AT&T provided support in building an area playground and also paid for lunch for volunteers working on the project, adding the company wanted to be a part of the Raleigh community.  There is nothing wrong with that, of course, but one wonders if the conversation also drifted into AT&T's talking points along the way.

Ms. Rainey also praised AT&T for delivering free Internet service to 290 Raleigh-area families last fall, which would make it ironic if she didn't support municipal broadband, which has a proven track record of erasing the digital divide and lowering prices for hard-pressed consumers.  These are the people that need some fact-based information about the true benefits of municipal broadband.  -- Phillip Dampier]

Today was expected, but disappointing nonetheless.  Hoyle actually suggested that fiber networks may be obsolete in five years and we may be moving to wireless.  If that were true, why is he hellbent on a moratorium and the banning of such networks at the industry’s behest?  Why would the telecommunications industry be concerned about “obsolete fiber networks?”  The only thing obsolete here are the broadband networks owned by big cable and phone companies Hoyle wants to preserve and protect.

Rep. Pryor Gibson (D-NC)

Rep. Pryor Gibson, who we noted is a manager for Time Warner Cable Construction agreed to recuse himself from this issue after it became a point of contention and sat in the back corner of the room.

All of your e-mails and calls have been getting through to the legislators.  This kind of attention makes them nervous and I ask you to continue.  I can assure you that we here at Stop the Cap!, along with Communities United for Broadband, Broadband for Everyone NC, and Save North Carolina Broadband are going to ratchet up attention on this issue.

WHAT YOU CAN DO TO HELP

Continue writing and calling the legislators below and asking them to oppose a moratorium on municipal broadband.  Make plans on May 5th to come to Raleigh and be part of the crowd that opposes the moratorium.  I will post meeting details as they develop.

Please thank the legislators we have identified on this committee as friends of our cause:

• Sen. Daniel T. Blue, Jr. Wake Dan.Blue@ncleg.net (919) 733-5752 Democrat (919) 833-1931 Attorney
• Sen. Fletcher Lee Hartsell, Jr. Cabarrus, Iredell Fletcher.Hartsell@ncleg.net (919) 733-7223 Republican (704) 786-5161 Attorney
• Sen. Josh Stein Wake Josh.Stein@ncleg.net (919)715-6400 Democrat (919)715-6400 Lawyer
• Rep. Paul Luebke (Co-Chair) Durham Paul.Luebke@ncleg.net 919-733-7663 Democrat 919-286-0269 College Teacher
• Rep. Jennifer Weiss Wake Jennifer.Weiss@ncleg.net 919-715-3010 Democrat 919-715-3010 Lawyer-Mom

The rest of the lot either doesn’t support North Carolina consumers or have not yet made their views known on this issue.  We must pin them down and identify those elected legislators that represent the people versus those representing big cable and phone interests.  Be sure to tell them you will interpret any support for a moratorium on municipal broadband to mean they are opposed to competition, opposed to lower prices for consumers, opposed to job creation and economic growth, and obviously for the cable and phone interests that will stop at nothing to keep these systems from being built.

Ask them how they could possibly support keeping North Carolina 41st in the country in broadband rankings, why they are against reducing the 11.2 percent unemployment rate (10th worst in the country) in North Carolina, and how they can justify a vote that guarantees exactly more of the same.  If you are from a city that applied for Google Fiber, remind your legislator passing this kind of hostile moratorium delivers a strong message this state is not serious about the next generation of broadband, and Google should look elsewhere.

Above all, note now that they understand the true implications this moratorium will have on constituents, you are confident there is no way they could ever support such a bad idea.  Their delivery of a strong “no” vote reminds you why you supported them in the last election and will consider doing so again in the next.

Always be polite, professional, and persuasive in your correspondence, but deliver a clear and firm message that supporting a moratorium is completely unacceptable.  Finally, be sure to ask them to get back in touch with you regarding their position on this issue as soon as possible.  Then let us know!

• Sen. Daniel Gray Clodfelter (Co-Chair) Mecklenberg Daniel.Clodfelter@ncleg.net (919) 715-8331 Democrat (704) 331-1041 Attorney
• Sen. Peter Samuel Brunstetter Forsyth Peter.Brunstetter@ncleg.net (919) 733-7850 Republican (336) 747-6604 Attorney
• Sen. David W. Hoyle Gaston David.Hoyle@ncleg.net (919) 733-5734 Democrat (704) 867-0822 Real Estate Developer/Investor
• Sen. Samuel Clark Jenkins Edgecomb, Martin, Pitt Clark.Jenkins@ncleg.net (919) 715-3040 Democrat (252) 823-7029 W.S. Clark Farms
• Sen. Jerry W. Tillman Montgomery, Randolph Jerry.Tillman@ncleg.net (919) 733-5870 Republican (336) 431-5325 Ret’d school teacher
• Rep. Harold J. Brubaker Randolph Harold.Brubaker@ncleg.net 919-715-4946 Republican 336-629-5128 Real Estate Appraiser
• Rep. Becky Carney Mecklenberg Becky.Carney@ncleg.net 919-733-5827 Democrat 919-733-5827 Homemaker
• Rep. Pryor Allan Gibson, III Anson, Union Pryor.Gibson@ncleg.net 919-715-3007 Democrat 704-694-5957 Builder/TWC contractor
• Rep. Dewey Lewis Hill Brunswick, Columbus Dewey.Hill@ncleg.net 919-733-5830 Democrat 910-642-6044 Business Exec (Navy)
• Rep. Julia Craven Howard Davie, Iredell Julia.Howard@ncleg.net 919-733-5904 Republican 336-751-3538 Appraiser, Realtor
• Rep. Daniel Francis McComas New Hanover Danny.McComas@ncleg.net 919-733-5786 Republican 910-343-8372 Business Executive
• Rep. William C. McGee Forsyth William.McGee@ncleg.net 919-733-5747 Republican 336-766-4481 Retired (Army)
• Rep. William L. Wainwright Craven, Lenoir William.Wainwright@ncleg.net 919-733-5995 Democrat 252-447-7379 Presiding Elder

The future of North Carolina’s economic growth is at stake here.

We are getting the message out about what will occur Wednesday here in North Carolina and you all are doing a great job writing and calling legislators to let them know not to support a Moratorium on Municipal Broadband Deployment.  But, we need to show up with an army of folks this Wednesday morning to show them we are involved and watching their every move.

Please try to be at the Legislative Office Building, Room 544, 300 North Salisbury Street in Raleigh this Wednesday at 9:30am.

In the original action alert we told you what was at stake.  I wanted to add some information I did not have at the time that makes this all the more interesting.

First, Sen. Daniel Clodfelter (D-Mecklenburg County), who is a co-chair of the Committee is pushing this moratorium because, we are told, he believes that municipal broadband hurts the private sector and will negatively impact state tax revenue.

This is false.

For one, as far as we can tell, a corporation’s tax payments to the state are not a part of the public record, so exactly how Clodfelter does the math escapes us.

What is known is that broadband is a job stimulator, and considering North Carolina’s current broadband ranking is 41st out of 50 states, there is nowhere to go but up.  When businesses consider opening offices or facilities in a state, broadband can be an important deciding factor.  When companies like Time Warner Cable refuse to upgrade their broadband service, few digital businesses are going to consider making North Carolina their new home.

Clodfelter has enjoyed some non-broadband-related growth in his district — namely the brand spanking new $29 million Time Warner Cable headquarters office just constructed in Charlotte, Mecklenburg County.  Ironically, the same company that doesn’t want public dollars going to their potential competitors has no problem taking dollars themselves — the expansion in Charlotte was made possible in part by a Job Development Investment Grant from the State of North Carolina.  Job growth for Time Warner Cable?  Sure.  Job growth for companies that want better broadband?  Not so much.

Time Warner Cable's new $29 million dollar complex in Charlotte was made possible in part by a Job Development Investment Grant from the state government.

Next, Committee member Rep. Pryor Gibson (D-Anson, Union Counties) is, as we pointed out in the last action alert, a Time Warner Cable Contractor — and that was an understatement.  We made a Freedom of Information Act request to obtain additional information about Rep. Gibson’s interests outside his legislative duties.  According to his 2008 Statement of Economic Interest, under Job Title/Employer, Gibson prioritizes:

1. Manager, Time Warner Cable Construction
2. Legislator, NC General Assembly
3. self-employed, builder.

Gibson lists his job titles starting with "Time Warner Cable Contractor" in this Statement of Economic Interest obtained through a Freedom of Information Request (click to see the entire document - PDF)

Yes, he lists his Time Warner Cable job before legislator.  I guess we know whose interests he represents first.

Today, I am filing a complaint with the North Carolina Ethics Commission requesting that Gibson be forced to recuse himself from conversations about cable/telecommunications and that he abstain from any votes on these matters as a direct conflict of interest.  I also have a call into Speaker Joe Hackney’s office to request that he inquire about this issue as well.

It has been two months since the groundswell of support for Google’s Fiber Optic “Think Big With a Gig” Project became the issue for some 1,100 communities across our country, all jockeying to win the search engine giant’s favor.  We need to understand what this proposed moratorium really means for the state of North Carolina.

There was no shortage of applicants in this state, all clamoring for economic boosting, job growing, innovative super fast broadband.  Greensboro, Asheville, Durham and Wilmington were all represented, fully backed by local government officials.  What do 1,100 communities know that Clodfelter doesn’t?  That high speed broadband is America’s next great game-changing infrastructure project, as important as the canal system, railroads, highways, and airports were to past generations.  It’s no surprise those with vested interests in keeping things exactly as they are would fight to stop such projects.  But our legislators should not be enabling them.

What does it mean to Google, when sifting through the thousand plus applications, to find North Carolina’s legislature throwing up hostile opposition to expansive broadband projects?  Google is not going to get into the Internet Service Provider business.  Sooner or later, Google could easily turn such demonstration projects over to a local municipality once the search engine’s public policy agenda is fulfilled.  If this moratorium passes, they can’t do that.  But nothing prohibits them from selling it off to an incumbent provider like Time Warner Cable or CenturyLink.  Both would be more than happy to accept it I’m sure, all while maintaining today’s current high prices made possible from the ongoing broadband duopoly. Then again, seeing how North Carolina seeks to clamp down on broadband innovation, Google may just decide to look elsewhere.

Keep up the good work fighting for better broadband.  Continue writing and calling legislators on the issue and please be there Wednesday to let them know we are watching and that we will hold them to a higher standard then some of them hold themselves.  Be sure to report back what you are hearing in response, and please thank and support those that choose to reject this legislation.

Here again is the information for the membership of The Joint Revenue Laws Study Committee, so get on the phones and write those e-mails!:

(Please send individual messages to members, even if the contents are essentially the same — avoid simply CC’ing a single message to every representative.)

• Sen. Daniel Gray Clodfelter (Co-Chair) Mecklenberg Daniel.Clodfelter@ncleg.net (919) 715-8331 Democrat (704) 331-1041 Attorney
• Sen. Daniel T. Blue, Jr. Wake Dan.Blue@ncleg.net (919) 733-5752 Democrat (919) 833-1931 Attorney
• Sen. Peter Samuel Brunstetter Forsyth Peter.Brunstetter@ncleg.net (919) 733-7850 Republican (336) 747-6604 Attorney
• Sen. Fletcher Lee Hartsell, Jr. Cabarrus, Iredell Fletcher.Hartsell@ncleg.net (919) 733-7223 Republican (704) 786-5161 Attorney
• Sen. David W. Hoyle Gaston David.Hoyle@ncleg.net (919) 733-5734 Democrat (704) 867-0822 Real Estate Developer/Investor
• Sen. Samuel Clark Jenkins Edgecomb, Martin, Pitt Clark.Jenkins@ncleg.net (919) 715-3040 Democrat (252) 823-7029 W.S. Clark Farms
• Sen. Josh Stein Wake Josh.Stein@ncleg.net (919)715-6400 Democrat (919)715-6400 Lawyer
• Sen. Jerry W. Tillman Montgomery, Randolph Jerry.Tillman@ncleg.net (919) 733-5870 Republican (336) 431-5325 Ret’d school teacher
• Rep. Paul Luebke (Co-Chair) Durham Paul.Luebke@ncleg.net 919-733-7663 Democrat 919-286-0269 College Teacher
• Rep. Harold J. Brubaker Randolph Harold.Brubaker@ncleg.net 919-715-4946 Republican 336-629-5128 Real Estate Appraiser
• Rep. Becky Carney Mecklenberg Becky.Carney@ncleg.net 919-733-5827 Democrat 919-733-5827 Homemaker
• Rep. Pryor Allan Gibson, III Anson, Union Pryor.Gibson@ncleg.net 919-715-3007 Democrat 704-694-5957 Builder/TWC contractor
• Rep. Dewey Lewis Hill Brunswick, Columbus Dewey.Hill@ncleg.net 919-733-5830 Democrat 910-642-6044 Business Exec (Navy)
• Rep. Julia Craven Howard Davie, Iredell Julia.Howard@ncleg.net 919-733-5904 Republican 336-751-3538 Appraiser, Realtor
• Rep. Daniel Francis McComas New Hanover Danny.McComas@ncleg.net 919-733-5786 Republican 910-343-8372 Business Executive
• Rep. William C. McGee Forsyth William.McGee@ncleg.net 919-733-5747 Republican 336-766-4481 Retired (Army)
• Rep. William L. Wainwright Craven, Lenoir William.Wainwright@ncleg.net 919-733-5995 Democrat 252-447-7379 Presiding Elder
• Rep. Jennifer Weiss Wake Jennifer.Weiss@ncleg.net 919-715-3010 Democrat 919-715-3010 Lawyer-Mom

When millions of dollars are at stake, some commercial broadband providers will stop at nothing to preserve the duopoly they enjoy across most of North Carolina.  Their formula for success — delivering the least amount of service at the highest possible price.  When communities like Wilson and Salisbury decided that formula wasn’t working for them, they embarked on their own municipally-built, fiber-based broadband networks.  It wasn’t something either community took lightly.  They asked, they pleaded, they begged for better broadband service from incumbent providers who decided what they were providing was already good enough.

The biggest shock of these providers’ lives came when both communities decided to build better networks themselves.

Now, the commercial providers who are challenged to upgrade to compete are instead spending enormous sums of money in the North Carolina legislature to put a stop to these municipal projects.  Why spend money on upgrading when you can simply ban the potential competition?

Last year, Stop the Cap! teamed up with other consumer advocates to put a stop to legislation custom-written by the cable industry and introduced by a very-compliant state legislator.  When our readers and others called to complain, some found the phone handed off to a cable lobbyist literally sitting in his office!

Your outrage over paying big bills for bad service from too few providers was heard in Raleigh, and the legislation was de-fanged and buried in a committee charged with “studying the issue.”  The legislator who introduced it resigned under an ethical cloud last fall.

Unfortunately for consumers in North Carolina, there is always someone else willing to pick up where the last one who sold his constituents down the river left off.

Our North Carolina issues coordinator Jay Ovittore, who is now working with Communities United for Broadband to promote better broadband, is here with a report about the latest developments in North Carolina and a Call to Action! for all of our readers.  Preserving successful municipal broadband projects and those working to get off the ground protects this option for every community faced with intransigent broadband providers who won’t improve service.  — Phillip Dampier

As I told everyone on Stop the Cap! last summer, they would be back.

They are, and now they’ve shown us their cards.

North Carolina’s incumbent cable and phone companies are once again trying to ram through an anti-municipal broadband bill, and their timing is designed to rush it through committee before a groundswell of consumer opposition has a chance to build.  Time is short — the bill will be taken up April 21st in the Revenue Laws Study Committee, so your immediate action is imperative!

Clodfelter

This year’s push for anti-consumer legislation comes courtesy of Senator Daniel G. Clodfelter (D-Mecklenburg County).

He reportedly wants a moratorium on all municipal broadband deployments on the alleged basis that these are bad for the private sector and will harm state tax revenue.  Hello?  Virtually every municipal broadband project underway fuels job creation as crews work to install the fiber optic networks that will come to represent an economic catalyst and job creator.  When communities no longer have to turn away digital economy jobs lost because of inadequate broadband by existing providers, that’s an economic victory for hard-pressed North Carolina, where unemployment is at 11.2 percent these days — 10th worst in the country.

The FCC’s National Broadband Plan has prioritized stimulating the deployment of ultra high-speed broadband (100/50Mbps) service to 100 million households in ten years, so why are some in our legislature standing in the way of better broadband options for North Carolina?  You need to ask them!

Just look at Wilson’s community broadband project for evidence of a broadband success story.  Wilson pleaded with providers to deliver 21st century broadband service to no avail.  So Wilson did it themselves.

Cable and phone companies howled in protest.  They even brought in their astroturfing friends from corporate-funded groups like FreedomWorks and Americans for Prosperity to try and hookwink consumers into opposing municipal broadband.

It’s just another classic case of providers not wanting to spend money to upgrade their networks to compete.  Communities like Wilson getting the broadband service they deserve are good examples of why the industry is afraid such projects could spread.

Watch what happens when a municipal provider competes for your business.  Catherine Rice of Action Audits delivered the undeniable proof at a December NC House Select Committee on High Speed Internet Access in Rural and Urban Areas hearing, showing while cable and broadband rates across the state march ever higher, they strangely don’t in Wilson, where GreenLight, the municipal alternative, keeps rates in check. Click here to download a PDF copy of the slides Rice refers to in her presentation. (11 minutes)

Some members of the legislature will stand with their constituents and vote against this anti-consumer nightmare.  Some may not be fully informed on the issues and are only hearing the telecommunications industry talking points.  For some others, I’m afraid it’s a case of following the money.

The telecommunications industry in North Carolina is very generous to their benefactors, only too willing to return the favor writing the industry’s wish-list into state law.

You will recognize some of the names from the Follow the Money series I wrote last year (read Part 1, Part 2 and Part 3).  It’s a new year, so Part 4 will follow in the coming days, updating the financial contributions of incumbents and introducing new members and how much they’ve accepted from this industry.

Ironically, one of the legislators, Rep. Pryor Allan Gibson, III works as a contractor for Time Warner Cable!  His vote will be particularly interesting to follow.

North Carolina Legislature

North Carolina Call to Action!

Phone calls are always the most effective, and they are timely coming just days before the April 21st meeting of the Revenue Laws Study Committee.  But you can also e-mail representatives (and that’s not a bad idea even if you also called).  North Carolina deserves world-class, next-generation broadband.  Don’t allow a handful of the same companies overcharging you for today’s slow service strangle your best chance for competition!

Here is a sample e-mail message to send to all of the Committee members involved:

Subject: Don’t You Dare Vote for an Anti-Municipal Broadband Bill!

Message: As a consumer, I was disturbed to hear the Revenue Laws Study Committee was prepared to vote for an industry-sponsored Anti-Municipal Broadband Bill on April 21st.  Please do not vote for this or any other bill that removes competitive choice for broadband service.  Our local communities should not be stopped from deploying 21st century fiber to the home systems other providers refuse to deliver.  Such fiber networks create jobs, keep North Carolina business competitive, and stimulate economic development, which will deliver needed tax revenue.

The same providers backing this bill that are not delivering service to unserved communities, or offer inadequate service in others, have had a decade to deliver the service municipal providers are actually providing today in our state. Instead of delivering, they’ve offered a litany of excuses and now want special legislative protections to preserve their entrenched market position.

As a consumer, I am fed up with relentless rate increases year after year.  In communities like Wilson, where a municipal provider delivers excellent service, the rate increases from cable and phone companies have stopped.  A vote for this bill guarantees we’ll be paying higher and higher cable and phone bills indefinitely, and that’s something I would definitely remember come Election Day.  Make no mistake — this proposed legislation is an obvious gift to the telecommunications industry at the expense of all of your constituents, including myself.  That’s why I am confident you will stand up and make your opposition heard to this and similar measures.

At a time when the FCC’s National Broadband Plan envisions 100 million households with ultra-fast broadband service delivering economic benefits, it’s ironic our state legislature is even considering impeding the very providers that are on track to fulfill that goal.

With 11.2 percent unemployment — the 10th worst in the country, now is not the time to put a moratorium on North Carolina’s communities considering a better future through municipally-provided broadband.

With all this in mind, I am confident you will deliver for constituents like myself and oppose these industry-backed bills.  I look forward to hearing from you soon on this issue.

For best results, use your own wording and talk about the broadband market in your community.  You can reference the excitement over Google’s fiber to the home project.

Here are the Committee members to write or call, including their district area and what they do for a living:

(Please send individual messages to members, even if the contents are essentially the same — avoid simply CC’ing a single message to every representative.)

• Sen. Daniel Gray Clodfelter (Co-Chair) Mecklenberg Daniel.Clodfelter@ncleg.net (919) 715-8331 Democrat (704) 331-1041 Attorney
• Sen. Daniel T. Blue, Jr. Wake Dan.Blue@ncleg.net (919) 733-5752 Democrat (919) 833-1931 Attorney
• Sen. Peter Samuel Brunstetter Forsyth Peter.Brunstetter@ncleg.net (919) 733-7850 Republican (336) 747-6604 Attorney
• Sen. Fletcher Lee Hartsell, Jr. Cabarrus, Iredell Fletcher.Hartsell@ncleg.net (919) 733-7223 Republican (704) 786-5161 Attorney
• Sen. David W. Hoyle Gaston David.Hoyle@ncleg.net (919) 733-5734 Democrat (704) 867-0822 Real Estate Developer/Investor
• Sen. Samuel Clark Jenkins Edgecomb, Martin, Pitt Clark.Jenkins@ncleg.net (919) 715-3040 Democrat (252) 823-7029 W.S. Clark Farms
• Sen. Josh Stein Wake Josh.Stein@ncleg.net (919)715-6400 Democrat (919)715-6400 Lawyer
• Sen. Jerry W. Tillman Montgomery, Randolph Jerry.Tillman@ncleg.net (919) 733-5870 Republican (336) 431-5325 Ret’d school teacher
• Rep. Paul Luebke (Co-Chair) Durham Paul.Luebke@ncleg.net 919-733-7663 Democrat 919-286-0269 College Teacher
• Rep. Harold J. Brubaker Randolph Harold.Brubaker@ncleg.net 919-715-4946 Republican 336-629-5128 Real Estate Appraiser
• Rep. Becky Carney Mecklenberg Becky.Carney@ncleg.net 919-733-5827 Democrat 919-733-5827 Homemaker
• Rep. Pryor Allan Gibson, III Anson, Union Pryor.Gibson@ncleg.net 919-715-3007 Democrat 704-694-5957 Builder/TWC contractor
• Rep. Dewey Lewis Hill Brunswick, Columbus Dewey.Hill@ncleg.net 919-733-5830 Democrat 910-642-6044 Business Exec (Navy)
• Rep. Julia Craven Howard Davie, Iredell Julia.Howard@ncleg.net 919-733-5904 Republican 336-751-3538 Appraiser, Realtor
• Rep. Daniel Francis McComas New Hanover Danny.McComas@ncleg.net 919-733-5786 Republican 910-343-8372 Business Executive
• Rep. William C. McGee Forsyth William.McGee@ncleg.net 919-733-5747 Republican 336-766-4481 Retired (Army)
• Rep. William L. Wainwright Craven, Lenoir William.Wainwright@ncleg.net 919-733-5995 Democrat 252-447-7379 Presiding Elder
• Rep. Jennifer Weiss Wake Jennifer.Weiss@ncleg.net 919-715-3010 Democrat 919-715-3010 Lawyer-Mom