Stop the Cap! » Events

Taxing Your Way Out of a Budget Crisis – Baltimore Cable Tax Proposal Deemed Illegal Under Federal Law

Phillip Dampier — Tue, 01 Jun 2010 03:59:19 +0000

Jim Kraft (D-District 1)

A proposal to add a monthly $4 fee to every Baltimore cable subscriber’s bill to raise money for the fiscally-challenged city has been withdrawn after the city solicitor’s office warned the legislation would violate federal law.

City councilman Jim Kraft (D-District 1) proposed the city extend the existing telecommunications tax levied on telephone lines to cable television service in a bid to raise up to $5 million dollars annually towards the $50 million required to restore funding for curtailed fire, police, and recreational facilities.

Kraft’s proposal was an alternative to a controversial four cent bottle tax on beverages that could have driven some shoppers out of the city for cheaper untaxed alternatives available in the suburbs.

Kraft called his cable TV tax proposal “a fair tax.”

“Employed or unemployed, property taxpayer or exempt from property tax — this fee is borne by all,” he wrote in a mailing to constituents.

But the proposed tax ran into the Internet Tax Freedom Act, currently extended until 2014, which bans any taxation on broadband service, a major component of today’s cable systems. The city’s lawyers also warned Baltimore could not tax home satellite service either: “Congress has specifically exempted providers of direct-to-home satellite service from collection or remittance of any tax or fee imposed by a local taxing jurisdiction.”

America’s cities continue to face unprecedented budget challenges in light of the distressed economy. Some cities are slashing services, others are raising taxes and fees to make up the difference. Baltimore in in the latter category with wide-ranging proposals to up fees and taxes for everything from the hotel room tax rate, outdoor billboard advertising, and energy to new higher fines for parking and civil violations.

The bottle tax bill is likely back on the agenda as well.

Click here to view the embedded video.

WJZ-TV in Baltimore delivered this rundown on the city’s large number of tax and fee hikes to close a $50 million shortfall. (3 minutes)

Click here to view the embedded video.

WBAL-TV ran this report over the demise of the telecommunications tax for cable television. (2 minutes)

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WNY Call to Action: Rep. Dan Maffei’s Curious Opposition to Broadband Oversight and Net Neutrality

Phillip Dampier — Thu, 27 May 2010 03:17:27 +0000

Rep. Dan Maffei (D-NY)

Rep. Dan Maffei (D-New York) has begun to worry broadband consumers in his western and central New York district.

In April 2009, when Time Warner Cable’s announced Internet Overcharging experiment was upsetting customers in Rochester, Maffei claimed he was concerned about limiting broadband usage for customers in the area. But when former Rep. Eric Massa introduced legislation to ban unjustified usage caps and consumption billing, Maffei told his constituents he wasn’t interested in Massa’s approach:

Thank you for contacting me regarding H.R. 2902, the Broadband Internet Fairness Act. I appreciate hearing from you and welcome the opportunity to respond. The Broadband Internet Fairness Act was introduced by Representative Eric Massa (NY-29) on June 16, 2009, and was referred to the Committee on Energy and Commerce. The bill would authorize the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) to review volume usage service plans of major broadband internet service providers to ensure that such plans are fairly based on cost.

When Time Warner Cable announced in April that Rochester would be used as a test market for charging Internet users based upon consumption usage, I, along with Representative Massa, opposed this policy. We helped persuade Time Warner to abandon the plan in the area. At that time, Representative Massa also introduced the Broadband Internet Fairness Act.

Other utilities, like water or electricity, charge customers based on usage, but Internet users have traditionally been charged a flat fee for unlimited access to the web. The Broadband Internet Fairness Act would require Internet Service Providers that want to implement usage-based pricing plans to go through several traditional regulatory hurdles. While I share many of the goals of Representative Massa’s legislation, I do not believe passing this stand-alone bill is the right approach at this time.

Of course broadband is nothing like water or electric utilities. In fact, Maffei’s inclusion of that reference is a classic talking point of the telecom industry. Notice they, and Maffei, didn’t mention telephone service — the one utility that provides flat rate calling for most Americans. It also happens to be the utility most comparable to broadband service!

New York's 25th Congressional District

But Maffei made a bad situation worse when he joined 72 other House Democrats co-signing a letter from Rep. Gene Green (D-AT&T), urging FCC Chairman Julius Genachowski not to fight a court decision overturning the agency’s ability to conduct broadband oversight.

The letter represented one giant talking point — the false premise that enforcing a fair, free, and open Internet with Net Neutrality would somehow stifle investment in broadband expansion. Yet AT&T was required to honor the very same principles when it merged with SBC, and managed to remain a multi-billion dollar powerhouse well positioned to expand broadband service to additional customers in its ever-growing service areas.

The fact the broadband industry is a duopoly for most Americans — one that can threaten to pull back on service if it doesn’t get its way in Washington — is just one more reason the industry requires more oversight, not less.

Yet Rep. Maffei stood alone as the only member of the western New York Congressional delegation to sign his name to the agenda of big cable and phone companies.

Perhaps the congressman has forgotten these facts which trouble broadband consumers across western and central New York:

Rochester, NY was the only city in the northeast where Time Warner sought to conduct an Internet Overcharging experiment, made possible because of limited competition in the Rochester market;
Rochester’s other broadband provider, Frontier Communications, insists on a monthly usage allowance of just 5GB per month in its Acceptable Use Policy;
Verizon FiOS has suspended expansion indefinitely and the service will never be available in most of the 585 area code where Frontier operates, and it will take years for most of the rest of his Syracuse district to see the service reach those areas;
Time Warner Cable increased its broadband rates in 2010, as did Verizon;

Green’s letter dances around the real issue — telecommunications companies are spending millions to oppose pro-consumer reforms and stop a return of oversight authority the FCC lost after a recent court decision. Without this authority, the FCC cannot implement the National Broadband Plan’s insistence that American providers not block or impede network traffic. These Net Neutral policies preserve net freedom. The FCC cannot even require that providers tell the truth about broadband speeds and include the company’s terms of service in plain English.

Western New York is a hotbed of consumer activism on broadband issues, particularly because we are actual victims of provider abuse. No one knows more than we how critical 21st century broadband is to the transformation of this region’s perennially challenged economy.

Rep. Maffei needs a reminder this is a hot button issue for consumers from Irondequoit to Manlius. Perhaps he just doesn’t fully understand what’s at stake here. You need to remind him.

We’ve included a suggested letter you can use to help write your own. For maximum effectiveness, include some of your own personal stories, challenges, and frustrations with your local broadband provider. Feel free to share yours in the Comments section.

Dear Rep. Maffei:

I was extremely disappointed to discover you signed your name on a letter written by Rep. Gene Green urging FCC Chairman Julius Genachowski not to restore oversight authority over broadband. While Rep. Green’s letter illustrates he’s mostly concerned about the well being of AT&T, Verizon, Time Warner Cable and Comcast, as a consumer I am more concerned about the broadband duopoly that exists in Rochester & Syracuse.

If the FCC does not regain its ability to oversee broadband by reclassifying it under Title II — as a telecommunications service (which it very clearly is), the FCC can effectively do nothing to stop broadband provider abuses, such as Comcast’s notorious speed throttle on customers using certain Internet websites and services. It took an FCC investigation to finally get the cable company to admit the truth — it was interfering with customers’ broadband speeds. The oversight power the agency had was just what was needed to convince Comcast to stop.

Unfortunately, a DC Circuit Court recently disagreed it had that authority and effectively stripped it away. Chairman Genachowski is simply seeking a return to the status quo before that court decision was handed down. He’s not asking to regulate broadband anything like telephone service. In fact, he’s insisted on a “light touch.” That’s better than today’s court-imposed total-hands-off reality.

By signing Rep. Green’s letter, you effectively tell us you don’t support Net Neutrality protections that guarantee providers cannot censor or impede web traffic. You also do nothing to protect consumers from other provider abuses. Considering what residents of Rochester went through last year fighting a Time Warner Cable scheme that would have tripled broadband prices for the same level of service, I’m shocked you of all people would be a supporter of big telecom’s agenda.

Telecom companies are claiming that if regulations enforcing Net Neutrality are enacted, investment will suffer and broadband expansion will be slowed. Yet AT&T was required, as part of its merger with SBC, to respect Net Neutrality for several years. The company flourished, broadband was offered to more customers than ever, and investors liked what they saw.

The record in western New York is clear — Time Warner Cable was willing to limit its customers access to broadband service, Frontier already does in its terms and conditions, and Verizon FiOS deployment has been suspended indefinitely. For too many of us, there are too few choices. In fact, the only thing we can be assured of is higher pricing and a strengthened duopoly.

I strongly urge you to remove your signature from Rep. Green’s letter and get on board with consumers like myself in your district who believe deregulation and oversight failures have given us nothing but nightmares — from Wall Street to BP’s oil spill. Let’s not make another mistake in handing cable and phone companies unfettered permission to abuse their customers.

Please get back in touch with me as soon as possible on this important matter.

Rep. Dan Maffei told constituents he was concerned about Time Warner Cable’s Internet Overcharging scheme proposed in April 2009. At a town hall meeting in Irondequoit, New York, he admitted Time Warner Cable held near-monopoly power over consumers in Rochester. What changed his tune when he signed on to Rep. Gene Green’s anti-consumer letter to the FCC? (April 9, 2009 — 2 minutes)

Rep. Dan Maffei’s Contact Information

Washington, D.C. Office
1630 Longworth HOB
Washington, DC 20515
Phone: (202) 225-3701
Fax: (202) 225-4042

Syracuse Office
P.O. Box 7306,
1340 Federal Building
Syracuse, NY 13261
Phone: (315) 423-5657
Fax: (315) 423-5669

Irondequoit/Rochester Office
1280 Titus Avenue
Rochester, NY 14617
Phone: (585) 336-7291
Fax: (585) 336-7274

[Update: 11:30pm EDT: Free Press reports Rep. Maffei accepted $29,000 in contributions from telecom companies, including Verizon, Comcast, and AT&T.]

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Audio from Toronto Internet Town Hall Now Available

Phillip Dampier — Fri, 12 Jun 2009 14:29:35 +0000

For those who tried to watch the live stream from this past Monday’s Internet Town Hall from Toronto, it was a process that demonstrated the limitations of broadband service in Canada. Evidently the hotel broadband connection was inadequate for the task, and the stream suffered ongoing video and audio problems for the duration.

An audio podcast version has now become available and is included below. Because the event runs nearly two hours, you may wish to download the audio and listen on the go. If you want to listen here, remember that the audio player will only work as long as you remain on this page.

Internet Town Hall On Canadian Broadband/Net Neutrality Issues – Toronto, June 8, 2009 (1 Hour 50 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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Live Coverage of Canada’s Open Internet Town Hall – Toronto

Phillip Dampier — Mon, 08 Jun 2009 22:38:55 +0000

Live Coverage of SaveOurNet.ca‘s National Open Internet Town Hall, netcasting from Toronto has now concluded. Unfortunately, connectivity issues at the hotel plagued the live streaming event, and a good deal of it was not available on the live stream. A recording of the presentation should be forthcoming shortly, and will be embedded in this space, when available.

Other coverage you may enjoy:

Rep. Ty Harrell Responds to Stop the Cap Reports About HB 1252

Phillip Dampier — Wed, 06 May 2009 04:20:21 +0000

[Editor's Note: Our current software does not require users to confirm their e-mail address before submitting comments on this site, although the individual purporting to be Rep. Ty Harrell did use a correct e-mail address for the representative. On the chance that the comments expressed on this site are from the representative, our reply should be taken with that understanding.]

Someone signing their name Rep. Ty Harrell and using his e-mail address left the following general comment on two articles on our site regarding the North Carolina legislation HB 1252, which is essentially a custom written bill by and for the cable and telephone industry in an effort to impede municipal broadband network development inside the state. Today, the legislation will be taken up by the Public Utilities Committee for review. StoptheCap! is calling on all North Carolina citizens to do their best to attend this meeting and be prepared to protest this legislation in the strongest possible terms, and demand that representatives vote “no” on it. At this time, only telephone calls should be made to your elected representatives. It’s too late for e-mail. This is the link for information about the group assembling for today’s Committee meeting in Raleigh. Here is information about the earlier Call to Action.

Ty Harrell on May 5, 2009 at 11:19 pm

The only thing I have asked you and others to do is trust me. As hard as it may seem, this entire bill has more to it than meets the eye. Hopefully, you’ll hear what happens with the bill tomorrow in the Public Utilities Committee.

Many thanks for your attention and consideration.

Best wishes,
Ty

Rep. Harrell, with the assumption we are reaching you personally and not someone using your name, let us reiterate that while we appreciate your consideration of our views, it is simply imperative for you to understand in no uncertain terms that the cable and telephone industry and their lobbyists are among the craftiest people around. I’ve followed this industry for more than 20 years, and their abilities continue to impress me. I assure you that unless you have an equal amount of experience in dealing with them, you are not going to outsmart them. They will outsmart you in ways you may not yet understand. The only acceptable course of action that will restore our faith in your representation of the good people of North Carolina is a withdrawal of this legislation from any further consideration. It cannot be amended in any way that will not signal a victory for the telecom lobbies who are doing everything possible to stall, impede, or prevent municipal competition. We would like to think this entire endeavor was a mistake, a misunderstanding, or simply a case of getting into the hornet’s nest you noted in some earlier statements. It’s always better not to be stung any further. Do the right thing.

If you would like to learn more about the impact of municipal broadband in small and medium sized communities across America, and how commercial providers respond to it, there is no better and more timely example that Lafayette, Louisiana. They fought with big telco and cable companies for more than five years to construct a broadband fiber network. They finally won, and so will the people of Lafayette, who will benefit from the most advanced broadband platform in the state. Their pricing? 10Mbps down/10Mbps up – $28.94, 20Mbps/20Mbps – $44.95, and 50Mbps/50Mbps – $57.95 a month!

What is the incumbent cable company (Cox) doing now that they’ve not been able to force the city to give up its project? They are competing! They’ve announced an incredibly fast upgrade of their system in the area to the latest technology, DOCSIS 3, and are going to sell the people of Lafayette a 50Mbps broadband package (for more money, but this was the first city in Cox’s service area nationwide getting the upgrade — shocking for a community not exactly in a high tech corridor.)

When a municipal broadband network goes live in a community, the commercial providers finally cough up the upgrades they’ve spent years saying “no” to. Don’t allow HB 1252 to just be the latest tool for the cable and telephone industry to use to say “no” to the people of North Carolina. Withdraw it, vote against it, or do whatever it takes to shelve it. Modifying it is simply not an acceptable option any longer.

Here is a slideshow about the Lafayette Project

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Call to Action – Act Now North Carolina Or Be Stuck With the Same Slow Choices You Have Now

Jay Ovittore — Mon, 04 May 2009 21:00:31 +0000

This Wednesday morning, May 6th at 10:00am, the Public Utilities Committee is meeting in Room 1228 of the Legislative building on Jones St. in Raleigh to vote on HB 1252. HB 1252 is the “Level Playing Field” bill, sponsored by Rep. Ty Harrell (D-Wake County), that would forever tie the hands of municipalities from ever offering better, faster and cheaper broadband Internet for their residents. The city of Wilson already offers such a service called Greenlight. After looking at what they offer for speeds and pricing, it will be understandable if you need a few moments for the anger over what you pay the “other guys” to dissipate and for your composure to return.

I am assembling a small army of outraged consumers across North Carolina to attend this critically important meeting and make our views known about HB 1252, which at its core screams anti-competition. Everyone in North Carolina who cares about the cap issue, metered pricing, or municipal broadband needs to attend this meeting and show our feelings. Municipal broadband is the safety valve we need to combat usage caps, price gouging, and rationed Internet.

Don’t be the hamster on the wheel spinning around and around in the cage current providers have constructed for our broadband service. We deserve better, and we can make a difference! Cable and telephone providers refuse to make the upgrades we demand and deserve. Without competition, why spend the money to upgrade? Let them get away with this, and you can be assured of slow speeds and bad service indefinitely.

Make an investment in yourself and your community and come to Raleigh this Wednesday morning. Let’s demonstrate once again that organized consumers do not have to sit back and simply take what they give us.

When: Wednesday, May 6 10:00AM

Where: North Carolina Legislature Building, 16 West Jones Street, Raleigh (Here is a Google map of the area.) Room 1228

Additional Information: Be sure to follow any comments left on this article for last minute updates/information. There is also a Facebook Group to oppose this bill and get late-breaking news and developments.

Jay Ovittore lives in North Carolina and is coordinating a pushback against corporate sponsored protection bills like HB 1252 and SB 1004 in the state legislature.

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Rally Images – Rochester, New York

Phillip Dampier — Sat, 18 Apr 2009 20:51:24 +0000

"Hey Time Warner - Educate This!"

Here are some pictures from the rally this afternoon at Time Warner in Rochester, New York. Click the individual images to enlarge them if you wish. Courtesy: Jerry, who sent them our way.

"Give Us Gigabytes Or Give Us Death!"

Time Warner Providing a Friendly & Inviting Image

Every Entrance But One Was Blocked Off, With Temporary Signs Galore

A Lot of Customers Probably Figured They Were Closed

In Front of the Employee Entrance, Which Time Warner Blocked

Protesters Extending Beyond the Building

Protesters En Route

Walking Down Mt. Hope Avenue

In Front of Time Warner

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Back in Business: And Protest Notes

Phillip Dampier — Sat, 18 Apr 2009 18:54:18 +0000

I managed to get down to the rally site at Highland Park with the plan of zipping down to the cable store to swap cable modems and be across the street in time for the arrival of the walking protest group. When I arrived at the cable store, Wilfred Brimley was standing at the bifurcation point of the parking lot, shooting dagger stares at everyone. Time Warner security. In addition to having all but one entrance blocked off with cones and Time Warner trucks backed end to end (were they expecting Hezbollah?), someone got out the FedEx Kinko’s card and ran up a dozen “private property – for business customers only” signs and planted them all around the entrances.

I entered the cable store, which had another security guy sitting at his desk, and one family waiting for service. I was in and out in five minutes with a replacement cable modem.

Wilfred was still glaring in my direction. I got back into the car and parked across the street and waited. Within 10 minutes, the 30+ protesters arrived (when people assume the matter was resolved with Senator Schumer’s visit, it does have a tendency to reduce turnout until people become re-engaged), and more security turned up outside of the building. The group then ended up on the sidewalk in front of Time Warner and spent about an hour waving signs and accepting waves and honks from passersby. I shook the hand of one Time Warner employee who came out to say hello. As I’ve always said, I don’t have any issues with local employees, or even management. They play the cards they were dealt.

Just prior to leaving, I get a phone call on my cell phone from … Time Warner. They were expediting my service call to this afternoon and asked if I would be home to receive them. I asked the lady calling if she could see me waving at her from the sidewalk. Upon reaching home, a Time Warner repair truck arrived several minutes later and, it seems, found that the new modem may have done the trick. He also checked the signals on the pole and changed a fitting, and we seem to be back in business.

Also as I’ve always said, Time Warner delivers excellent service to their customers, and the service crews are top notch. That’s all the more reason why we want to fight to keep the excellent service we’ve had for years. We just want to pay a reasonable and rational price for it.

The rally, by the way, attracted Channel 8/31, R-News (who didn’t have far to go), and I was told Channel 10. The Democrat & Chronicle was also there. I want to thank the rally organizers for their efforts and work on this. We need these kinds of public events to help keep focus on these issues, and have a chance to make connections with each other to stay engaged. If anyone has video, pictures, etc., please let me know. I will arrange to have it embedded here for people to see.

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Rally Reminders – Today! – Greensboro & Rochester

Phillip Dampier — Sat, 18 Apr 2009 06:02:16 +0000

Date: Saturday, April 18, 2009
Time: 11:00am – 5:00pm
Location: Time Warner Cable
Street: 1813 Spring Garden St‎
City/Town: Greensboro, NC

Date: Saturday, April 18, 2009
Time: 11:00am – ?
Location: Highland Park, Rochester, NY – Corner of Mt. Hope/Robinson Drive at 11:00am.
Speakers begin talking at 11:30am.
Marching to 71 Mt Hope at 12:00pm.

More details on Rochester rally.

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Call to Action! Greensboro Time Warner Protest Saturday

Phillip Dampier — Wed, 15 Apr 2009 17:00:30 +0000

Greensboro, North Carolina

If you are in the Greensboro area, please consider attending a peaceful public protest against unwarranted usage caps this Saturday. The event runs at the same time the Rochester protest will take place.

Date: Saturday, April 18, 2009
Time: 11:00am – 5:00pm
Location: Time Warner Cable
Street: 1813 Spring Garden St‎
City/Town: Greensboro, NC

Whether or not you can attend, please also consider contacting your congressmen and protest the outrageous rate increase this represents:

Congressman Brad Miller (336) 574-2909
Congressman Howard Coble (336) 333-5005

The Greensboro City Council should also hear from you on this issue.

You can obtain additional information on this protest event on Facebook.

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