Corporations Flee ALEC When the Lights Cut On, But AT&T Stands Its Ground

Phillip Dampier April 10, 2012 AT&T, Editorial & Site News, Public Policy & Gov't, Video Comments Off on Corporations Flee ALEC When the Lights Cut On, But AT&T Stands Its Ground

Stop the Cap! has written extensively about the American Legislative Exchange Council’s pervasive influence on state telecommunications policies long before Trayvon Martin and Florida’s “Stand Your Ground” law put a spotlight on the shadowy corporate-backed group in the national media.

ALEC’s mission is clear.  It acts as a go-between between corporate interests who customize business-friendly state legislation in their favor and the legislators willing to introduce those bills as their own. ALEC provides the cover some legislators need to protect their image in the public eye.

A handful of legislators in safe districts are bold enough to openly admit introducing legislation written by a company like AT&T.  Take Kentucky Republican Sen. Paul Hornback.  He introduced a deregulation measure in Kentucky’s state Senate that would do away with universal landline service and almost entirely deregulate AT&T’s operations in Kentucky.  When the media found out Hornback introduced legislation AT&T actually wrote, he didn’t seem to mind one bit and doubled down on the apparent conflict of interest.

Sen. Paul Hornback (R-AT&T)

“You work with the authorities in any industry to figure out what they need to move that industry forward,” Hornback said, defending his bill that would do exactly that, at the expense of Kentucky consumers facing rate hikes AT&T has pushed in other states where similar measures were passed.

Hornback is the exception to the rule.  For more timid legislators concerned about their next election campaign, ALEC is only too happy to provide cover.

When ALEC’s connection to Florida’s controversial “Stand Your Ground” law was exposed, it swept the secretive group into the Martin media tornado.  When reports surfaced connecting the dots between ALEC and some of America’s largest corporations, Coca-Cola, Kraft Foods, Intuit, and Pepsi fled ALEC’s membership roster.  No soft drink company wants to be connected to a controversial Florida gun law.

First Coca-Cola and Kraft Foods, Now AT&T

Today, Color of Change, a group dedicated to amplifying the voice of African-Americans to make government more responsive to minorities set its sights on AT&T, one of ALEC’s most prominent members.

They have a major fight on their hands.  Few corporations have used ALEC as effectively as the descendant of Ma Bell.  AT&T’s enormous lobbying machine has frequently used ALEC to help introduce deregulation measures in states across the country.

“Even after we wrote AT&T to let them know that more than 85,000 ColorOfChange members have asked that they disassociate themselves from ALEC, the company has remained silent,” says Color of Change. “It’s clear that they think we will just go away.”

Throwing away their membership in ALEC would be a major blow to AT&T’s lobbyists who are well-connected inside the group. AT&T has several leadership roles within ALEC’s various state chapters:

ALEC State Chairs Affiliated With AT&T

  • Arkansas:
    — Ted Mullenix, AT&T
  • California:
    — Pete Anderson, AT&T
  • Connecticut:
    — John Emra, AT&T
  • Louisiana:
    — Daniel Wilson, AT&T
  • Mississippi:
    — Randal Russell, AT&T
  • Texas:
    — Holly Reed, AT&T

How do these ALEC-involved lobbyists influence elected officials?  They wine and dine lawmakers and their families, encouraging them to introduce legislation favorable to AT&T.

Everyone Knows Randy Russell – AT&T’s Go-To-Guy in Mississippi

Beckett

AT&T lobbyist Randy Russell has been representing the interests of Big Telecom in Mississippi for more than a decade.  Originally registered as a lobbyist for AT&T predecessor BellSouth, Russell today also serves as ALEC’s state chairman in the Magnolia State.

When he isn’t spending his time in the state capital — Jackson — he’s wining and dining lawmakers who might be future supporters of AT&T’s business agenda in the legislature.

Lucky for AT&T Russell found Rep. Jim Beckett (R-Bruce).  And what a find.  Beckett is in the catbird seat, serving as chairman of the House Public Utilities Committee — the oversight committee responsible for ensuring that when someone in Mississippi picks up a phone, there is actually a dial tone.

Unfortunately for Mississippi consumers Beckett has AT&T’s Russell on his speed dial.

The Cottonmouth Blog discovered both men have spent a lot of time together:

It seems that Russell and AT&T picked up the food tab for Rep. Jim Beckett and his wife at the ALEC meeting in at the Westin Kierland Resort in Scottsdale, Ariz. from November 30 to December 2, 2011.  AT&T also paid for a few rounds of golf for Rep. Beckett while there.  All said and done, AT&T paid $565.39 to cover expenses for Rep. Beckett and his wife on their three day trip to Scottsdale.

But that’s not all.  AT&T also picked up the tab for $151.70 worth of food and tickets while Rep. Beckett and his wife were at the Spring ALEC meeting in Cincinnati, OH in late April of 2011. AT&T also paid $22.62 for food for Rep. Beckett and his wife while he attended the 2011 Summer ALEC meeting in New Orleans.

The total amount AT&T gave to Rep. Jim Beckett and his wife in 2011 through Randy Russell?  $876.85.  The names of the Becketts appear a total of 36 times in AT&T’s 2011 lobbying report, most of it while the Becketts are at ALEC retreats.

AT&T also helped more directly with $2,500 in campaign contributions to Beckett’s campaign fund.  What did all of AT&T’s money and travel vouchers buy them?

Dialing for Deregulation

House Bill 825 — ‘The AT&T Total Deregulation Act’: A bill introduced by none other than Rep. Beckett that would effectively strip what remaining oversight exists over AT&T’s operations in Mississippi.  It’s a bill very familiar to Stop the Cap!, because it includes all of the usual “bullet points” found in ALEC’s own legislative database — all of enormous interest and importance to AT&T.

Northern District Public Service Commissioner Brandon Presley, who deals with consumer complaints about AT&T’s service in the state, effectively called HB 825 an unmitigated disaster for ratepayers from Corinth in the north to Biloxi in the south:

[…] House Bill 825 would totally strip the PSC of any authority to hold AT&T accountable for rate increases and lousy landline and cell phone coverage. Presley said the bill was requested by AT&T as retaliation against the PSC for denying a rate increase and for complaining of poor cellular and residential phone service. The PSC won a case in the Mississippi Supreme Court to limit charges to customers after AT&T appealed the PSC’s ruling.

[…] Presley said the Legislature passed the first phase of deregulation in 2006 and since then complaints to the Commission about billing errors, poor service and the like have risen from 1,735 in 2006 to 4,361 in 2011 an increase of over 150%. “This is evidence enough of why this bill is bad for consumers.”

[…] Along with removing all of the Public Service Commission’s authority to investigate abuses, extortion and customer complaints, House Bill 825 also removes the Commission’s authority to designate conditions for AT&T’s receiving of millions in federal funds to promote rural cell phone service. Presley said the Commission’s authority to place conditions on those dollars has been the main tool to increase cell phone coverage in rural counties. “Rural Mississippi’s interests are gutted in this bill.” Presley said.

Cottonmouth reminds readers who may not be familiar with Mississippi that Beckett’s home district — Bruce — puts his AT&T ghost-written legislation at odds with his own constituents:

“Bruce [isn’t] exactly urban,” the blogger writes. “Matter of fact, anyone who has driven on Highway 7 right outside of Bruce and tried to make an AT&T cell phone call could tell you just how much this bill will hurt Rep. Beckett’s constituents.”

Even Beckett’s fellow Republicans serving the state PSC couldn’t stomach the legislation that guaranteed even more customer complaints.  Southern District Public Service Commissioner Leonard Bentz issued his own press release attacking the bill:

“This is a very bad bill for consumers in Mississippi,” Commissioner Bentz stated. “Even though AT&T will tell you that the oversight that we [PSC] have is limited, the little we do have is piece of mind for the consumers.”

“You don’t have to think very long to understand why this bill is bad. Think back to last time you called  in a problem to AT&T and the lack of customer service you received. This bill would make it worse. It is important to understand AT&T will lead you to believe this bill will affect only a small number of customers, but that is not so. As it stands right now, all customers with AT&T have the ability to file complaints with the Public Service Commission, and have the PSC on their side to help them navigate the system. The bill clearly states customer appeals will be removed from the PSC jurisdiction.

The third commissioner on the PSC, Republican Central District Public Service Commissioner Lynn Posey, hoped HB 825 would simply go away, seeking to bury it in a “study committee.”

Despite the universal opposition to the measure among those tasked with overseeing the state’s phone companies, Beckett decided AT&T knew better and quickly pushed HB 825 through his committee.  What makes Beckett an expert in telecommunications policy?  Not too much: He calls himself a lawyer on his biography page, but he’s also the owner of Beckett Oil & Gas.

Despite efforts by consumer advocates, a slightly-amended measure passed both the Republican-controlled state House and Senate and this week will be sent to the desk Gov. Phil Bryant for his signature.

“The small telephone companies in this state, many of them are opposed to this,” said Rep. Cecil Brown (D-Jackson). “If it hurts their business, it’s going to hurt your local communities. That’s all there is to it.”

The price the phone company paid to get Rep. Beckett on Team AT&T?: $2,500 + ALEC-sponsored free meals and travel.

[flv]http://www.phillipdampier.com/video/KTTC Rochester ALEC 2-3-12.mp4[/flv]

KTTP in Rochester, Minn. explores the influence of state lobbyists working with ALEC who push lawmakers to introduce legislation corporations wrote themselves.  (4 minutes)

Bizarre Political Fight Threatens Community Wi-Fi System in Tornillo, Texas

Phillip Dampier April 9, 2012 Consumer News, Public Policy & Gov't, Rural Broadband, Video, Wireless Broadband Comments Off on Bizarre Political Fight Threatens Community Wi-Fi System in Tornillo, Texas

Vranish says the community's free Wi-Fi has to go because of a "complaint-happy climate." (Image: KVIA-TV)

A bizarre political dispute involving board members of the Tornillo, Tex. Independent School District threatens to shut off community-owned Wi-Fi service for more than 500 subscribers.

The Tornillo school board is no stranger to controversy, and evenly divided factions often create at atmosphere some local residents describe as the best political theater in town.

Unfortunately, the town’s Internet access may be a casualty of the school board’s latest dispute.

Tornillo, a small community of 1,600 in southeast El Paso County, needs Internet access.  With 36.8% of the population below the poverty line, commercial providers have shown little interest in selling broadband to the community, more than 99% of which are Latino-American.

Since 2004, the local school district has provided free wireless access for a one-time setup fee of $275.

Now school Superintendant Paul Vranish has said he will shut off the service because a majority of the school board failed to vote for a resolution that would pay for any legal fees incurred by school district employees respecting any potential complaints about the service.

Vranish blamed a local “complaint-happy climate” for necessitating legal protection, but some local residents suspect the real issue is a political dispute between Vranish, the rest of the school board, and Tornillo resident Ricardo Hernandez, who separately filed an unrelated complaint against Vranish with the Texas Education Agency.  Two state agencies are presently conducting investigations into allegations Vranish misused district funds for personal gain.

Hernandez, according to the resolution, has “questioned a former employee as to the legality” of the Wi-Fi service. Vranish apparently is unwilling to find out whether the service is legal or not, declaring he would simply terminate the service at an unspecified future date.

“It’s a simple personal and political dispute that may well cost Tornillo its Internet access and leave 500 residents in the dark, all because Mr. Vranish thinks the community will turn against Mr. Hernandez if the service does close down,” writes Maria, a local Tornillo resident. “What are these people hiding because this is certainly not about Wi-Fi.”

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KVIA El Paso Tornillo ISD To Discontinue Free Community Wireless Internet 4-4-12.mp4[/flv]

El Paso’s KVIA sought answers to the Wi-Fi dispute, but found themselves chasing the school district superintendent down a hallway, unwilling to address questions about the matter.  (3 minutes)

Verizon Will Cease Selling Standalone DSL Service May 6th; Voice With DSL Only, Please

Verizon Communications will stop selling DSL broadband-only service to its customers May 6th in what the company is calling an effort to control costs “enabling us to continue providing competitively priced services to existing and new customers.”

Broadband Reports readers first reported receiving written notice of Verizon’s plans to discard “naked DSL” service, although existing customers who don’t move or make any changes to their account will be able to keep the broadband-only service for now.

Verizon provides the details:

Beginning May 6, 2012, we will no longer offer High Speed Internet without local voice service on the same account.

What does this mean for you?

  • If you currently have High Speed Internet without local voice service on the same account, there is no action required on your part to continue enjoying your internet service. You will not experience any disruption of service.
  • Prior to May 6, 2012, you can still make speed upgrades or downgrades to your existing service.
  • Prior to May 6, 2012, you can receive bundle discounts by adding DIRECTV service or Verizon Wireless service to your current internet service.

What this means if you change or disconnect your High Speed Internet Service as of May 6, 2012 or after:

  • You can make changes to and retain your Verizon High Speed Internet Service on or after the above date, by adding Verizon’s local voice service to the same account.
  • If you are moving your service from one location to another on or after the above date, you may subscribe to internet service at your new location if you also subscribe to Verizon’s local voice service on the same account.
  • If you choose to subscribe to additional Verizon services you could be eligible for a bundled discount when you also subscribe to Verizon’s local voice service on the same account.

There is speculation Verizon is eliminating its DSL-only service in an effort to boost revenue and push subscribers in FiOS-enabled areas to Verizon’s fiber optic network.  A decade earlier, many phone companies fought to avoid selling “broadband-only” DSL service without a voice landline because of revenue losses.  Landline customers continue to drop voice service from traditional phone companies at an alarming rate — choosing competing cable or Voice over IP service or a cell phone.  By requiring voice service, Verizon can boost average revenue from each customer, whether those customers want the service or not.

Customers who currently subscribe to broadband-only DSL service from Verizon are advised that virtually any account change of significance can disqualify them from continuing with the service.  That includes address changes and speed adjustments.  Stop the Cap! recommends customers make any changes prior to May 6th.

Large sections of Verizon’s service area are not FiOS-eligible,  so current DSL customers with no other broadband choices may find themselves stuck with adding voice service. Verizon sells Basic Home Telephone Service with no local calling allowance at prices ranging from $7 in some communities to $16 or higher in others, excluding the FCC-mandated line fee, which runs an extra $6.50 a month.

One thing Verizon’s higher bills will accomplish is making Verizon Wireless’ new 4G LTE Home Fusion wireless broadband service look slightly more price competitive.  If a Verizon landline customer has to pay for both voice and data service, paying $60 a month for 10GB of wireless broadband may not seem that expensive in comparison.

HissyFitWatch: Frustration XFINITY – Comcast’s Nationwide Sporadic E-Mail Outage

Phillip Dampier April 9, 2012 Comcast/Xfinity, Consumer News, HissyFitWatch 1 Comment

Some Comcast customers might have thought they were losing their minds when e-mail user names and passwords kept failing with errors like “username and password do not match” even though customers were certain they did.  Our reader David dropped us a note late last night to say Comcast’s ongoing e-mail problems created quite a stir on the company’s customer support forum.

Customers have reported the issue sporadically for weeks, and many are unhappy about the perception Comcast has a policy of  ‘blame the customer first and don’t assume responsibility unless absolutely necessary.’

"I could have sworn the password was right!"

One customer:

They assume the customer is wrong and stick to that script no matter what, even when Signature Support states the customer’s PC is fine and the issue is on the provider’s network.

I spent hours (and $50 w/Signature) trying to get anyone to listen to me. I escalated and escalated until I was told there was no one higher, which we all know is incorrect, there are plenty of people higher than the Tech Support Supervisors. The way Comcast ignores proof is just unacceptable.

A Comcast support representative identified only as “Jordan” reports the problem was, indeed, Comcast’s responsibility:

It looks like we found a database replication issue that was not keeping passwords in sync across our multiple platforms.  At this point, the issue is resolved and all systems are working properly.

So for those that have been resetting their passwords in an effort to fix the issue, it should be set to the last one used.  If for some reason that does not work, please reset your password one more time to ensure what you think is your “new” password is your current password.  Obviously, you’ll then need to update any email programs, mobile devices, etc. with the new password.

Exclusive: Frontier Communications Has Plans for AT&T U-verse for Landline Customers

Stop the Cap! has learned Frontier Communications is laying the groundwork to upgrade selected areas of its network to deliver fiber-to-the-neighborhood service to some of its customers, perhaps as early as the last quarter of 2012.  Documents obtained by Stop the Cap! indicate the company is negotiating with AT&T to license U-verse technology to deliver the service.

The documents suggest Frontier’s 2011 negotiations with AT&T to resell mobile phone service to Frontier customers have now expanded to include the development of improved broadband at a cost less likely to antagonize Wall Street and the company’s investors.

Sources familiar with Frontier’s operations tell Stop the Cap! although the company will continue to support Verizon-acquired FiOS fiber-to-the-home networks in Indiana and the Pacific Northwest, Frontier plans to rely on less-expensive alternatives for the rest of its service areas and has no plans to further expand the FiOS branded fiber-to-the-home service.

For the most rural customers, Frontier appears ready to partner with HughesNet to resell a satellite broadband product to customers considered unsuitable for basic DSL service.  Frontier will continue to invest and upgrade its traditional 1-3Mbps ADSL service in rural states like West Virginia, Idaho, Nevada, and South Carolina.  The company is also planning to upgrade selected cities to VDSL — a more advanced form of DSL needed to support a U-verse offering.  Perhaps one major target for such an upgrade is Frontier’s largest service area — Rochester, N.Y., where Time Warner Cable has systematically picked off Frontier’s landline customers for years with offers of faster broadband speeds and better package pricing.

Frontier's headquarters in Rochester, N.Y.

Frontier’s insistence customers don’t need faster broadband speeds, a statement made repeatedly by Frontier Rochester general manager Ann Burr, has cost the company market share, especially for high speed Internet service.  Although Frontier claims to offer speeds up to 10Mbps in Rochester, the company only manages to deliver 3Mbps in some of the city’s nearest suburbs.

An upgrade to U-verse, while not as technologically advanced as fiber to the home service, would help Frontier defend its position in more urban markets, especially as cable companies upgrade their own infrastructure to market faster broadband speeds.

AT&T U-verse sells broadband at speeds of 3, 6, 12, 18, and 24Mbps.  Time Warner Cable, Frontier’s largest competitor in upstate New York, sells speeds of 3, 10, 20, 30, and 50Mbps.

Frontier Communications has been preoccupied integrating its newest customers, acquired from Verizon Communications in 2009, with their existing IT and operations systems.  The company recently touted it completed transitioning former Verizon operations, financing, and human resources with its own information technology network nine months ahead of schedule.

Frontier has been reorganizing some of its internal departments in preparation to launch several aggressive initiatives in 2012, especially in its efforts to roll-0ut more competitive broadband — considered a landline lifesaver —  in areas where the company has lost a lot of business to its cable competitors.  The company also intends to spend tens of millions upgrading its regional and national broadband infrastructure and continue extending DSL service to presently unserved rural areas.

Another planned improvement is an overhaul of Frontier’s website, which has brought complaints from customers for delivering inaccurate information, making online bill payment cumbersome, and being difficult to navigate.

Documents obtained by Stop the Cap! also reveal the company has made progress on its plans to pitch AT&T cell phone service to Frontier customers.

Frontier signed a resale agreement with AT&T last fall and is on track to begin limited trial offers of AT&T cell phones, smartphones, and tablets — with full access to AT&T’s network of 29,000 Wi-Fi hotspots during 2012 with a more widespread rollout in 2013.  Frontier plans to offer customers the option of a single bill for Frontier and AT&T services.

Frontier’s Karen Miller told Stop the Cap! the company had no comment about today’s story.

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