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Broadband Industry Pushing for Industry Version of Net Neutrality

A group largely funded by the telecommunications industry is among the latest to call on Congress to pass net neutrality legislation, just as long as the cable and phone companies that have fiercely opposed net neutrality as we know it get the chance to effectively write the law defining their vision of a free and open internet.

Broadband for America (BfA) has long pretended to represent the interests of consumers. It has tried to steer clear of partisan politics by representing itself as a bipartisan organization, claiming that since its formation in 2009, the Broadband for America coalition “has included members ranging from consumer groups, to content and application providers, to the companies that build and maintain the internet. Together these organizations represent the hundreds of millions of Americans who are literally connected through broadband.”

In this spirit, BfA has given top priority to adopting a new, bipartisan, federal net neutrality law that would eliminate the regulatory uncertainty changing administrations have introduced through agencies like the FCC.

The telecom industry shuddered under the Obama Administration’s FCC with Thomas Wheeler as chairman. Wheeler pushed for bright line net neutrality rules that cut off the industry’s ability to toy with paid fast lanes on the internet, potentially costing telecom companies billions in future revenue opportunities. Wheeler backed his regulatory authority by using Title II regulations that have withstood corporate court challenges since the 1930s, and made clear that authority also extended to blocking or banning future creative monetization schemes that unfairly favored some internet traffic at the expense of other traffic.

The incoming Trump Administration discarded almost every regulatory policy introduced by Wheeler through its appointed FCC chairman, Ajit Pai. With Republicans in firm control at the FCC, in the White House, and in Congress, the broadband industry and its political allies feel safe to draft and pass a new federal law that will give companies regulatory certainty. One proposal could potentially permanently remove the FCC’s future ability to flexibly manage changing broadband industry practices.

BfA’s “pro net neutrality” campaign directly targets consumers through its website while also pretending to represent their interests. It is a classic D.C. astroturfing operation — fooling unwitting consumers into pushing for policies against their best interests. BfA claims it supports “policies that align with the core principles of an open internet: no blocking, no throttling, no discrimination and most importantly, ensuring all consumers have access to internet. Further, despite state efforts, only Congress maintains the power to regulate the internet.”

Broadband for America’s campaign to block this legislative maneuver actually helps net neutrality opponents.

Since no phone or cable company in the country is seeking to block, throttle, or discriminate against certain websites, passing a law that prohibits this is not controversial. But BfA does not mention other, more threatening practices ISPs have toyed with in recent years that would be banned by robust net neutrality rules. At the top of the list is “paid fast lanes,” allowing preferred content partners to get preferential treatment on sometimes clogged internet pipes. As past controversies between Netflix and Google over interconnection agreements illustrate, if an internet provider refuses to continually upgrade traffic pipelines, all traffic can suffer. With paid prioritization, some traffic will suffer even more because of preferential treatment given to sponsored traffic. The industry does not call this throttling, and some ISPs have blamed content providers for the problem, suggesting Netflix and YouTube traffic unfairly takes a toll on their networks.

BfA also objects to state efforts to bring back net neutrality, claiming such regulatory powers only belong in the hands of the federal government (especially the current one). It is no coincidence BfA’s beliefs and policies mirror their benefactors. While claiming to represent the interests of consumers, BfA is almost entirely funded by: AT&T, CenturyLink, Charter, CTIA – The Wireless Association, Comcast, Cox, NCTA – The Internet & Television Association, Telecommunications Industry Association (TIA), and USTelecom-The Broadband Association. The only major American telecom company not on this list is Verizon, but their interests are represented by USTelecom, an industry-funded lobbying group that backs America’s top telephone companies.

Broadband for America shares a list of some of its members — all a part of the cable, wireless, and telephone industry.

Under the guise of the midterm elections, BfA issued a new call for federal legislation enforcing the telecom industry’s definition of net neutrality, and not just on telecom companies. BfA also wants regulation of “edge providers,” a wonky term that means any website, web service, web application, online content hosting or online content delivery service that customers access over the internet. In reality, the only edge providers the industry is concerned with are Apple, Amazon, Google, Microsoft, and Facebook — companies that often directly compete against telecom company-backed content ventures and lucrative online advertising. Ironically, many Republicans that have strongly argued for deregulation have supported imposing new laws and regulatory oversight on some of these companies — notably Google and Facebook. Amazon joined the list as a result of President Trump’s ongoing feud with Jeff Bezos, Amazon’s CEO and owner of the Washington Post.

Backing the BfA’s lobbying push for a new net neutrality law are results from a suspect BfA-commissioned (and paid for) study by a polling firm that claims “87 percent of voters ‘react positively to arguments for a new legislative approach that sets one clear set of rules to protect consumer privacy that applies to all internet companies, websites, devices and applications.’” A full copy of the study, the exact questions asked during polling, and more information about the sampling process was not available to review. Instead, the conclusions were posted as an opinion piece by Inside Sources, a website that provides D.C. strategy, public relations, and lobbying firms with a free home to publish OpEds on behalf of their clients. Newspapers are allowed to reprint Inside Sources wire service content for free, sometimes without full disclosure of the financial arrangements behind the studies or author(s) involved.

The BfA campaign for a federal net neutrality law is not in isolation. The telecom industry has been on an all-out push for a new net neutrality law since Ajit Pai led the campaign to repeal the FCC rules. The industry’s campaign for pseudo-net neutrality has even won over some in the media like the editorial board of the Washington Post, that published its own OpEd in early October calling Wheeler’s use of Title II authority a regulatory overreach. The Post also has no patience for lawsuits being filed by telecom companies and the Justice Department against the state of California after passing its own statewide net neutrality law. The industry pushback in court is part of the Post’s argument for a new national law to ‘end confusion’:

The fight over net neutrality today can be reduced to a single sentence: Everyone is suing everyone else. Congress should step in.

The Justice Department said Sunday it will take California to court over its law requiring Internet service providers to treat all traffic equally. Those ISPs were already primed to sue states on their own. And California is one of more than 20 states suing the Federal Communications Commission over its repeal of the Obama administration’s rules. “We’re not out to protect the robber barons. We want to protect the people,” California Attorney General Xavier Becerra (D) told us.

The FCC abdicated its responsibility on net neutrality when it repealed the old rules with no adequate replacement. Now, without setting forth its own rules, the federal government is seeking to block states from creating their own. That may be frustrating to Americans who want an Internet where providers do not dictate what information reaches them and how fast. But a nationwide framework governing net neutrality would be preferable to a patchwork of state regulations establishing local regimes for systems that transcend borders. And creating that framework is up to Congress.

But not all are confused. California resident Bob Jacobson defended his state’s interests in a rebuttal to the Post’s editorial:

Absurd reasoning emanating from the nation’s capital of corruption, Washington, DC. California has always led the nation — including the Federal government — in the sensible, productive regulation and consequent growth of its telecom and information economy, now the world’s largest. The Moore Universal Telecom Services Act, passed in reaction to the breakup of the old AT&T, is still the nation’s only comprehensive, progressive telecom policy, its success reflected in California’s robust technological and social infrastructure. Rather than supersede California’s policies, our national and other state legislature’s and regulatory agencies should learn from and adapt them to better serve equally all the American people. (And get rid of that mockery known as the Trump FCC.)

Verizon Quits ALEC After Group Hands Microphone to Right-Wing Provocateur David Horowitz

Down one big member — Verizon

Verizon has quit the American Legislative Exchange Council (ALEC), a corporate funded alliance between big business and Republican state lawmakers, after right-wing activist David Horowitz used a guest appearance at the 45th ALEC Annual Meeting in New Orleans to launch into a tirade against opponents of President Donald Trump, claiming Democrats are socialists bent on attacking traditional American values.

To rousing applause from many of the 1,500 legislators and lobbyists in attendance, Horowitz used two speeches to attack the LGBTQ community, people of color, public education, feminism, gender equality, and the rights of women to seek independent access to reproductive healthcare.

Specifically, Horowitz claimed public schools are “indoctrination and recruitment centers for the Democratic party and its socialist left” and that “school curricula had been turned over to racist organizations like Black Lives Matter and terrorist organizations like the Muslim Brotherhood.” On a later panel, Horowitz told the audience Trump had not gone far enough attacking his enemies, and defended the president’s remarks calling a woman “a pig.” Those who disagreed were called “communists” by Horowitz.  He also argued the United States could only have been founded by Protestant Christians.

Horowitz speaks at ALEC conference in August 2018.

The incendiary remarks are nothing new for Horowitz, who repeatedly called President Barack Obama “a secret Muslim” and sponsors a website that claims Muslim migrants are carriers of infectious disease and predators with a “violent lust for ‘white’ women.”

Rep. Chris Taylor (D-Wisc.) attends ALEC events often to learn more about what the opposition is doing. Her observations from this year’s conference reflect ALEC in disarray, as the formerly unified, corporate-focused group is becoming more fragmented as emboldened right-wing activists demand a voice at the table.

They want state’s rights, except when they don’t. The same contradiction is evident with their struggle with local control–sometimes they like it, sometimes they don’t. The defining factor is whether these levels of government promote the far-right ALEC agenda. It is getting harder and harder for ALEC to ignore these internal contradictions.

And there are visible cracks in ALEC world. Collectively, this was the messiest and least disciplined ALEC conference I have attended since 2013. In the energy task force, presentations were all over the place. A natural gas and electricity supplier went off script by openly discussing the billions in subsidies the oil and gas industry receives. There was silence in the crowded task force room, filled with fossil fuel producers and lobbyists.

[…] In the Health and Human Services task force, the Goldwater Institute and Buckeye Foundation were in a tizzy because the Affordable Care Act (ACA) was still in existence and the left seemed to win that war, at least for now. How could it be, they moaned, when Republicans are in charge of EVERYTHING? They whined that the “debacle of last year was horrible” and that Congress wouldn’t touch another repeal with a 10-foot poll. So, 100 conservative groups came together to propose an alternative plan that guts the ACA, again. But the list was messy and confusing, and even the presenters seemed doubtful their plan would ever succeed.

But the biggest disaster I have ever seen at an ALEC conference was on a panel about the Convention of States (COS) project. COS is mobilizing in states to call an Article V Constitutional Convention for the purposes of amending the federal constitution by passing a balanced budget amendment, term-limits for federal judges, and who knows what else. One of the key speakers was right-wing provocateur David Horowitz. Horowitz is listed in a Southern Poverty Law Center (SPLC) report published by Alternet with the title “10 of America’s Most Dangerous Hatemongers”.

After converting from being a Marxist decades ago, Horowitz now runs his own right-wing think tank, bankrolled to the tune of $3.4 million by the Milwaukee-based Bradley Foundation, according to the Center for Media and Democracy. Horowitz gained recent fame as a key mentor of Trump advisor Stephen Miller, the man behind Trump’s family separation policy according to the Atlantic.

[…] ALEC is moving into dangerous territory. Despite the formidable infrastructure they have built over 45 years, their control of 33 state legislatures and their hordes of corporate cash that perpetually grease their wheels, the organization seems to be increasingly in disarray and in an identity crisis. While simultaneously distancing themselves from the chaos and corruption of President Trump, the reality is that they need him, and his hate-mongering, to further the foundation of their right-wing agenda–gutting the ACA and federal conservation standards, repealing workers’ rights, pushing down wages and privatizing public education.

And so the Horowitz’s of the world, who ALEC at least publicly has kept at a distance during my tenure, are now becoming part of the ALEC universe. Are ALEC supporters, including their corporate funders, willing to embrace this hate-mongering to continue to advance their corporate agenda?

Horowitz’s brand of politics may be popular with party activists, but corporate ALEC members are more concerned about their public image.

After Horowitz’s appearance, Verizon notified ALEC it was resigning from the group.

“Our company has no tolerance for racist, white supremacist or sexist comment or ideals,” a Verizon spokesperson said in a statement.

It is a severe blow to ALEC, which welcomed Verizon as a dues paying member in 1988, when Verizon lobbyist Ron Scheberle served as chairman of ALEC’s board.

ALEC’s damage control effort came in a statement to the press:

ALEC takes speaker vetting seriously and—in partnership with meeting sponsors—applies a rigorous process to identify speakers on important matters of public policy. Each speaker is apprised of the ALEC policy focus, how to address the audience and what issues not to discuss. ALEC does not work on social issues. Rather it focuses on limited government, free markets and federalism at the intersection of the economy and public policy.

In this case, the speaker was advised of the program parameters and did not abide the process.

Upon learning of concern following the conclusion of remarks, ALEC staff removed the video archive of the livestream and ceased promotion of the speech as the comments were inconsistent with the manner in which speeches are offered at ALEC.

ALEC was launched to give its corporate members and lobbyists direct access to state legislators to shepherd corporate ghost-written bills into state laws or at least heavily influence members’ bills to make them corporate-friendly. In some cases, corporate-written “model bills” were adopted word-for-word by some state legislatures and became law, with the help of Republican support and co-sponsors.

Rep. Taylor

Verizon and other telecom company members like Comcast and AT&T have benefited handsomely from membership in ALEC, successfully pushing through state laws for statewide video franchising, eliminating local control over cable television providers, pole attachment and zoning reform for wireless companies, working to eliminate universal service obligations and regulatory oversight for landline service, state bans on municipal broadband competition, and most recently working to stop states from writing their own net neutrality provisions to replace those lost on the federal level.

ALEC has always maintained close ties to Republicans and its deep pocketed corporate members. But until recently, it has usually shied away from headlining lightning rod social issues out of deference to its controversy-shy corporate members.

Horowitz’s remarks, live-streamed across the internet by ALEC, may have been the final straw for Verizon. In late August, 79 public interest and environmental groups co-signed a letter to ALEC members drawing attention to Horowitz’s remarks and asking companies to leave the group for good.

“Make no mistake, your continued financial support of ALEC is an endorsement of this dangerous vision for our country,” the letter said.

It’s also apparently bad for business.

David Horowitz speaking at 2018 ALEC Conference in New Orleans, La. on Aug. 10, 2018. (17:51)

Wireless Industry Claims Removing Regulatory Hurdles Will Save $1.6 Billion on 5G Deployment

Accenture’s six-page analysis.

CTIA, America’s largest wireless industry trade group and lobbyist, commissioned a research consultant to produce a six-page analysis that unsurprisingly concludes stripping some oversight responsibilities regarding cell tower placement would reduce the cost to deploy 5G wireless small cells by as much as $1.6 billion over the next nine years.

The Federal Communications Commission is currently considering industry-friendly proposals that would “streamline” and “modernize” the historic and environmental regulatory requirements for wireless deployments, exclude small cells from certain federal regulatory reviews, and put a strict limit on completing environmental impact reviews on new tower and antenna installations or else they will be automatically approved.

The Accenture analysis, produced at the request of CTIA, claims that it will cost an average of $9,730 for each 5G small cell regulatory review. But the report also states only 28-29% of installations will face this type of review. The CTIA implies it is much worse than that in its new 30-second ad complaining about regulatory burdens. That ad suggests 5G small cell “approval can take a couple of years.”

As the FCC ponders further deregulation of cell tower and antenna placement, wireless industry players are sharing their horror stories with the FCC to strengthen the agency’s likely  view that installation rules and oversight should be relaxed.

In January, Sprint complained it faced a demand to pay a $90,000 “tribal review fee” for six tower upgrades in the Chicago area. The company claims the towers were located in historic preservation areas, but not in areas of tribal significance. Sprint added in its letter to the FCC it only planned to install additional antenna equipment at those tower sites to increase capacity, not erect new towers.

The wireless industry is also lobbying to get cut-rate access to public infrastructure like street lights, on which it eventually plans to place 5G network equipment.

In states like California, AT&T has pushed hard for new legislation that would mandate cities and counties to give the company open access to public infrastructure in public rights-of-way or utility easements. In a 2017 bill before the California Senate, companies like AT&T would face a fee limit of $100-850 per small cell per year, indexed for inflation,

With multiple wireless companies prepared to enter the 5G marketplace, utility poles could get crowded.

Cities and counties may also find their right to object to what eventually ends up on their poles curtailed as a result of the deregulation effort.

CTIA’s new 30-second advertisement claims 5G small cells can be installed in about 90 minutes, but only after waiting years for a sluggish review process. (30 seconds)

Fidelity Communications Caught Running Astroturf Website to Kill Broadband Competition

Sock Puppet “consumer group” opposing municipal broadband in Missouri is outed by their own website.

Fidelity Communications, a small Missouri-based independent cable operator providing service in Missouri, Oklahoma, Arkansas, Louisiana and Texas, has been outed as the creator and backer of a ‘grassroots’ group trying to prevent West Plains, Mo., from launching a public broadband network that would directly compete with Fidelity.

West Plains, a community of 12,000 in south-central Missouri, runs a public fiber network originally envisioned connecting city buildings, a local medical center, fire, police, and highway offices together. Local cable company Fidelity Communications had shown no interest in providing fiber connectivity in West Plains, so city officials explored the idea of building a city owned and operated fiber network itself. As word spread around town that fiber broadband was under consideration, locals began lobbying city officials to open the network up for private commercial and residential users as well.

By January 2016, supported by a dozen major employers willing to participate as network “anchors,” the city of West Plains got into the internet provider business.

West Plains has been challenged by a lack of digital infrastructure and has seen at least 500 jobs disappear over the past few years. Inadequate service from cable company Fidelity Communications, which suffered from frequent speed slowdowns and service interruptions, drove demands for an alternative.

Local officials have been extremely cautious about entering the broadband business, and have been reluctant to grow their network too quickly. The goal of the network these days is to provide robust and reliable high-speed internet access essential for the local digital economy and the jobs it creates. But city administrator Tim Stehn is also concerned about being a careful steward of the community’s finances.

“Of course, as a city administrator, I’m concerned, because if we would go completely to all businesses and residents, we’re looking at a high price tag that is estimated at $15 million,” Stehn told Christopher Mitchell in a 2017 interview for Community Broadband Bits. “What scares me the most is the customer service aspect of this. If we’re going to do this, I want to make sure the city is successful and that we can respond at serving the customer service. That’s the piece that really scares me the most.”

West Plains’ fiber network has grown carefully over the last few years, both in terms of its reach and its capabilities. At the outset, the network offered 25/25 Mbps dedicated connections primarily to business customers. But where West Plains’ fiber loop passes residential homes, the city has also been willing to provide service to local homeowners as well.

Last September, the city announced a three-month trial of the city’s 1 Gbps Gigabit Passive Optical Network (GPON). Up to 80 businesses and 14 homes in the Southern Hills district were invited to participate. West Plains’ GPON network offers participants a shared 1 Gbps connection. City officials were confident that even though the network is shared, there will be plenty of capacity available — much more than what DSL and cable broadband networks offer. The results of the pilot are designed to ascertain how much peak usage traffic the network will face and help local officials decide on what kinds of speed tiers to offer going forward.

The community’s progress since 2016 has not gone unnoticed. As Stop the Cap! has documented before, one of the best ways to force a stubborn incumbent phone or cable company to upgrade their network is to threaten to compete with it. Last September, Fidelity Communications suddenly announced it, too, was now offering gigabit internet service — at least for download speeds — within West Plains.

The residential service features 1 Gbps download speeds with 10 Mbps uploads, with a flat price of $79 per month, fees and Wi-Fi included, taxes may still apply. The higher speeds support multiple video streams, high-end online gaming, unlimited wireless devices and rapid transfer of huge data files, along with the capability to handle other bandwidth-hungry applications.

Over the past several months, Fidelity completed network upgrades, acquired 1 Gig-capable customer modems and freed up the bandwidth necessary to support the new 1 Gig speeds. These improvements will bring convenience and ease to those using the Internet in West Plains.

“As time goes on, technological demands keep increasing,” said Don Knight, Missouri general manager for Fidelity. “Fidelity intends to meet that demand by providing broadband speeds not normally available in rural areas.”

West Plains receiving gigabit service from two gigabit providers should be welcome news for local residents and businesses. But it apparently was not good news for Fidelity, which does not appreciate the competition.

Stop City Funded Internet has references to “Fidelity” — the area’s local cable company in certain file paths to images and other documents on its website.

StopCityFundedInternet.com was registered on Dec. 13, 2017 (and last updated Jan. 23, 2018, concealing the identity of the entity that registered the domain name behind an anonymous proxy service provided by Namecheap, a well-known domain name registrar.)

When the website went live, it claimed to be a “collection of fiscally conservative Missourians who believe that the role of government is to provide essential services that enhances the lives, safety and prosperity of local communities as opposed to leveraging taxpayer funds on high-risk endeavors that compete with services already provided by the private sector.”

This “independent” website coincidentally promotes the products and services of Fidelity Communications.

The website appeared to borrow heavily from a similar (failed) campaign to stop municipal broadband in Fort Collins, Col. The most common message of anti-municipal broadband campaigns is ‘taxpayer dollars will be wasted on failing broadband networks that take away from investments in schools, local infrastructure spending, and reducing crime.’ The Stop City Funded Internet campaign hit on all three of these messages, along with what it claims are examples of “failed” public broadband projects. The group’s website links to several “news articles” about municipal broadband that are actually opinion pieces typically written by industry-funded groups and individuals.

“West Plains is already a “Gig City,” with other private internet providers,” the website claims, without referring to Fidelity Communications directly. “In fact, residents already have access to a Gig connection for $80 per month. $80 per month is a price that is in line with many other cities around the country. The City of West Plains should focus its limited taxpayer funding on more pressing priorities, like fixing our roads and bridges, improving public safety and supporting our schools. And spending taxpayer dollars subsidizing a broadband utility would mean fewer resources for other services residents need and enjoy.”

The group invites those who oppose public broadband to register for e-mail updates, which will likely involve a $15 million bond and public referendum that would be needed to build out the city’s fiber to the home network to the entire community.

Isaac Protiva of West Plains found something unusual about the sudden appearance of the group and its website, which had no presence in the community before. For one, the group seemed to have an ample budget to spend on targeted Facebook ads for local residents. The ads promote the group’s website and Facebook page. That isn’t the case for Protiva’s own website: Internet Choice West Plains, which promotes the public broadband effort out of his own pocket.

Protiva also discovered certain elements on the group’s web page directly referenced “Fidelity:”

  • Header image: The main image from the homepage has a file name of “Fidelity_SCFI_Website_V2”
  • Privacy Policy: An image from the Privacy Policy page was hosted, or stored, on a website named “Fidelity.dmwebtest.com”

The website’s attempt to painstakingly avoid any connection to Fidelity Communications makes it a classic industry-sponsored astroturf operation. A private company secretly finances an “independent consumer group” that falls in line with the company’s public policy agenda. Many companies even brazenly reference such groups as evidence that their business views are in line with those of the public. In this case, the website developer accidentally outed the operation.

After Protiva began to publicize his efforts to document Fidelity’s funny business, the company initially responded by trying to hide the evidence. The website owners disabled the Internet Achive’s ability to snapshot the website’s history to scrub evidence of the accidental ties to Fidelity, Protiva claims. He also claims the group is heavily censoring its Facebook page.

Presented with strong evidence of the connection between Stop City Funded Internet and Fidelity Communications, the company finally came clean in a Facebook post:

San Jose Mayor Quits FCC’s Industry-Stacked Broadband Deployment Advisory Committee

Liccardo

San Jose Mayor Sam Liccardo has resigned from the Federal Communications Commission’s Broadband Deployment Advisory Committee (BDAC), claiming the panel has been stacked with telecom industry players that will advocate for the interests of the telecom industry, not the public.

“It has become abundantly clear that despite the good intentions of several participants, the industry-heavy makeup of BDAC will simply relegate the body to being a vehicle for advancing the interests of the telecommunications industry over those of the public,” Liccardo wrote in his resignation letter.

The corruption was baked in from the earliest days of the BDAC, originally created by FCC Chairman Ajit Pai in January 2017 to help resolve the digital divide between those who have access to internet service and those who don’t. BDAC was charged with providing advice and recommendations on how to accelerate the deployment of high-speed internet access. Pai used the BDAC partly as a front group to advocate for his own long-standing goal of reducing or eliminating what he believes are regulatory barriers to infrastructure investment.

Controversy erupted almost immediately as the BDAC member nomination process began. Pai and his staff packed the 30-member group with telecom industry corporate executives, trade groups, and free market scholars frequently funded or sponsored by telecom companies. According to the Center for Public Integrity (CPI), the FCC initially accepted only two of the 64 city and state officials nominated to serve on a committee that was likely to recommend major changes to local and state zoning and permitting laws. Liccado was one of the two.

CPI filed a Freedom of Information Act request with the FCC to force the agency to divulge detailed information about applicants and those approved to serve as panel members. They found three out of four members appointed worked for big telecom companies like AT&T, Comcast, Sprint, and TDS Telecom. Crown Castle International Corp., the nation’s largest wireless infrastructure company, and Southern Co., the nation’s second-largest utility firm, also have representatives on the panel. The “broadband experts” chosen as members largely came from conservative think tanks that have industry funding ties or connections with wealthy conservative donors like the Koch Brothers.

Liccardo sensed trouble on the committee as early as last August.

“It’s not lost on us that among the 30-odd members of the BDAC, only two represent local government,” Liccardo said. “We’ll see where things go in the weeks ahead, but it’s fair to say the footprints are in the snow.”

Gary Carter, who works for the city of Santa Monica, Calif., where he oversees City Net, one of the nation’s oldest publicly owned networks, thought he would be the perfect candidate to serve on the BDAC. The FCC didn’t think so.

“When I called [the FCC] to check on the status of the BDAC selection process [earlier this year] and identified myself as an employee from the City of Santa Monica, the gentleman on the phone laughed hysterically,” Carter said. “At first I didn’t get the joke. When I saw the appointees for the municipal working group—only three out of 24 positions were from local government—I got the joke.”

The corruption has not been a surprise to one telecommunications executive serving as a BDAC member. He candidly told CPI the committee was purposely “stacked” to guarantee findings and proposals that echo Pai’s anti-regulatory agenda.

“It’s definitely stacked towards private enterprise,” said the executive, who requested anonymity due to fear of retaliation from FCC officials. “It’s nothing new. The [current] FCC serves private enterprise.”

Nick Degani, senior counsel to the FCC and Pai’s wireline legal advisor, told BDAC members at a July meeting that only a few city officials were chosen because they are the ones that need guidance, not telecommunications companies.

City and state officials locked out of Pai’s panel warn that BDAC recommendations could soon lead to new rules that will ignore local residents’ wishes in favor of the interests of cable, phone, and wireless companies. Recommended rule changes could allow telecom companies to gain free or very low-cost access to public buildings on which it can place cell towers or the small cells that will end up on utility poles. Much of the equipment the industry wants to place threatens to clutter neighborhoods with unsafe, overloaded utility poles and some new infrastructure could block scenic views or be placed in sensitive environmental areas.

CPI spoke with many local officials who asked to participate as a member of BDAC, but were turned down:

“There are reasons you have to get a permit if you want to dig up the side of the street,” said David Frasher, city manager of Hot Springs, Arkansas, who also was nominated—but turned down—for a seat on the BDAC.

“The city needs to know if you’re going to block traffic or create a hazard to sidewalk users,” Frasher said. Maybe there’s a way to streamline those regulations, “… but with only 10 percent city government representation, how helpful will the end product be?”

The FCC also didn’t choose David Guttenberg, member of the Alaska state legislature. He said service providers writing local rules for internet deployment makes him fear for Alaskan residents, many of whom have such poor wireless service that they have trouble downloading emails.

“They [telecommunications companies] are only going to look after their own self interests,” Guttenberg said. “Find me the guy that works for telecommunications on this committee that’s going to sign onto a plan telling their business to do something they don’t want to do. Find me that guy.”

What Pai has done by packing the panel with industry representatives is, in the end, “pretty standard in Washington,” said Sarah Treul, a political science professor at the University of North Carolina at Chapel Hill. “The FCC expects certain outcomes from this advisory committee.”

Pai

That point was not lost by San Jose Mayor Liccardo, who finally had enough after witnessing several cases of BDAC’s industry members wielding veto power and unilaterally rewriting collaborative proposals to fit the agenda of large cable and phone companies.

“One working group, which did not have a single municipal representative among its 30+ participants, created a draft model state code that included provisions to eliminate all municipal control over when, how, and whether to accept industry applications for infrastructure deployment,” Liccardo complained. “Another working group had an industry representative dramatically re-write its draft municipal code in the 11th hour, pushing aside the product of months of the working group’s deliberations. The result, in each case, were provisions that plainly prioritized industry interests.”

Also dovetailing with Pai’s narrative, many telecom companies griped about the cost of complying with local rules and regulations. In April, Larry Thompson, CEO of the National Exchange Carrier Association, with 1,300+ local telephone company members, complained one member had to pay $700,000 in costs to comply with environmental laws, historical preservation rules, zoning, and construction-related paperwork.

A representative from Comcast worried that the BDAC’s work has been so polarized towards the telecom industry, excluded state and local officials will have every reason to resist the BDAC’s findings and recommendations and refuse to adopt them.

“If they don’t feel included, not only are they outside throwing [darts] at this process, but then in the end it’s those groups that we want to adopt these model codes,” said David Don, vice president of regulatory affairs at Comcast.

But Liccardo warns Pai and his Republican allies are laying the foundation to “steamroll” over local officials by bulldozing local control of zoning and code rulemaking. For that reason, he quit the committee.

“The apparent goal is to create a set of rules that will provide industry with easy access to publicly funded infrastructure at taxpayer subsidized rates, without any obligation to provide broadband access to underserved residents.”

If Pai does manage to enact new federal rules that are as industry-friendly as Liccardo and other city officials fear, the FCC could overrule local zoning and permitting rules on a scale never seen before.

“It’s obvious that this body is going to deliver to the industry what the industry wants,” Liccardo said.

That appears to be Mr. Pai’s agenda as well.

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  • Todd: If the fine print is that bad, it's just as bad as Spectrum's $14.99 Internet Assist. They offer it, but no one can actually qualify to get it. It s...
  • Mike W.: They are not doing the right thing by any means. This is simply a PR stunt to make them look good to everyone who doesn't realize this is a BS progra...
  • Dylan: I better be getting 200mbps instead of 100 soon then if I do get a increase from $55 to $60 for bundle internet services. I understand the investments...
  • Charles Dennett: Just looked at my bill dated October 14. I'm in the Rochester, NY market. I have Spectrum TV select ($64.99/month), DVR Service ($12.99/month) and 10...
  • Gale Blue: It’s sounds good until u paid ur money and then u get an email saying they need additional info smh I am a mother who lives wit my daughter and the ca...
  • Victor Bosnich: Have been trying to return this junk and get my refund of $100+ for months, finally had chat with technician, told him situation, he sent me to next p...
  • Jr: Can I still use the same wifi router they gave me? I'm going to get the Netgear but it says I need a router to get WiFi so what do I do?...
  • RJ: I get great service from Charter with Internet. Their upload speed sucks so they need to upgrade, innovate and get Full duplex going. I'd love to have...
  • Inga Nobles: Forgot password and username I'm enquiring about the promotion samsung chromebook...
  • fhall1: The PSC should also make a point of extending other "conditions" that were agreed to as part of the TWC buyout. For example - data caps. Spectrum ag...
  • Frontier Employee: I am a current Frontier Employee and I can promise you that the company's lack of concern for those less fortunate does not solely reside with its cus...

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