North Carolina: the fight against S.1209, the municipal broadband moratorium bill that stops communities from building their own broadband alternatives now moves to the House Ways and Means/Broadband Connectivity Committee.
All 15 members are listed below. You need to call and e-mail them and let them know you vehemently oppose this anti-consumer legislation as it stands. Let them know you want that one year moratorium out of this bill at all costs. Better yet, considering the study group mandated by the bill doesn’t include any consumers, just throw the whole thing out. The only study that needs to be done is why North Carolina is near the bottom of the 50 states in broadband rankings. Municipal providers can change that and revitalize local economies, create new high-tech jobs and help advance health care and education. You can accomplish none of these things with a one-year roadblock on broadband progress.
Some of our allies on this legislation have been forced to mute their opposition, trying to avoid an even worse bill that could make a municipal broadband moratorium permanent. That means North Carolina residents have to be on the front lines of opposition more than ever.
Let legislators know you understand some groups representing towns and cities in the state may have stopped fighting against the bill, but that doesn’t mean they endorse it. More importantly, as a voter, you oppose the bill. If you are personally served by one of these 15 representatives, let them know their vote is being carefully watched. Will they stand with the people of North Carolina who want better broadband and believe local government should be able to provide it, or do they stand with Time Warner Cable, AT&T and other telecom companies seeking a one year moratorium that guarantees another year of high prices, inadequate broadband, and no alternatives for towns and cities that want better options.
As always, be polite, persuasive, and persistent! Phone calls work wonders, but at least send an e-mail. Doing both is even better. You can click the e-mail addresses in bold to launch your e-mail software. Please do not carbon copy legislators. Send an individually personalized e-mail to the representative(s) of your choice.
House Ways and Means/Broadband Connectivity Committee
Senator Queen worked hard to try and strip the one year moratorium out of Senator Hoyle's anti-consumer bill
With the League of Municipalities essentially cutting a deal to sit on a municipal broadband study group that includes no actual consumers, voting for big telecom’s favorite bill of the year became a no-brainer. It was a real shame to see the voting results on S.1209, despite pleas from consumers and some of North Carolina’s most rural representatives demanding to keep the municipal broadband option open. They understand reality — while a handful of politicians in Raleigh cash big corporate contribution checks from the cable and phone companies, those out in the rural real world live with the results — no broadband.
We don’t need a one year moratorium on municipal broadband. If the state government wants to study the issue, so be it, but a one year suspension on municipal broadband is a stall technique that big telecom providers are celebrating across the state.
Residents across North Carolina owe Sen. Joe Sam Queen a special thank-you for leading the charge for better broadband for rural residents. He offered an amendment that would let the study go forward, but stripped out the anti-consumer moratorium.
Mark Binker of the Greensboro News & Record explained what happened next:
During the debate Monday night, Sen. Joe Sam Queen, a Waynesville Democrat, offered an amendment to allow the study to go forward but remove the moratorium.
Sen. David Hoyle, a Dallas Democrat and the Rules Committee chairman, offered a substitute amendment that essentially altered the bill’s language a bit but kept the moratorium around. Hoyle is one of the bill’s primary architects.
“We do not need a moratorium on the expansion of broadband across North Carolina,” Queen said. “This will only pour cold water on a very innovative sector.”
Now for a word on substitute amendment: When a substitute amendment is offered and accepted, it has the effect of wiping out the first amendment, which then can’t be offered again during the debate. It’s a way of doing away with things that the majority really doesn’t want to vote on.
During the past five years, I’ve mostly seen it used in the Senate my Democratic leaders to do away with Republican amendments they view as noxious – typically politically charged measures that could be awkward votes for rank and file members. I can’t recall the last time I saw a Dem on Dem substitute amendment.
I don’t know what, if any, conclusion can be drawn other than Hoyle was going to make darned sure his bill went through as is. Vote for the final measure was 41-7.
When big telecom pays the way, Senator Hoyle knows their needs must be met at all costs, no matter that his transparent shilling for the industry steamrolls over his fellow Democrats. Besides, with his retirement looming (we’ll be watching to see where he lands next), who cares if his constituents are upset? Certainly not Hoyle.
Fifteen Senate members stood against Hoyle’s ridiculous moratorium and deserve some recognition as well:
Courtesy of Mark Turner, here is the audio from the Senate floor debate over S.1209 and the arguments for and against a municipal broadband moratorium. (June 7, 2010) (30 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.
Tomorrow, the fight in the House begins with a call to action to start flooding members of the House Ways and Means/Broadband Connectivity Committee with calls and e-mails. In the short House session, there are plenty of opportunities for us to derail this anti-consumer gift to the state’s cable and phone companies. I’ll have a contact list up tomorrow.
LUS Fiber is a municipally-owned provider competing in Lafayette, Louisiana
Lafayette Utility Systems’ LUS Fiber has filed a formal complaint with the Federal Communications Commission accusing the cable industry co-op of blocking the company from getting the favorable discounts and access to cable networks its competitor Cox Cable receives.
LUS Fiber Director Terry Huval said the blockade against LUS Fiber could ultimately cost the city millions and deny subscribers access to popular cable networks. Huval accused its rival, Cox Cable, of being behind the repeated denials of membership for the Louisiana municipal cable system.
The municipal provider issued a news release stating that its complaint to the FCC originally was joined by municipal providers in Wilson, N.C., and Chattanooga, Tenn., but the National Cable Television Cooperative has since admitted those systems, while keeping LUS Fiber out.
“The NCTC opened membership to two other municipally-owned telecommunications companies that are very similar to our own Lafayette operation and in the same week refused to admit us on the same terms and conditions,” Huval said. “The only difference among the three systems is that our major cable competitor is NCTC’s largest member as well as a member of NCTC’s board of directors.”
LUS Fiber's primary competitor is Cox Cable
The NCTC is critically important to many medium and small sized cable companies who together collectively bargain access and the best possible volume discounts for hundreds of cable networks and broadcasters. Those discounts are substantial, considering only Comcast gets larger discounts than the NCTC’s group membership. NCTC membership also frees members from the tedious one on one negotiations cable systems would otherwise be required to conduct to obtain and maintain agreements with cable programmers.
Keeping LUS Fiber out means the municipal provider could be left charging higher prices than Cox charges for cable-TV in Lafayette.
Federal law appears to be on the side of LUS Fiber as part of the 1992 Cable Act that consumer groups fought for:
It shall be unlawful for a cable operator, a satellite cable programming vendor in which a cable operator has an attributable interest, or a satellite broadcast programming vendor to engage in unfair methods of competition or unfair or deceptive acts or practices, the purpose or effect of which is to hinder significantly or to prevent any multichannel video programming distributor from providing satellite cable programming or satellite broadcast programming to subscribers or consumers.
The NCTC operates a spartan website at nctconline.org
As someone who personally was involved in the passage of that legislation, the ironic part is we were fighting -for- the NCTC back then. Of course, those days the cooperative was made up of wireless cable providers, utility co-ops, municipal co-ops, and other independent cable systems that were constantly facing outright refusals for access to cable programming or discriminatory pricing. Satellite dish-owners were also regularly targeted. NCTC was a friendly group in the early 1990s but has since become dominated with larger corporate cable operators, especially Cox Cable and Charter Communications.
LUS builds a compelling case:
NCTC and its dominant members have not only grown significantly in size and power, but they have become increasingly anti-competitive themselves. They are now undermining Congress’s pro-competitive intent by using denial of membership in NCTC as an anticompetitive device to insulate NCTC’s existing members from competition by new entrants.
Specifically, in 2007 and 2008, NCTC imposed a “moratorium” on new members, claiming that it needed time to review its membership policies. In late 2008, NCTC supposedly lifted the moratorium, posting new application procedures on its website. These procedures, NCTC stated, would ordinarily result in admissions within 60-120 days. LUS promptly applied for membership, furnishing all of the information that NCTC required. In reality, NCTC only lifted the moratorium for private-sector cable operators, including Cox and Charter. For LUS and other municipal cable operators, NCTC’s claim to be open to new memberships turned out to be little more than a deceptive sham.
In short, as of April 2010, despite publishing procedures suggesting that new members would be admitted within 120 days, NCTC had not admitted a single new public communications provider during the year and a half since it supposedly lifted its moratorium.
Without access to programming at competitive prices, no one would consider switching to a municipal provider that charged higher prices than the incumbent. The NCTC’s increasingly secretive and erratic admission of new municipal members provides ample ammunition for those on the outside looking in to accuse the group of unfair practices.
Ontario County, just south and east of Rochester, N.Y., is unleashing the power of fiber optics after private providers turned their noses up at the rapidly-growing Finger Lakes region.
“We just said we need this so badly, we just did it ourselves,” says Ed Hemminger, president and CEO of Axcess Ontario, a non-profit corporation created by the county government to run the $7.5 million dollar project. Hemminger appeared on this afternoon’s edition of CNBC’s Power Lunch.
The 180-mile fiber optic network now two-thirds complete is expected to be finished by year’s end. Hospitals and schools are already leasing capacity on the fiber ring.
Axcess Ontario doesn’t actually provide broadband service to businesses and consumers itself. Instead it leases capacity to all-comers, inviting them to use the fiber ring to enhance their broadband infrastructure. The company doesn’t provide residential service, for example, but it could enhance another provider’s ability to deliver service. Right now, the county is contemplating a wireless Internet service for consumers, if they can find a provider. Frontier Communications could be a likely contender, considering it already provides a Wi-Fi service in downtown Rochester and in portions of suburban towns like Brighton, Pittsford, and Greece.
Hemminger
Ontario County is one of the bright spots in western and central New York’s difficult economy. Both residential and business growth continues, despite the recession, particularly in communities like Canandaigua, Victor and Geneva. Having a state-of-the-art fiber ring enhances the area’s ability to attract new businesses and jobs to the Finger Lakes region, often better known for tourism. At least that is the plan.
“Honestly every company is an Internet company because they all have to use the Internet,” Hemminger claims.
Having the county build the network was the only prospect for getting it done.
“We can have a Return on Investment of 25 years, while the private sector has to recoup its costs in three to four years,” Hemminger says.
Thanks to Stop the Cap! reader Jeff for sending word.
[flv]http://www.phillipdampier.com/video/CNBC Making Broadband Accessible 6-10.10.flv[/flv]
Ed Hemminger discusses the Axcess Ontario fiber ring project in Ontario County, N.Y., on today’s edition of Power Lunch on CNBC. (2 minutes)
S1209 would have sailed through the North Carolina Senate 39-5 this afternoon had it not been for Sen. Joe Sam Queen who objected to the third reading of the bill. Senator David Rouzer (R-Johnston, Wayne) also changed his vote from “no” to “yes” which would have ultimately left the count at 40 for and 4 against. After that, the Senate adjourned and will take up the bill once again on Monday. What a job well done… for the cable and phone companies.
Brian Bowman reports that none of the Wake County senators opposed the bill or asked that the moratorium be removed.
Out of the entire North Carolina Senate, there are just four good guys?:
Senator Joe Sam Queen (Haywood, Yancy, Avery, Madison, McDowell, Mitchell) [email protected]
Senator Steve Goss (D-Alexander, Ashe, Watauga, Wilkes) [email protected]
Senator James Forrester (R-Gaston, Iredell, Lincoln) [email protected]
Senator John Snow (D-Cherokee, Clay, Graham, Haywood, Jackson, Macon, Swain, Transylvania) [email protected]
Be sure to send all four of these folks your enormous thanks for doing the right thing. Apparently that is becoming more and more difficult these days.
For those who forgot why this fight matters, here’s a reminder. Watch it.
[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Martha Abraham, Mars Hill NC.mp4[/flv]
The people in Mars Hill, N.C. cannot afford to forget.
Now let’s talk reality for a moment. I’ve been involved in legislative battles on issues regarding telecommunications policy all the way back to the late 1980s when I was fighting for home satellite dish-owner rights. Back then it was a struggle against big cable, too. It took several tries, but we eventually won that one. Along the way, a lot of the same legislative trickery involved in S1209 reminded me of similar experiences back then. We shouldn’t make the same mistake twice. Let’s take a look:
The revised S1209 establishes a subcommittee to study municipal broadband funding issues while buying the industry a one year reprieve from any other cities or town going their own way. The members on this fact-finding endeavor are specifically defined:
A cable service provider.
A wireless telecommunications service provider.
A local exchange provider that is not a wireless telecommunications service provider.
A local exchange provider that is a wireless telecommunications service provider.
A city that operates a cable system and an electric power system as a public enterprise.
A city that operates a cable system as a public enterprise and does not operate an electric power system as a public enterprise.
A city that is a member of a joint agency established under G.S. 160A-462 for the operation of a cable system as a public enterprise.
The North Carolina League of Municipalities.
Now, can anyone reading tell me who is -not- on the list? Have you guessed?
-You- are missing from this list!
Everyone else is in the back room — cable and phone companies, cities, and a lobbying group representing cities. But not one North Carolina consumer who lives with broadband challenges day in and day out has a place at that table. What do they know anyway?
Brooks Townes in Weaverville doesn’t have a seat at the table, either.
How ironic that everyone holding a seat claims their interests coincide with ordinary citizens like you and I. After all, we’re supposed to be what this fight is all about. Sometimes, our interests will meet. Other times, especially when it comes to legislative strategies, they might not.
An Uncomfortable Revelation Caught On An Open Mike
Thanks to WUNC’s Laura Leslie, you can listen yourself as Senator Clodfelter, not realizing his mike was on, tells Senator Blue, “Now I’ll tell you that the … what I call the crazies who circulate around this issue are not going to like this [S1209 revision with a moratorium], but the municipalities are all on board. They negotiated it, they negotiated it so it’s not possible….” Blue asks Clodfelter how long he’s been talking with the groups representing municipalities. Clodfelter’s response: “We’ve been meeting daily — twice daily, so they’re all on board with this precise text.” The recording ends with Clodfelter presumably tapping his mike. Is this thing on? You bet it is. (June 2, 2010) (50 seconds)
You must remain on this page to hear the clip, or you can download the clip and listen later.
We already know what Senator Clodfelter feels about the people who are appalled at yet another embarrassing year of legislators falling all over themselves to do big cable and phone companies another favor. In his mind, we’re the “crazies” — the indignant citizens fed up with the time, money, and effort not spent building 21st century broadband networks, but instead devising strategies to prevent building them.
Corning has a plant in North Carolina that manufacturers endless miles of fiber optic cable that 40 members of the North Carolina Legislature just said they don’t need. Send it somewhere else.
Those 40 senators just told citizens — who are still using dial-up Internet access in the Appalachians, or who can’t afford the asking price for service in Spring Creek, or who only get excuses from AT&T why certain homes in Alamance County can have broadband, but they cannot — they really don’t care. What AT&T, Time Warner Cable, and Embarq wants is much more important.
[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/Layten Davis Spring Creek NC.mp4[/flv]
…More important than the needs of folks like those in Spring Creek.
So while they propose to hold a debate over the merits of the free market vs. community’s doing-for-themselves when the free market fails them, countless thousands of North Carolina’s residents go without or are still hearing modem tones as they connect at speeds dozens of times slower than everyone else.
With a legislature hellbent on stalling or stopping projects that ameliorate this serious problem, no wonder North Carolina’s broadband rankings are falling fast. In 2007, the Census Bureau ranked North Carolina 35th in broadband adoption. A year later, the state was down to 41st. At least you can be proud you’re not West Virginia, right?
But then again, there are eight more positions to drop, so there is still room to make things even worse.
Now I ask myself, what could have possibly happened to deliver 40 votes into the hands of big cable and phone company interests.
Could it have been the time honored trick of dividing and conquering the opposition? For cities who want to deliver service, the threat of “either/or” seemed particularly effective. Either take our one year moratorium -or- face the ludicrous original legislation that required a community-wide referendum if Mrs. Nickels over on Fairfax Drive needs a new cable installed at her home to get a better picture. Either way, because certain folks didn’t say no way to either choice, it’s a victory party for Time Warner Cable, with no need to BYOB — they’ll provide it themselves. Besides, say the bill’s supporters, we’re offering a chance to hear your voice and views on our stall-tactic fact-finding subcommittee. Senator Clodfelter even thanks you for being reasonable and adult about all this.
AT&T thanks you as well.
Just keep those “crazies” out of the room.
Cable and phone companies get seats, so they can continue to deliver their talking points that don’t actually deliver broadband to any underserved area of North Carolina. Haven’t they said enough already? As Senator Queen asked, where is the broadband service for my communities?
In the end, the fact finding mission (cough) will deliver a watered-down report that will find its way into the nearest recycling bin. The cities’ strong views on municipal broadband will be diluted because they’ll have four competing voices from private industry saying the exact opposite. Besides, after yesterday’s performance in the Senate Finance Committee, does anyone really believe members like Senator Hoyle care what the subcommittee will have to say? He can just make it up as he goes along, just as he did when supposedly quoting the mayor of Salisbury.
After all the years spent watching negotiations over legislation, allow me to share this one piece of advice — collaborate and compromise with interests that seek to bury you at your own risk. Big money interests will call you every name in the book for standing and fighting for your principles (and a few legislators too), but if you make it known it’s time for the other side to start compromising — by actually delivering service and charging a reasonable price for it, there wouldn’t have been a need to engage in this battle in the first place.
That’s why this “crazy” website didn’t back down when Time Warner Cable brought its “new and improved” Internet Overcharging scheme to the table after consumers rebelled against the original plan. The cable company promised a listening tour, to take advice from reasonable consumers, and to modify its plans accordingly. Some folks played the game on their field — debating numbers back and forth about what an appropriate amount of rape and pillaging of our wallets was tolerable. Time Warner changed a few numbers and blessed us with a counteroffer that would have only tripled broadband prices for the same level of service. Couldn’t we be reasonable and take their offer?
We said no and stood by it, even if it meant going down with a fight. By not backing down, we won the battle knowing full well the war wasn’t actually over yet. But you can’t win a battle, much less a war, if you surrender and refuse to fight.
In the end, we were right and they were wrong. We even proved they were never really interested in listening in the first place.
The correct way forward is to remain 100 percent committed to opposing S1209, so long as it stalls, bans, slows, or sets onerous conditions on providing broadband relief. That means calling every senator between now and Monday and then doing the same in the House.
The three words you need to remember are real simple:
Kill this bill.
If you are spending time negotiating over who gets to sit in what chair on the subcommittee, you are not paying attention.
Kill this bill.
If you are trying to split the difference over how long the moratorium is going to last, you do not understand.
Kill this bill.
If you are trying to extract some extra concessions to reduce the rape and pillaging of your citizens, stand up, take a deep breath, go outside, and then tell the first person you see to call their representatives and tell them to:
Kill this bill.
If you are a consumer, you’re probably already upset. In a polite, persuasive, and persistent way, tell your elected officials you understand S1209 has been modified thanks to a compromise, but nobody bothered to compromise with you. You aren’t interested in this bill in any form, and you know that legislator is going to do the right thing and vote no to:
Kill this bill.
If they vote yes, all they’ve managed to kill is your faith in them as your elected representative. That’s something that can be taken care of at the next election.
Maybe people like me are crazy to dare to presume that our elected officials work first and foremost for “we the people” and not for the phone and cable company. Maybe it’s nuts to spend so much time and energy fighting legislation that is so obviously written by and for the industry that cuts a check to the first representative willing to put their name on it and introduce it. We’ve seen the merits of those who tried the same thing last year. Only one of them is no longer with the state legislature, brought down on ethics charges. How surprising. This year’s fight is lead by a retiring senator who will never endure the satisfaction voters might get disconnecting him from the legislature for selling them down Telecom River. That is not too surprising either.
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North Carolina: the fight against S.1209, the municipal broadband moratorium bill that stops communities from building their own broadband alternatives now moves to the House Ways and Means/Broadband Connectivity Committee.
