In a welcome turn of events, the League of United Latin American Citizens (LULAC), which has routinely turned up as a member of Big Telecom-backed astroturf campaigns and takes money from AT&T, has come together with Latinos for Internet Freedom to issue a joint statement calling on the Federal Communications Commission to adopt equal Net Neutrality policies for wired and wireless broadband services.

“Although we disagree on some of the components of the proposed network neutrality regulations, there is one point on which we are in lock step: the FCC’s network neutrality rules must apply equally to wireline and wireless internet access.  Of course we understand that what is ‘reasonable network management’ may be slightly different over different types of connections.  Cost is the primary barrier to broadband adoption, and Latinos are turning to their mobile phones as their only onramp to the internet.  We are committed to finding ways to lower broadband costs by increasing competition through wireless access and other means.  It is therefore essential that the FCC ensures that users of wireless and wireline services are protected by its openness rules.”

Of course, broadband providers’ demands for deregulation and unified opposition to Net Neutrality have never delivered and will never provide cheaper Internet service to anyone.  In fact, the court ruling that eliminated the FCC’s authority over broadband gave providers nearly a year of a wide open marketplace, yet many providers are now sending out notices they are -increasing- broadband prices for subscribers.  Net Neutrality has never been enforced against wireless networks either, and as a result most either usage cap, throttle, or charge enormous overlimit fees for users deemed to be “using too much.”

Increased competition can bring lower prices, but only if it extends well beyond today’s duopoly.  In areas where one provider is likely to maintain a de facto monopoly, effective oversight is required to ensure consumers receive adequate service at fair prices.

Still, it is a surprising and welcome change to see LULAC recognizing the true nature of broadband access for many economically-challenged Americans, especially in minority communities where unemployment continues to be catastrophic.  Some consumers are finding prepaid wireless broadband service to be one way onto the Internet, yet Big Telecom has sought to keep those networks exempt from any Net Neutrality consumer protections.  That cannot be allowed to happen.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Verizon vs. Latinos for Internet Freedom.flv[/flv]

Watch these two competing spots from Verizon and the Latinos for Internet Freedom.  One is self-serving and a tad condescending, the other calls for a free and open Internet where individuals get a level playing field to tell their own stories and live their own lives without fear or special favor.  (2 minutes)

HP's Snowjob: The company that brought you the $70 ink cartridge supports an end to flat rate Internet service to "save" you money.

HP’s Joe Weinman argues consumers are behind the drive to abandon flat rate, “all you can eat” broadband pricing.

Weinman, whose company sells products and services to some of America’s largest broadband providers, has taken up their position that flat-rate Internet service is bad for you, claiming many are paying too much for Internet service they use too little.

In an essay posted on GigaOM, Weinman brings back the all-y0u-can-eat buffet metaphor:

For the record, I like unlimited Internet access just as much as anyone else. However, such plans appear to be on their way out, and here’s why. As I’ve explored in ”The Market for Melons” (PDF), pay-per-use is not an evil plot by greedy robber barons, but a natural outcome of independent, rational consumer choice. Consider a town with an all-you-can-eat (flat rate) buffet and an a la carte (pay-per-use) restaurant. Smart shoppers on diets will save money by patronizing the a la carte restaurant, whereas heavy eaters will save money by visiting the buffet. As patrons switch, the average consumption of the buffet will increase, driving price increases for the luncheon special, causing even more users to switch to pay-per-use.

Bottom line: it is not the proprietors driving this dynamic, but the customers themselves acting out of pure, rational self-interest—light users, by deciding not to subsidize the heavy ones, foster the vitality of the pay-per-use model.

Unfortunately for Weinman, most American broadband customers don’t believe a word of this, and even he was forced to admit as much when he noted consumers “often prefer to overpay for flat-rate rather than save money but risk bill shock.”

Karl Bode at Broadband Reports wasn’t suckered for a moment either, noting:

[…]Cable industry lobbyists would like the public to believe that such a shift isn’t about making more money, it’s about helping the poor. Not only is the metered billing push absolutely about making money, it’s about artificially constricting the pipe to protect uncompetitive carriers and TV revenues from Internet video. But instead, there’s a very concerted effort afoot to portray this shift as necessary, inevitable, and even altruistic.

Most consumers prefer the simplicity of flat rate pricing, and understand that ISPs are perfectly profitable under the flat-rate pricing model. They also understand that this is a pipe dream forged by never-satisfied investors, and once implemented ends with ever soaring per gig fees and ever shrinking usage caps.

Weinman’s essay completely ignores the reality his preferred pricing model already delivers to those who live under it in Canada.  Canadian broadband rankings continue to decline as customers there pay higher prices for a lower level of service, with usage caps that actually decline when new competitive threats from online video emerge.

Just what the doctor ordered: HP's Rx for American Broadband

We had to take time out to respond directly to Weinman and his cheerleading friends (see the comments section), some who wrote comments below the piece and couldn’t be bothered to disclose they owe their day jobs to industry-backed dollar-a-holler groups that are committed to delivering on behalf of their provider benefactors:

When Big Telecom comes ringing with promises of savings from metered or capped broadband, hang up immediately.

These plans save almost nobody money and expose dramatic overlimit fees to consumers, creating the kind of bill shock wireless phone users endure.

The OPEC-like Internet price-fixing on offer from big players delivers broadband rationing and sky high prices, while retarding Internet innovations that providers don’t own or control.

Consumers are forced to double check their usage and think twice about everything they do online out of fear of being exposed to huge overlimit fees up to $10 a gigabyte for exceeding an arbitrary limit ranging from 5-250GB.

Americans already pay too much for Internet service and now the providers want more of your money. The rest of the world is moving AWAY from the pricing schemes Weinman would have us embrace. It’s such a serious issue in the South Pacific, the governments of Australia and New Zealand are working to address the problem themselves.

Providers are already earning BILLIONS in profits every quarter from their lucrative broadband businesses. Now the wallet biters are back for more, with the convenient side benefit that limiting consumption is a great way to prevent Internet-delivered TV from causing cord-cutting of cable TV packages.

As far as consumers are concerned, and Weinman admits as much, people are happy with today’s unlimited price models. When Big Telecom complains people are overpaying for broadband, wouldn’t their shareholders be telling them to shut up and take the money? There is more to this story.

Weinman defends the extortion proposition Big Telecom would visit on us: either give us limited use pricing or we’ll raise all of your prices.

But as consumers have already figured out, these providers never reduce prices for anyone. When was the last time your cable bill went down unless you dropped services?

Don’t be a sucker to Big Telecom’s “broadband shortage” or pricing myths. Broadband is not comparable to water, gas, or electric. The closest comparison (and the one they always leave out) is to telephone service, and as we’ve seen, that business is increasingly moving TOWARDS flat race, unlimited pricing.

Want to know what metered pricing does to the wallets of consumers? Just ask Time Warner Cable customers in Rochester, Greensboro, San Antonio, and Austin what they thought about the cable company’s “innovative” pricing experiment that tripled the price for the same level of broadband customers used to get for $50 a month. After the torches and pitchforks were raised over $150 a month broadband service, Time Warner backed down.

Either with or without metered pricing, the cable company raised its prices three times last year alone.

The industry’s meme that “usage-based pricing” in inevitable is only true if consumers allow it to happen.  The parade of Internet Overcharging advocates all share one thing in common — they earn a living from the providers that dream about these pricing schemes.  Always follow the money.  As we’ve exposed repeatedly, the vast majority of defenders of these kinds of pricing schemes are not consumers.  They are:

• The providers themselves;
• Wall Street banks, investors, and the business media catering to them;
• Non-profit groups receiving substantial contributions from providers;
• Industry-funded “think tanks” and research that can carry the industry’s public policy agenda, hoping the media that quotes them are too lazy to follow the money;
• Equipment and service vendors, unions, and other groups who depend on the business or jobs they get from providers.

Big Telecom Cash works its magic

As the fall elections near, the rhetoric and sheer nonsense from those opposed to important consumer broadband reforms has reached a fever pitch.  And as our reader Karen writes, too many Americans and the candidates they support just don’t get it.

Here in Delaware, Tea Party candidate Christine O’Donnell exemplifies what Net Neutrality supporters are up against — complete ignorance and big cash contributions.  Before she went into hiding, I attended one of Christine’s rare public events and asked her about where she stood on Net Neutrality and her response was she believed “all sides should be represented on the Internet.”  So she thinks Net Neutrality is about views expressed online, not stopping the telecom industry from slowing or blocking access to websites.

At least 35 of the Tea Party groups are opposed to Net Neutrality, mostly because their financial backers (big corporations and billionaire-funded front groups) have convinced members they should be.  Many others are stupid enough to believe Glenn Beck and his pal Phil Kerpen at Americans for Prosperity who say Net Neutrality will “censor” the Internet or turn control of it over to Barack Obama.

Conservative groups heavily funded by corporate interests they refuse to identify are backing various chapters of so-called “Tea Party” groups and feeding them talking points generated by companies like AT&T and Verizon in opposition to Net Neutrality.  The Center for Individual Freedom runs a website StopNetRegulation, edited by conservative activist Seton Motley, dedicated to derailing broadband reforms.  Motley was also quoted in The Hill in late September warning Republicans about antagonizing Tea Party types with their support for Net Neutrality in Congress.  Only then his comments came as leader of the group “Less Government.”  Judging from the organization’s website, Motley is also in favor of reduced size websites because his amounts to a single sentence.

Seton is convinced the end of the net world, as we know it, comes November 30th when the government could “seize control of the Internet.” That’s the date of the FCC’s November meeting, at which Seton suspects Julius Genachowski will finally move to reclassify broadband as a telecommunication service. 

Seton completely misrepresents reclassification as saddling the Internet with “the same rules as landline telephones.”  I read that claim somewhere before… oh yes, straight from AT&T and Verizon lobbyist talking points.

It doesn’t matter to Seton and other conservatives that Genachowski went out of his way to say he would not be applying any onerous telephone-era regulations on today’s broadband providers.  In fact, Genachowski’s actions to date have moved at such a glacial pace, friends have to occasionally check his pulse to make sure he’s still with us.

So what is so big, bad, and scary about Net Neutrality?  It simply guarantees your Internet Service Provider doesn’t start throttling your speeds when accessing websites and Internet applications they dislike, cannot block access to websites critical of their agenda, and are not allowed to extort payments from content providers just to allow traffic onto “their” networks.

While that may pose a Halloween freak-out for the profit-obsessed phone and cable companies, it’s hard to find actual consumers (not paid by said providers) who want their Internet service blocked or slowed down.

Seton goes way over the top turning this into a First Amendment free speech issue.  That argument only works for the likes of AT&T and Verizon who find their corporate right to overcharge people for broadband being infringed.

Seton then argues his view must be right because even minority groups support his position.  As readers here already know, most of the groups he names to bolster his argument are “dollar-a-holler” organizations willing to peddle the phone and cable company agenda on their letterhead in return for donation checks.

So have many additional normally Democrat paragons, including several large unions: AFL-CIO, Communications Workers of America (CWA), International Brotherhood of Electrical Workers (IBEW); several racial grievance groups: League of United Latin American Citizens (LULAC), Minority Media and Telecom Council (MMTC), National Association for the Advancement of Colored People (NAACP), Urban League; and an anti-free market environmentalist group: the Sierra Club.

If you ever wondered why AT&T and Verizon spend so much on contributions to these interest groups, Seton Motley just handed you the answer — so he and the companies he supports could name drop them in arguments against pro-consumer broadband reform.  And considering the CWA and IBEW represent phone company workers, it’s not a surprise to see them on their side of this issue either.  Wherever you look amongst those in opposition to Net Neutrality, a check from AT&T and/or Verizon is almost always waiting to be deposited.

The Obama-Has-Concentration-Camps-crowd parked on Andrew Breitbart’s website ate it up and wrote comments like this:

The communist can’t control the people with a internet that is out of control, all dictatorships have the power over what the people can read, free thinkers in this day and age are considered terrorist, Republicans, conservatives, anti abortionist, Oath Keepers, Christians, ex military, people who think the Constitution is still the law of the land, my lord, the communist can’t have these sorts communicating with each other over the internet, why, they may all come together one day and put a stop to the one world government goal, you know, the goal of making the world one big slave camp.

This kind of wild opposition has even corporate Republicans on edge, according to The Hill.  A major talking point of Net Neutrality opposition is that such “sweeping changes” should not be enforced by the FCC, but from legislation enacted in Congress.  But because Tea Party elements are opposed to the concept altogether, and Republicans are loathe to hand Democrats their votes on much of anything, even a corporate-friendly Net Neutrality bill introduced by Rep. Henry Waxman (D-Calif.) went up in flames.  Waxman’s bill would have enacted some protections, but only until 2012, at which point it was open season on broadband consumers.

The Hill piece delivered a disappointing fact of life for much of today’s Congress, beholden first to corporate interests (underlining ours):

In a striking sign that people who normally align themselves with telecommunications companies may line up behind the bill if it is industry-backed, ardent net-neutrality critic Brett Glass, founder of a wireless company, is open to it. He tweeted on Monday, in a note to Americans for Prosperity executive Phil Kerpen, that the Waxman legislation seems “more reasonable than I expected.”

In a note earlier this month, analysts at Stifel Nicolaus wrote that although Republican House members “may not have incentive to solve a political problem for Democrats,” some may support the bill “if there’s a push by” phone and cable companies and at least some Internet companies.

But the shilling for Big Telecom has never been a one-party-problem.  While Republicans appear to be moving in lock step against Net Neutrality, a number of groups and politicians on the Democratic left have also been only too willing to take AT&T money and run to a microphone to oppose a free and open Internet.

The Los Angeles Times gave plenty of space on an issue we’ve written repeatedly about on Stop the Cap!:

Key minority groups are backing the carriers’ efforts to thwart the net neutrality proposals, which would, for instance, prohibit carriers from charging more to give some residential and corporate customers priority in delivering online content.

“When you give national civil rights groups millions of private dollars, there’s no firewall strong enough to keep that money out of their policy,” said Malkia Cyril, executive director of the Center for Media Justice.

Cyril and other consumer and public advocates have been buoyed by comments from Federal Communications Commission member Mignon L. Clyburn, a prominent African American and daughter of Rep. James E. Clyburn (D-S.C.).

She said in a speech in January that she was surprised that most statements and filings by “some of the leading groups representing people of color have been silent on this make-or-break issue” of net neutrality.

“There has been almost no discussion of how important — how essential — it is for traditionally underrepresented groups to maintain the low barriers to entry that our current open Internet provides,” Clyburn said.

AT&T's cash machine benefits groups like LULAC

At issue are the enormous contributions from big phone and cable companies like Comcast, AT&T and Verizon that routinely translate into what we’ve called “dollar-a-holler” advocacy.  After the checks get deposited, many of these groups generate innocent sounding letters of support for the latest merger, deregulation, or policy debate — always in favor of Big Telecom and too often directly against the interests of the people they claim to represent.

No group better exemplifies this than the League of United Latin American Citizens (LULAC), a particularly eager player in the cash for advocacy game.  And the group doesn’t care whether the money comes from Verizon or AT&T.  They’re on board with both.

Brent A. Wilkes, executive director, penned this guest editorial for the Houston Chronicle, for which he was called an “idiot” by at least one of the newspaper’s readers:

Net-neutrality rules should prevent broadband providers from engaging in anti-competitive behavior, but they should not be commandeered to insulate wealthy Internet applications companies from paying their fair share of the broadband bill. Any new rules must protect consumers both by ensuring their unfettered access and by shielding them from having to shoulder all the costs for faster broadband networks that our nation so badly needs. Such an approach will not please the special interests, but it will be a double win for consumers.

From AT&T’s talking points to Wilkes editorial.  “Wealthy Internet applications companies” already pay for their own bandwidth and for the Internet’s expansion.  Search engine companies like Google and Yahoo! construct data centers with their own money just to maintain their services to consumers, generating jobs and helping local economies.  Wilkes ignores the fact broadband providers already earn plenty from their subscribers — consumers and businesses who pay a monthly fee so they can access those “wealthy Internet applications companies.”

But that is not enough.  Now broadband providers want to be paid twice.  To facilitate their argument, they’ve invested more than a million dollars in LULAC alone to defend their position, which ultimately brings Latinos (and everyone else) the high broadband bills today that Wiles scaremongers will be forthcoming tomorrow.

Wilkes was shocked, shocked by the implication that phone company money would have anything to do with LULAC going out of its way to comment on arcane telecommunications policy issues, always in favor of its benefactors.

“It’s kind of like saying the minority organizations can’t think for themselves,” Wilkes said, adding that any suggestion that minority groups were mouthpieces for the industry was “offensive.”

Verizon played along:

“I can tell you we do not, and have not ever, given money to minority organizations so that they will support our positions on any topic,” said Peter Thonis, a spokesman for Verizon Communications Inc. “We talk to many groups about our positions, and some agree with us and some do not.”

So if Verizon talked to Stop the Cap! about their positions, do you think we’d receive a handsome check from the phone company?

Britt cut out all of the middlemen and picked up the phone to personally lobby FCC Chairman Genachowski about broadband reform.

The Times documented numerous other examples:

For instance, David Cohen, Comcast’s executive vice president, joined the board of the National Urban League three years ago as part of a three-year partnership to promote the league’s various educational programs. Comcast, now seeking FCC approval to buy a controlling interest in NBC Universal, was recognized that year for being one of several sponsors to donate $5 million or more to the organization.

On the local level, the Greater Sacramento Urban League has Barbara Winn, a Sacramento-area director of external affairs for AT&T, as its chairwoman and Linda Crayton, Comcast’s senior director for government affairs in California, as vice chairwoman.

That affiliate’s president, David B. DeLuz, wrote to the FCC in January that net neutrality rules “will strongly reduce broadband network investments and ultimately raise prices.” DeLuz said in an interview that the two telecom executives on the chapter’s board have not influenced its net neutrality stance.

“The Urban League does not engage in pay to play,” he said. “Just because [telecoms] write a check to us doesn’t mean they write the only check to us.”

The most remarkable part about the Urban League’s argument is that in a sea of corporate cash, competing checks can cancel each other out.

While the blizzard of bucks continues to descend on Washington, Time Warner Cable CEO Glenn Britt decided his cable company could cut out the middlemen and go right to the man with the plan to reclassify broadband.  Unlike ordinary consumers, Britt had no trouble getting FCC Chairman Julius Genachowski to take his call, allowing him to personally lobby against Net Neutrality and those nasty broadcasters trying to overcharge him for permission to carry local broadcast stations on the Time Warner Cable dial.

[flv width=”480″ height=”380″]http://www.phillipdampier.com/video/ATT Net Neutrality There’s a problem.mp4[/flv]

It seems like only yesterday AT&T’s Ed “Our Pipes” Whitacre was clamoring for the right to deliver the Internet to consumers his way, complete with pay walls and speed throttles.  Very little has changed since Big Ed left for Government Motors with his $158 million AT&T golden parachute.  The name at the top has changed, but AT&T still recognizes money buys friends and influence.  (2 minutes)

The searchlight is looking for cash.

A phone company-backed research group has awarded Verizon the “Top Provider among Market Leaders for multi-protocol label switching and Carrier Ethernet services,” with two 2010 Nemertes PilotHouse Awards. This is the second time Verizon Business has received top honors for Market Leaders in both of these categories since the awards program debuted in 2008.

Nemertes Research, which depends on industry money to conduct research, is behind the awards.  Nemertes, backed by the phone industry-funded Internet Innovation Alliance, is the same group that regularly issues research reports predicting an imminent global “brown-out” of the Internet because of excessive broadband traffic.  In turn, those reports are used to lobby for network management policies that violate Net Neutrality and fuel calls for Internet Overcharging schemes.

Verizon’s press release spends several paragraphs on the defensive, going out of its way to suggest this particular award was not another phoneybaloney recognition created out of thin air with telco money:

“This recognition is particularly meaningful because the rankings are based 100 percent on the views and experiences of actual users, making PilotHouse a truly unique industry award,” said Anthony Recine, vice president of networking and communications solutions for Verizon Business.

[…]PilotHouse Awards are based 100% on the experiences of IT-decision makers. No vendors sponsor this research.

Nemertes itself spends plenty of time trying to cope with skepticism on its own website, but manages to expose another money trail along the way (underlining ours):

6) Is this a “pay-to-play” awards program?

No. Nemertes publishes aggregate and comparative data for all vendors for which we receive a total number of ratings equal to at least 10% of the total pool of ratings. As part of the survey, Nemertes provides a list of vendors derived from extensive research and analysis. There is also another category to allow participants to write in any provider in any category.

9) Can vendors promote the awards?

Yes. After completion of the award reports, Nemertes will notify winners and offer the option of buying award packages that include reprint rights, logo licensing, webinars, issue papers, and award dinner tickets. Buying award packages have no bearing on the results of the PilotHouse awards.

Among the big winners are AT&T, Cisco (the biggest driver of the “exaflood” theory around), Verizon, and Qwest.

What remains unsaid is who pays Nemertes to run an awards program and where the research firm would be without large telecommunications companies purchasing “research” they can safely assume will always find in their favor.

Nemertes’s slogan is “Independence, Integrity, Insight.”  Research groups that truly represent those ideals need not emphasize them because they are embodied in the quality of the research, the firewall that keeps industry money from tainting the findings, and full disclosure of who is paying for what.

Broadband for America is the product of the nation's largest phone and cable companies.

Broadband for America has begun assaulting the airwaves with a high-priced advertising campaign claiming that “broadband is leading the [economic] recovery” but is threatened by “1930s telephone regulations,” urging Congress to get involved to stop broadband reform.

The 30 second ads blanketed cable and several Sunday morning news shows yesterday.

What the ads don’t mention is Broadband for America is actually one giant front group backed by large phone and cable companies.  In a study released last fall, Stop the Cap! found virtually every single “coalition” member, including so-called “independent consumer advocacy groups,” do substantial business with, or have received significant financial contributions or board assistance from companies including AT&T, Verizon, and Comcast.

Well-financed by the telecommunications industry it directly represents, Broadband for America seeks further deregulation and wants Congress to stop the FCC from enacting broadband reforms ranging from “truth in marketing” and billing to Net Neutrality.

The “honorary co-chairs” of the group are Michael Powell, the same Bush Administration FCC chairman that badly bungled the FCC’s approach to broadband policy thrown out in the courts earlier this year, and former Congressman Harold Ford, Jr., who left public service for a very lucrative career in “dollar-a-holler” advocacy and working as a lobbyist for the economic-vampire investment bank Goldman Sachs (something Broadband for America left out of his online biography.)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Broadband for America 30 sec spots.flv[/flv]

Broadband for America, a telecom-backed astroturf group, is running these advertisements promoting the agenda of AT&T, Verizon, and Comcast to try and stop broadband reform policies.  (1 minute)