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Half of AT&T’s Customers Are Paying $100 for 10GB Data; Unlimited Customers Still Throttled After 3-5GB

Phillip Dampier October 23, 2014 AT&T, Broadband "Shortage", Broadband Speed, Competition, Consumer News, Data Caps, Public Policy & Gov't, Wireless Broadband Comments Off on Half of AT&T’s Customers Are Paying $100 for 10GB Data; Unlimited Customers Still Throttled After 3-5GB
Speed bump

Speed bump

More than half of AT&T’s wireless customers are paying at least $100 a month for 10GB or more of wireless data on AT&T’s Mobile Share Plans at the same time AT&T continues to throttle its legacy unlimited data customers who use more than 3GB of data on its 3G network or 5GB of data on its 4G LTE network.

AT&T claimed in 2012 it implemented its “fair usage policy” for unlimited customers to assure all could receive reasonable service during peak usage times when cell towers become congested.

AT&T also blames “a serious wireless spectrum crunch” for the speed throttling, implying access to more spectrum could help ease the problem. But there is a much faster way to overcome AT&T’s “spectrum crunch:” agree to pay them more money by ditching that $30 unlimited plan for a tiered plan.

John Stephens, AT&T’s chief financial officer, told investors Wednesday that nothing boosts revenue more than pushing customers into usage-cappped data plans that customers are regularly forced to upgrade.

“On the ARPU (average revenue per user/customer) story, I think the biggest issue with the improvement is people buying the bigger [data] buckets and buying – upping plans,” said Stephens. “We had over 50% of the customer base at the 10GB or bigger plans.”

Stephens added that AT&T benefited from customers upgrading to 4G LTE devices that are handled more efficiently by AT&T’s mobile data network.

Increased usage and upgraded data plans delivered a 20% increase in data billings over the last quarter.

Since 2012 AT&T has paid out more than $50 billion to shareholders through dividends and share buybacks. The company benefited from nearly $20 billion a year in free cash flow and asset sales over the last two years and is expected to repeat those numbers this year. Consolidated revenue at AT&T grew to $33 billion, up $800 million since the same time last year.

Miraculously, despite the “alarming spectrum crunch,” AT&T found more than enough spectrum to award its best customers with a “double data” promotion that turns a 15GB data plan into a 30GB plan, a 20GB plan to 40GB, a 30GB plan to 60GB, a 40GB plan to 80GB, or a 50GB plan to 100GB. Importantly, AT&T boasts its double data promotion won’t “explode” — their language for “expire” — on customers until their contract ends.

Lowering the bar on "unlimited use" customers.

Lowering the bar on “unlimited use” customers.

“Those exploding offers — customers hate those offers,” said AT&T Mobility CEO Ralph de la Vega at a recent investor conference. “Unless they change their mind, we won’t offer those kinds of promotions.”

But de la Vega doesn’t mind leaving the company’s most loyal legacy customers in the penalty box if they cling to their grandfathered unlimited data plans. The throttles stay and the allowances have remained unchanged since first announced, despite the bountiful spectrum obviously ready and available to serve AT&T’s deluxe customers. Unlimited customers are regularly reminded they can easily avoid the throttle — just abandon that unlimited data plan. According to Stephens, more than 80% of AT&T’s customers already have.

The excuses for wireless speed throttles and killing off unlimited data plans at AT&T and Verizon Wireless don’t seem to wash with FCC chairman Thomas Wheeler, who demanded Verizon offer the “rationale for treating customers differently based on the type of data plan to which they subscribe, rather than network architecture or technological factors,” after it announced it was planning speed throttles for its remaining unlimited data plan customers. Verizon canceled the plan after Wheeler began scrutinizing it, but the throttles are still in place at AT&T.

AT&T’s 10GB Mobile Share Plan starts with a $100 data plan. Customers also pay:

  • $10 a month for each auto-based smart-locator;
  • $10 a month for each tablet, camera or game device;
  • $15 a month for each basic phone;
  • $20 a month for each wireless home phone replacement;
  • $20 a month for each connected Internet device;
  • $40 a month for each connected smartphone.

A family of four with four smartphones, a tablet, and AT&T’s wireless home phone replacement would be billed $290 a month before at least $39 in taxes, fees, and surcharges — well north of $300 a month for most.

T-Mobile: AT&T Gouges Us With Data Roaming Rates 150% Higher Than Average

Phillip Dampier October 22, 2014 AT&T, Broadband Speed, Competition, Consumer News, Data Caps, Public Policy & Gov't, Rural Broadband, T-Mobile, Wireless Broadband Comments Off on T-Mobile: AT&T Gouges Us With Data Roaming Rates 150% Higher Than Average

bill shockT-Mobile has asked the Federal Communications Commission to investigate AT&T’s “artificially high roaming rates” charged when its customers travel outside of T-Mobile’s home service area.

T-Mobile is heavily reliant on AT&T for roaming service outside of major cities and the country’s smallest national wireless carrier complains AT&T is using their market power to put it at a major disadvantage, which could force new limits on roaming access in some areas.

T-Mobile provided examples of the damage already done by AT&T’s roaming rates:

“Limitless Mobile has severely restricted its customers’ access to AT&T’s network ‘for the sole reason that AT&T’s data roaming rates are too high and by continuing roaming access, Limitless could not maintain a commercially competitive retail wireless data offering to the general public,’” T-Mobile told the FCC.

The Rural Wireless Association noted that competing carriers “cannot sustain the provision of data roaming services if [they] must provide that service at a loss.”

The problem of data roaming rates is getting larger as carrier agreements are due for renewal at many mobile providers. Independent cellular companies are finding AT&T unwilling to renew at prices and terms comparable to their existing contracts. Instead, they face renewal rates that average a minimum of 10 and as much as 33 times higher than the national carriers’ retail rates.

For example, T-Mobile’s agreement with AT&T includes a data roaming rate that is now 150 percent higher than the average domestic rate that T-Mobile pays for data roaming.

This is one thousand percent higher than the data roaming rate negotiated between Leap Wireless and MetroPCS prior to their respective acquisitions, wrote T-Mobile.

With the stark price increases, carriers have begun imposing limits, including speed throttling and data caps, on customers when roaming on AT&T’s network.

t-mobile-set-recordBecause of AT&T’s artificially high roaming rates, T-Mobile wireless customers roaming in South Africa have a better user experience than customers roaming on AT&T’s network in South Dakota, argues T-Mobile. Their speed is twice as fast, and their data usage is unlimited.

T-Mobile is asking the FCC to intervene by establishing some type of standard about what constitutes “commercially reasonable” roaming rates as part of its 2011 Data Roaming Order, designed to protect competition.

This year, carriers dependent on Verizon Wireless or AT&T to help deliver “nationwide coverage” are negotiating roaming access to the companies’ 4G LTE networks for the first time. Most roaming agreements used to only cover 3G service, delivered at a slower speed.

If carriers like Sprint and T-Mobile are unable to negotiate fair terms, both companies will be at a major competitive disadvantage, relegated to providing only regional coverage or charging higher prices for roaming service.

AT&T vice president of regulatory affairs Joan Marsh said T-Mobile’s request bordered on being illegal, in direct violation of the Telecommunications Act. Marsh argued T-Mobile and other carriers should be incentivized to build their own networks instead of relying on cheap roaming access from companies like AT&T. Marsh added any move by the FCC to set rates or benchmarks would be beyond the FCC’s mandate. Wireless carrier rates are deregulated and not subject to common carrier regulation.

The Capitol Forum’s Insightful Review of the Comcast-Time Warner Merger Deal: A Tough Sell

be mineWall Street is increasingly pessimistic about Comcast and Time Warner Cable pulling off their merger deal as regulators stop the clock to take a closer look at the transaction.

The Capitol Forum, an in-depth news and analysis service dedicated to informing policymakers, investors, and industry stakeholders on how policy affects market competition, specializes in examining marketplace mergers and their potential impact on American consumers and the general economy. The group has shared a copy of their assessment — “Comcast/Time Warner Cable: A Closer Look at FCC, DOJ Decision Processes; Merits and Politics May Drive Merger Challenge, Especially as Wheeler Unlikely to Embrace Title II Regulation for Net Neutrality” — with Stop the Cap! and we’re sharing a summary of the report with our readers.

The two most important government agencies reviewing the merger proposal are the Federal Communications Commission and the Department of Justice. The FCC is responsible for overseeing telecommunications in the United States and is also tasked with reviewing telecom industry mergers to verify if they are in the public interest. The Department of Justice becomes involved in big mergers as well, concerned with compliance with antitrust and other laws.

In many instances, the two agencies work separately and independently to review merger proposals, but not so with Comcast and Time Warner Cable.

Sources tell Capitol Forum there is a high level of coordination and information sharing between DOJ and the FCC, potentially positioning the two agencies in a stronger legal position if they jointly challenge the merger. Readers may recall AT&T’s attempt to buy T-Mobile was thwarted in 2011 when the FCC followed the DOJ’s lead in jointly challenging the merger on competition and antitrust grounds. With a united front against the deal in Washington, AT&T quickly capitulated.

comcast cartoonDespite a blizzard of Comcast talking points claiming the cable industry is fiercely competitive, Capitol Forum’s report indicates the DOJ staff level believes the cable industry suffers dearly from a lack of competition already, and allowing further marketplace concentration would exacerbate an already difficult problem.

Capitol Forum reports the DOJ’s staff is inclined to “take an aggressive posture with regards to [antitrust] enforcement.”

The DOJ would certainly not be walking the beltway plank to its political doom if it ultimately decides to oppose the merger.

Few on Capitol Hill are likely to fiercely advocate for a cable company generally despised by their constituents. The Capitol Forum report notes that Comcast faces powerful opposition and its political support is overstated. Comcast’s lobbying efforts and ties to President Obama and several high level Democrats have also been widely exposed in the media, which makes it more difficult for D.C.’s powerful to be seen carrying Comcast’s water.

In fact, the report indicates a regulatory challenge against Comcast and Time Warner Cable would face considerably less political opposition than what the FCC faces if it reclassifies broadband as a “telecommunications service,” protecting Net Neutrality and exposing the industry to stronger regulatory oversight.

The report suggests FCC Chairman Thomas Wheeler, who seems intent on opposing reclassification of broadband under Title II, may appease his critics by taking a stronger stance on the Comcast/Time Warner deal instead.

Wheeler has already expressed concern about the state of competitiveness of American broadband. He considers providers capable of delivering at least 25Mbps part of broadband’s key market, which in many communities means a monopoly for the local cable operator.

Understanding “The Public Interest” and the Implications of a Combined Comcast/Time Warner Cable on Competition

comcastbuy_400_241The FCC will review the transaction pursuant to Sections 214 and 310(d) of the Communications Act of 1934, in order to ensure that “public interest, convenience, and necessity will be served thereby.”

The merger proposal must also demonstrate it does not violate antitrust laws.

It is here that merger opponents have a wealth of arguments to use against Comcast and Time Warner Cable.

Despite Comcast’s insistence the deal would have no competitive implications, the Capitol Forum reports the merger’s potential anticompetitive effects are “widely recognized and evidence from the investigation could provide DOJ and FCC with a solid foundation to challenge the merger.”

Although the two cable companies don’t directly compete with each other (itself a warning sign of an already noncompetitive marketplace), the report finds “a wide array of anti-competitive effects and several antitrust theories” that would implicate the cable company in a Clayton Act violation.

Comcast is betting heavily on its surface argument that by the very fact customers will not see any change in the number of competitors delivering service to their area, the merger should easily clear any antitrust hurdles. That argument makes it more difficult for the DOJ to fall back on the usual market concentration precedents that would prevent such a colossal merger deal. To argue excessive horizontal integration — the enlarging of Comcast’s territory — the DOJ would first have to prove Comcast’s size in comparison with other cable companies is a reason for the courts to shoot down the deal. Or it could bypass Comcast’s favorite argument and move to the issue of vertical integration — one company’s ability to control not just the pipes that deliver content, but also the content itself.

octopusHere the examples of potential abuse are plentiful:

  • Comcast would enjoy increased power to force cable programmers to favor Comcast in cable programming pricing and policies while allowing it to demand restrictions on competitive online video competitors or restrict access to popular cable programming;
  • Comcast could impose data caps and usage-based pricing to deter online viewing while exempting its own content by delivering it over a Wi-Fi enabled gateway, game console or set top box, claiming all are unrelated to Comcast’s broadband Internet service or network;
  • Force consumers to use Comcast set top boxes that would not support competing providers’ online video;
  • Use interconnection agreements as a clever way to bypass the paid prioritization Net Neutrality debate. Netflix and other content producers would be forced to compensate Comcast for reliable access to its broadband customers;
  • Noting AT&T has declared U-verse can not effectively succeed in the cable television business without combining its customer base with DirecTV to qualify for better volume discounts, there is clear evidence that a super-sized Comcast could command discounts new entrants like Google Fiber could never hope to get, putting them at a distinct price disadvantage.

The FCC’s scrutiny of Comcast’s merger deal has already uncovered evidence previously unavailable because of non-disclosure agreements which show Comcast’s heavy hand already at work.

The report notes Michael Mooney, a senior vice president and group general counsel at Level 3, told the Capitol Forum the dispute earlier this year between Netflix and Comcast could have been resolved in about five minutes had Comcast added a port to relieve congestion at an interconnection point. The cost? Just $5,000. Had Comcast been willing to spend the money, millions of Comcast customers would have never experienced problems using Netflix.

Whether Comcast is ultimately deemed too large to permit another consolidating merger or whether it is given conditional approval to absorb Time Warner Cable remains a close call, according to the Capitol Forum, despite the fact consumers have urged regulators for something slightly more concrete – a single sentence, total denial of its application.

[flv]http://www.phillipdampier.com/video/Capitol Forum The Consumer Welfare Test.mp4[/flv]

The Capitol Forum broadly explores how the “consumer welfare standard” has become a part of the antitrust review process over the last 30 years. Sometimes, a strict antitrust test is not sufficient to protect “the public interest” of consumers, and allows the dominant player(s) to harm competition. In the digital economy, corporate mergers that empower companies to restrict innovation can prove far more damaging than classic monopoly abuse. (15:52)

Marriott’s Scheme to Force Guests to Use $1,000 Hotel Hotspots Derailed by FCC; Fined $600K

Phillip Dampier October 8, 2014 Broadband "Shortage", Competition, Consumer News, Data Caps, Public Policy & Gov't, Wireless Broadband Comments Off on Marriott’s Scheme to Force Guests to Use $1,000 Hotel Hotspots Derailed by FCC; Fined $600K
Marriott's Gaylord Opryland Resort made sure it had a corner on the Wi-Fi market by blocking the competition and charging $250-1,000 to win access to the hotel's Wi-Fi.

Marriott’s Gaylord Opryland Resort in Nashville made sure it had a corner on the Wi-Fi market by blocking the competition and charging $250-1,000 to gain access to the hotel’s Wi-Fi.

Marriott International, Inc. and its subsidiary, Marriott Hotel Services, Inc., have been fined $600,000 after a Federal Communications Commission investigation uncovered hotel employees intentionally interfering with personal Wi-Fi networks during convention events, forcing guests and exhibitors to use the hotel’s Wi-Fi network, at a cost of up to $1,000.

The FCC Enforcement Bureau, in response to a guest’s complaint that the hotel was intentionally jamming every Wi-Fi network except their own, discovered hotel workers were using a Wi-Fi monitoring system at the Gaylord Opryland in Nashville to prevent visitors from using their personal mobile broadband hotspots, a serious violation of Section 333 of the Communications Act.

Employees of Marriott, which has managed the day-to-day operations of the Gaylord Opryland since 2012, were tasked with using features of the hotel’s Wi-Fi monitoring system at the Gaylord Opryland to contain and/or de-authenticate guest-created Wi-Fi hotspot access points in the conference facilities. In some cases, employees sent de-authentication packets to the targeted access points, which would dissociate consumers’ devices from their own Wi-Fi hotspots and lock out the devices to keep them from connecting in the future.

Guests and exhibitors arriving expecting to use their AT&T, Verizon, Sprint or T-Mobile mobile hotspots found them completely disabled while on the property. Even adjacent Wi-Fi networks from nearby properties stopped working the moment users entered or approached the hotel grounds.

At the same time the hotel was blocking connections, Marriott charged conference exhibitors and guests dependent on Wi-Fi to run their exhibits or manage business matters connection fees ranging from $250-$1,000 per device for access to the Gaylord’s Wi-Fi network, the only network available.

“Consumers who purchase cellular data plans should be able to use them without fear that their personal Internet connection will be blocked by their hotel or conference center,” said Enforcement Bureau chief Travis LeBlanc. “It is unacceptable for any hotel to intentionally disable personal hotspots while also charging consumers and small businesses high fees to use the hotel’s own Wi-Fi network. This practice puts consumers in the untenable position of either paying twice for the same service or forgoing Internet access altogether.”

Marriott claimed they were just protecting their guests from cyber attacks and the FCC’s decision to fine the hotel has created confusion across the hospitality industry.

marriott-logo“Marriott has a strong interest in ensuring that when our guests use our Wi-Fi service, they will be protected from rogue wireless hot spots that can cause degraded service, insidious cyber-attacks and identity theft,” Marriott said in a statement. “Like many other institutions and companies in a wide variety of industries, including hospitals and universities, the Gaylord Opryland protected its Wi-Fi network by using FCC-authorized equipment provided by well-known, reputable manufacturers. We believe that the Opryland’s actions were lawful. We will continue to encourage the FCC to pursue a rule making in order to eliminate the ongoing confusion resulting from today’s action and to assess the merits of its underlying policy.”

Several hotel chains have turned to Internet connectivity as a revenue generator, but few hotels have asked as much as Marriott. Some hotel chains charge as much as $22 per day for permission to connect to the facility’s Wi-Fi network, convincing many guests to use their own personal mobile devices as Wi-Fi hotspots instead. But Marriott’s debacle with the FCC allowed several chains to get an edge on the competition and trumpet they are not in the Wi-Fi jamming business:

  • Hilton Hotels:  “We do not block or jam any wireless transmissions at our properties;”
  • Kempinski and Hyatt Hotels: There are no policies that allow our hotels to jam, block or prevent guests’ use of personal Wi-Fi hotspots;
  • InterContinental Hotels Group (Candlewood Suites, Crowne Plaza, Even, Holiday Inn, Holiday Inn Express, Hotel Indigo, Hualuxe, InterContinental and Staybridge Suites) has no problem with guests using personal networks on hotel property, but why bother when any guest can enroll in the IHG Rewards Club at no charge which gives them free unlimited access to the chain’s Wi-Fi;
  • The majority of Wyndham’s hotels are independently owned and operated, but most already offer complimentary Wi-Fi to guests, according to a hotel spokesperson.

Marriott was convinced it was not in violation of the law because it was not using an illegal signal jammer, commonly available overseas and often used in restaurants and theaters to silence cell phones. Marriott’s guests could still make and receive phone calls and text messages. But the Enforcement Bureau found that argument uncompelling after discovering hotel employees intentionally targeting any non-hotel hotspots they could locate to disconnect or block consumers from using them.

The $600,000 fine, the first of its kind for an incident of this kind, won’t mean much to the Marriott Gaylord Opryland. For staying at one of the hotel’s 3,000 rooms, Marriott charges $18 a day in “resort fees” for the “free Internet access,” $6.99 a day for enhanced Internet speed “suitable for downloading files, video chat and video streaming,” and $21-28 a day to park your car there.

But the FCC enforcement action has put a stop to this kind of access blockade spreading further. Under the terms of Marriott’s agreement with the FCC announced today, Marriott must cease the unlawful use of Wi-Fi blocking technology and take significant steps to improve how it monitors and uses its Wi-Fi technology at the Gaylord Opryland. Marriott must institute a compliance plan and file compliance and usage reports with the Bureau every three months for three years, including information documenting any use of access point containment features at any U.S. property that Marriott manages or owns.

Marsha Blackburn Angry that FCC Chairman Wants to Run Tenn. Broadband… When AT&T Should

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tennessee, but mostly AT&T and Comcast)

Rep. Marsha Blackburn (R-Tenn.) is angry that FCC chairman Tom Wheeler is sticking his nose into AT&T, Comcast, and Charter Communications’ private playground — the state of Tennessee.

In an editorial published by The Tennessean, Blackburn throws a fit that an “unelected” bureaucrat not only believes what’s best for her state, but is now openly talking about preempting state laws that ban public broadband networks:

Legislatures are the entities who should be making these decisions. Legislatures govern what municipalities can and cannot do. The principles of federalism and state delegation of power keep government’s power in check. When a state determines that municipalities should be limited in experimenting in the private broadband market, it’s usually because the state had a good reason — to help protect public investments in education and infrastructure or to protect taxpayers from having to bailout an unproven and unsustainable project.

Chairman Wheeler has repeatedly stated that he intends to preempt the states’ sovereign role when it comes to this issue. His statements assume that Washington knows best. However, Washington often forgets that the right answers don’t always come from the top down.

It’s unfortunate Rep. Blackburn’s convictions don’t extend to corporate money and influence in the public dialogue about broadband. The “good reason” states have limited public broadband come in the form of a check, either presented directly to politicians like Blackburn, who has received so many contributions from AT&T she could cross daily exercise off her “things to do” list just running to the bank, or through positive press from front groups, notably the corporate-funded American Legislative Exchange Council (ALEC).

According to campaign finance data compiled by the Center for Responsive Politics, three of Blackburn’s largest career donors are employees and PACs affiliated with AT&T, Comcast and Verizon. Blackburn has also taken $56,000 from the National Cable & Telecommunications Association, the lobby for the big telecoms.

Combined, those organizations donated more than $200,000 to Blackburn. In comparison, her largest single donor is a PAC associated with Memphis-based FedEx Corp., which donated $68,500.

Phillip "States' rights don't extend to local rights in Blackburn's ideological world" Dampier

Phillip “States’ rights don’t extend to local rights in Blackburn’s ideological world” Dampier

Blackburn’s commentary tests the patience of the reality-based community, particularly when she argues that keeping public broadband out protects investments in education. As her rural constituents already know, 21st century broadband is often unavailable in rural Tennessee, and that includes many schools. Stop the Cap! regularly receives letters from rural Americans who complain they have to drive their kids to a Wi-Fi enabled parking lot at a fast food restaurant, town library, or even hunt for an unintentionally open Wi-Fi connection in a private home, just to complete homework assignments that require a broadband connection.

Blackburn’s favorite telecommunication’s company — AT&T — has petitioned the state legislature to allow it to permanently disconnect DSL and landline service in rural areas of the state, forcing customers to a perilous wireless data experience that doesn’t work as well as AT&T promises. While Blackburn complains about the threat of municipal broadband, she says and does nothing about the very real possibility AT&T will be allowed to make things even worse for rural constituents in her own state.

Who does Blackburn believe will ride to the rescue of rural America? Certainly not AT&T, which doesn’t want the expense of maintaining wired broadband service in less profitable rural areas. Comcast won’t even run cable lines into small communities. In fact, evidence has shown for at least a century, whether it is electricity, telephone, or broadband service, when large corporate entities don’t see profits, they won’t provide the service and communities usually have to do the job themselves. But this time those communities are handcuffed in states that have enacted municipal broadband bans literally written by incumbent phone and cable companies and shepherded into the state legislature through front groups like ALEC.

Chairman Wheeler is in an excellent position to understand the big picture, far better than Blackburn’s limited knowledge largely absorbed from AT&T’s talking points. After all, Wheeler comes from the cable and wireless industry and knows very well how the game is played. Wheeler has never said that Washington knows best, but he has made it clear state and federal legislators who support anti-competitive measures like municipal broadband bans don’t have a monopoly on good ideas either — they just have monopolies.

That isn’t good enough for Congresswoman Blackburn, who sought to strip funding from the FCC to punish the agency for crossing AT&T, Comcast and other telecom companies:

Marsha is an avowed member of the AT&T Fan Club.

Marsha is an avowed member of the AT&T Fan Club.

In July, I passed an amendment in Congress that would prohibit taxpayer funds from being used by the FCC to pre-empt state municipal broadband laws. My amendment doesn’t prevent Chattanooga or any other city in Tennessee from being able to engage in municipal broadband. It just keeps those decisions at the state level. Tennessee’s state law that allowed Chattanooga and other cities to engage in municipal broadband will continue to exist without any interference from the FCC. Tennessee should be able to adjust its law as it sees fit, instead of Washington dictating to us.

Notice that Blackburn’s ideological fortitude has loopholes that protect a very important success story — EPB Fiber in Chattanooga, one of the first to offer gigabit broadband service. If municipal broadband is such a threat to common sense, why the free pass for EPB? In fact, it is networks like EPB that expose the nonsense on offer from Blackburn and her industry friends that claim public broadband networks are failures and money pits.

In fact, Blackburn’s idea of states’ rights never seems to extend to local communities across Tennessee that would have seen local ordinances gutted by Blackburn’s telecommunications policies and proposed bills. In 2005, Blackburn introduced the ironically named Video Choice Act of 2005 which, among other things:

  • Would have granted a nationwide video franchise system that would end all local oversight over rights-of-way for the benefit of incumbent telephone companies, but not for cable or other new competitors like Google Fiber;
  • Strips away all local oversight of cable and telephone company operations that allowed local jurisdictions to ensure providers follow local laws and rules;
  • Prohibited any mechanism on the local level to collect franchise payments;
  • Eliminated any rules forbidding “redlining” — when a provider only chooses select parts of a community to serve.

More recently, Blackburn has been on board favoring legislation restricting local communities from having a full say on the placement of cell towers. Current Tennessee law already imposes restrictions on local communities trying to refuse requests from AT&T, Verizon and others to place new cell towers wherever they like. She is also in favor of highest-bidder wins spectrum auctions that could allow AT&T and Verizon to use their enormous financial resources to snap up new spectrum and find ways to hoard it to keep it away from competitors.

Not everyone in Tennessee appreciated Blackburn’s remarks.

Nashville resident Paul Felton got equal time in the newspaper to refute Blackburn’s claims:

Rep. Marsha Blackburn is on her high horse (Tennessee Voices, Oct. 3) about the idea of the Federal Communications Commission opposing laws against municipal broadband networks, wrapping herself in the mantle of states’ rights. We know that behind all “states’ rights” indignation is “corporate rights” protection.

The last I heard, there was only one Internet, and anyone can log into Amazon or healthcare.gov just as easily from any state. Or any budget.

No, this is about the one Internet being controlled by one corporate giant (or two) in each area, who want to control price and broadband speed, and now want to link the two. They don’t want competition from any pesky municipal providers hellbent on providing the same speed for all users, at a lower price. Check the lobbying efforts against egalitarian ideas to find out which side of an issue Marsha Blackburn always comes down on.

But comments like these don’t deter Rep. Blackburn.

“Congress cannot sit idly by and let a federal agency trample on our states’ rights,” she wrote, but we believe she meant to say ‘AT&T’s rights.’

“Besides, the FCC should be tackling other priorities where political consensus exists, like deploying spectrum into the marketplace, making the Universal Service Fund more effective, protecting consumers, improving emergency communications and other important policies,” Blackburn wrote.

Remarkably, that priority list just so happens to mirror AT&T’s own legislative agenda. Perhaps that is just a coincidence.

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