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Call to Action: AT&T’s Profit Protection Act Resurfaces in South Carolina; Get On the Phones!

Draft legislation to make life difficult for community broadband in South Carolina has resurfaced this week in the state Senate Judiciary Committee.  The legislation, H. 3508, would hamstring communities from setting up fiber networks that are attracting hundreds of millions of dollars of new investments from digital economy businesses like Amazon.com in the nearby state of Tennessee.

Lobbyists from AT&T are aggressively pushing the measure, and no doubt Time Warner Cable will also deliver its support.

The protectionist legislation, which delivers all of the benefits to status quo providers like AT&T inside the Palmetto State, guarantees local officials cannot pitch advanced, community-owned fiber networks to companies like Amazon, Google, and other billion-dollar businesses that are expanding across the southern United States.

The implications are so dire, the South Carolina Association of Counties and the Municipal Association of South Carolina vociferously opposed the legislation last year.  On the ground in rural Orangeburg County, administrator Bill Clark understands first hand the implications of broadband scarcity.  He was shocked to discover the bill considers any connection that achieves the woeful speed of 190kbps would qualify as “broadband,” no doubt to allow AT&T to claim its 3G wireless broadband service already “well serves” the state of South Carolina.  If AT&T can demonstrate it delivers at least 190kbps service in South Carolina, even if capped to just a few gigabytes of usage per month, the company can claim South Carolina does not have a broadband problem.

Stop the Cap! readers inside South Carolina regularly complain about the state’s lousy broadband on the ground.  Our regular reader Fred in Laurens is stuck between a broadband rock and a hard place, navigating poor service from Frontier Communications, AT&T, and bottom-rated Charter Cable.  He can’t wait for a community provider to set up in South Carolina.

Unfortunately for Fred and other South Carolina residents, special interests in the telecommunications industry have gone out of their way petitioning state government to set up obstacles to community broadband while providers do little or nothing to upgrade broadband in the rural corners of the state.

Back to push more special interest legislation to keep community-owned broadband from taking hold.

Now AT&T is back to push for even stronger restrictions, and as Chris Mitchell from Community Broadband Networks wrote during last year’s tangle, this legislation will effectively make any local government ownership of telecommunications facilities impossible:

The bill is blatantly protectionist for AT&T interests, throwing South Carolina’s communities under the bus. But as usual, these decisions about a “level playing field” are made by legislators solely “educated” by big telco lobbyists and who are dependent on companies like AT&T for campaign funds. Even if AT&T’s campaign cash were not involved, their lobbyists talk to these legislators every day whereas local communities and advocates for broadband subscribers simply cannot match that influence.

We see the same unlevel playing field, tilted toward massive companies like AT&T, in legislatures as we do locally when communities compete against big incumbents with their own networks. Despite having almost all the advantages, they use their tremendous power and create even more by pushing laws to effectively strip communities of the sole tool they possess to ensure the digital economy does not pass them by.

South Carolina’s access to broadband is quite poor — 8th worst in the nation in access to the the kinds of connections that allow one to take advantage of the full Internet according to a recent FCC report [pdf].

Some of the provisions on display are remarkably transparent for AT&T’s own interests:

No reasonable provider will invest in expensive broadband infrastructure in an unserved area if it must stop providing communications services within 12 months of a Commission finding that a private provider has begun to offer at least 190 kilobits per second to more than 10 percent of the households in the area.

Public sector entities will be subjected to “the same local, state, and federal regulatory, statutory, and other legal requirements to which nongovernment‑owned communications service providers” are held. This is similar language we see in North Carolina and other states, betraying the total lack of ignorance on telecommunications policy among legislators and their staff.

Requiring public communications providers to comply with all applicable local, state, and federal requirements would be appropriate, but requiring them to meet the same requirements that non-government entities must meet would be tremendously time-consuming, burdensome, and costly for public entities. It would also lead to endless disputes over which requirements public entities should comply with and how they should do so. For example, incumbent local exchange carriers, competitive local exchange carriers, Internet service providers, cable companies, private non-profit entities, and other communications providers are all subject to different requirements.

Requiring public communications providers to comply with all requirements that apply to private communications providers will not achieve a “level playing field” unless private providers are simultaneously required to comply with all open records, procurement, civil service, and other requirements that apply to public entities.

Call to Action: Contact these members of the South Carolina Senate Judiciary Committee right away and let them know you oppose H.3508:

(click names of individual members to obtain direct contact information)

Points to Share:

  • While South Carolina ponders another bill tying the hands behind the backs of our community leaders, Tennessee’s community fiber network in Chattanooga just helped that state score thousands of new jobs for an Amazon.com distribution center.  Amazon is investing hundreds of millions in the state and local economy, creating new high quality jobs.  They chose Chattanooga because it had the digital infrastructure at a price that made that community too attractive to ignore.  Meanwhile, AT&T and other companies do not offer this level of service without a huge upfront commitment and lengthy delay to provision facilities.  That’s time for companies to look to states like Tennessee instead, where they can get the right service at the right price in days, not months.
  • South Carolina delivers the country’s 9th worst broadband.  What high tech company will consider coming to our state when broadband service is so lacking?  Since private providers have had ample opportunity to deliver service themselves, and failed to do so, why can’t local communities decide what is best for themselves, free from special interest interference from big companies like AT&T.
  • Why is AT&T setting the broadband bar so low in South Carolina when other states are enjoying fiber to the home service at lightning fast speeds?  The bar is set so low at 190kbps, it leaves South Carolina in the dust.  Our schools, public safety networks, health care facilities, and economy deserve better and could get a major economic boost from construction of networks similar to that in Chattanooga.  If it doesn’t make sense, communities won’t build it. If it does, why are we letting AT&T effectively make the final decision?
  • Public broadband does not have to risk taxpayer dollars.  Successful fiber networks are being built in communities across the country at no risk to taxpayers.
  • South Carolina must compete in the high tech economy.  We cannot do that with low speed wireless networks and DSL.  H. 3508 is corporate protectionism at its worst and will leave South Carolina without the flexibility to compete with states like Tennessee for future private sector investment.  What is more important — protecting AT&T’s incumbent copper wire facilities or attracting hundreds of millions of dollars in investment from private companies like Google and Amazon?

You Can’t Have This: Wyoming’s Fight for Better Broadband Mired in Politics and Business Interests

Green River, Rock Springs, and other communities served by Wyoming.com

Wyoming is one of America’s most broadband-challenged, least populated states.  With just over 560,000 residents spread across its often mountainous terrain, broadband service is nothing to take for granted.  Larger communities have limited access to Qwest DSL and cable broadband, but large sections of the state rely on independent wireless providers as their only choice, or they find no broadband service at all.

In this spartan digital world, many residents are surprised Wyoming is criss-crossed by national fiber-optic lines moving traffic across the country.  It’s just that in most instances, individuals are not allowed to access it.

Wyoming.com, a privately-owned Wireless ISP, wants to expand service to Farson and South Pass City — two communities further north that have no hope of getting anything beyond dial-up or satellite fraudband service.  The commercial provider, working with the administrators of the fiber network, has access to federal grant money to expand service to unserved communities, and improve it in underserved areas like Rock Springs.  But that cannot happen if the venture is refused access to a 48-strand “middle-mile” fiber-optic line financed by public dollars and managed by the Joint Powers Telecommunications Board — a partnership between the Green River City Council and Rock Springs local government.

The notion Wyoming.com could get access to a taxpayer-financed network ruffles Tom McCullough, the city’s liaison to the Joint Powers board.  He’s opposed to allowing any government resource to benefit the public at the expense of the local cable monopoly — Sweetwater Cable TV, which doesn’t even serve most of the areas that would benefit from enhanced Internet access.  McCullough argues it violates a 2007 Wyoming law that prohibits public broadband projects when private providers provide access to similar services anywhere within the boundaries of a city or town.  The law came in response to a public broadband project undertaken in Powell that upset the state’s cable and phone companies.

If residents want access to the fiber network they paid for, they have to visit Western Wyoming Community College or the Sweetwater County Library System and use public terminals there.

McCullough so dislikes the fiber project, he has tried to disband the Joint Powers Board that manages it twice, suggesting he has enough support to sell off the entire network to anyone interested (presumably at a substantial discount.)

Shea

Local residents who remain stuck with dial-up or who live outside of Sweetwater Cable’s service area are furious.

“There are some types around here who can’t see past Rush Limbaugh — anything the government does is automatically bad and must be taken down, even if taxpayers paid to build it in the first place,” complains Stop the Cap! reader Sue who lives in Farson.  “Farson has nothing to do with Sweetwater Cable, but because a handful of politicians are looking out for the cable company, worried Wyoming.com is going to get one-up on them, that means we can’t have broadband.”

Steve Shea, chairman of the telecommunications board, is unimpressed with McCullough’s arguments as well, and accused him of allowing his personal friendship with Sweetwater Cable TV’s owner — Al Carollo — to cloud his judgment.

Shea says Wyoming’s local governments are often fiercely protective of locally-owned businesses, and told the Green River Star the Board has historically faced the attitude that “local business deserves a monopoly, no matter what.”  Sweetwater Cable TV is locally owned and operated.

In fact, Shea says original designs for the fiber network were to provide fiber-to-the-home service in the area.  Since a national fiber optic cable was already running adjacent to the community, getting a connection to it was relatively simple.  Extending service to individual homeowners was another matter.  Political opposition to “government broadband” and demagoguery about its cost and implications from private providers ultimately killed the project.

Shea documented his experience as commercial providers and their dollar-a-holler industry-connected supporters fought the fiber project:

  • Opposition comes from everyone in the Telecom business;
  • Opposition will be in your face constantly;
  • Opposition will never run out of lies;
  • Opposition is ready to strike at any time and at any place;
  • Opposition will engage in back-room politics against you;
  • Opposition will try to get Power Brokers and Influentials on their side;
  • Opposition will spend as much money as needed to defeat you.

Local cable and wireless providers engage in a tangle in southwestern Wyoming

As Wyoming’s broadband rankings slip further and further behind much of the rest of the country, Shea hopes attitudes about the fiber network have changed, especially when residents learn Sweetwater Cable was offered access to the network as well, and they declined.

Shea shared that the long history of opposition to the project started with suggestions wireless broadband was better than fiber, or that broadband over power lines could do the same or better than fiber networks.  He even battled contentions that existing broadband networks provided “fast enough” service for Wyoming.  Today, it has extended to allowing a private company to engage in a public-private partnership.  The other providers are still opposed.

“You have to refute these arguments over, and over, and over again. Your opposition will oppose you at every corner, and will call in all of their political favors to derail your fiber project,” Shea writes.

“It’s Wyoming’s version of North Carolina,” Sue writes from her Hughes Satellite address.  “Sweetwater Cable doesn’t want access to the fiber themselves, and they want to make sure you don’t access it either, even though the family I have down there tells me their cable Internet service sucks because the cable company can’t handle the traffic.”

Sweetwater Cable gets their access from Qwest.

What bothers Sue and some other local residents about the squabble is that it is inherently political and allows an existing, underutilized fiber line to sit mostly unused when expanded broadband is desperately needed in Wyoming.  In fact, some consider it a scandal among special interests.

“They don’t care about better broadband — they only care about their political and industry friends,” Sue complains.  “When will people wake up and realize that whether it is North Carolina or Wyoming, these policies and laws don’t give anyone broadband — they keep us from getting it.”

Shea’s observation that opponents’ use of backroom politics seems to have been right on point.  On Tuesday, as the Board met to discuss Wyoming.com’s proposal, Shea was effectively forced out and announced his resignation after the owner of Sweetwater Cable TV said he contacted an attorney to look at whether Shea’s tenure on the board was legal.

Senator Ted Stevens – His Final Flight Was Sponsored By Telecom Lobbyists & D.C. Insiders

Phillip Dampier August 18, 2010 Data Caps, Editorial & Site News, GCI (Alaska), Net Neutrality, Public Policy & Gov't Comments Off on Senator Ted Stevens – His Final Flight Was Sponsored By Telecom Lobbyists & D.C. Insiders

Stevens

Sen. Ted Stevens death last week in a plane crash has shined a light on increasingly cozy relationships between Alaska’s most powerful politicians and the special interests that court their support.  Winning favor with a politician that can control and direct financial resources from Washington can secure your company millions in taxpayer dollars and legislative favors in America’s most rural state.

When he died, the former Alaskan senator was on his way, as an invited guest, to an isolated lodge owned and maintained for the use of executives at Alaska’s largest broadband provider — GCI.  Time alone in the Alaskan wilderness delivered the ultimate captive audience for those the company sought to influence and Stevens was always a company favorite.

Accompanying Stevens on the doomed flight were GCI’s senior lobbyist Dana Tindall and William D. Phillips Sr., a lawyer, lobbyist and former chief of staff for Mr. Stevens.  Both also perished in the crash.

Even after Stevens was voted out of office after being initially found guilty in a federal corruption trial, special interests like GCI continued to court Stevens, who all-too-willingly mixed business and pleasure — including the ill-fated fishing trip sponsored by the Alaskan telecom company.

Stevens didn’t go quietly out of politics after losing to Democrat Mark Begich in 2008.  The New York Times noted he split his time between Washington and Alaska, providing “consulting” services and worked on resource issues.

His close connections to beltway politics kept him in favor among Alaska’s corporate interests, many of whom had supported Stevens financially and rhetorically for decades.

Tindall’s close relationship to Stevens paid GCI dividends in favors and support — both of which they returned in the form of generous campaign contributions, as the Times reports:

Ms. Tindall, 48, did not work for Mr. Stevens, but several people said they had a strong mutual respect and a warm rapport. She is credited with helping the company she worked for, GCI, grow rapidly in Alaska at the same time that Mr. Stevens was influential in telecommunications issues in Congress. He frequently brought members of the Federal Communications Commission to Alaska and helped steer money toward improving communications in rural areas. Another of his former chiefs of staff, Greg Chapados, is a vice president at GCI.

Tindall

“Senator Stevens was instrumental in helping get a satellite project started so that people in Alaska could watch same-day television and live events,” said Mike Porcaro, a radio personality and advertising executive whose clients include GCI. Mr. Porcaro recalled not being able to watch live network television in Alaska as late as the 1970s. “We went from the 1800s to the 20th century in one day, mostly because of him,” Mr. Porcaro said.

Executives at GCI were generous campaign contributors to Mr. Stevens. Since 1994, Ms. Tindall was the most generous, donating $7,100 to his campaigns, records show. But in 2007 and 2008, as the corruption case surrounded Mr. Stevens, Ms. Tindall and other GCI executives gave less. Ms. Tindall initially gave $1,000 that year, though she later reduced the amount to $400.

Roberta Graham, a public relations executive and a close friend of Ms. Tindall’s, said Ms. Tindall and Mr. Stevens were “kindred spirits,” similarly tenacious and dedicated to their work.

GCI can afford to wine and dine Alaska’s politicians from the rate hikes they will visit on their broadband customers with a proposed Internet Overcharging scheme that will limit customers to how much Internet access they can enjoy.

That abusive pricing is something Senator Stevens would have undoubtedly supported, even if he lacked an understanding of its implications.

The late senator embarrassed himself in 2006 when he sought to defend his friends in the telecommunications industry against Net Neutrality.  At one point, Stevens reduced the Internet down to a “series of tubes.”

But then companies like GCI didn’t contribute generously to his campaign for his broadband knowledge — they just wanted to make sure he was a safe vote in their column.

Special Report: One Year Moratorium on Muni-Broadband in North Carolina: “The Crazies Aren’t Gonna Like This”

Senator Hoyle turns his back on consumers and reads from his industry-provided talking points to stop municipal broadband

[Phillip Dampier co-authored this piece.]

North Carolina communities seeking to provide Internet access to their residents would have to wait a year while legislators argue over their terms of entry under a revised bill that swept through the Senate Finance Committee yesterday on a voice vote.

S1209, originally a poison pill bill that would effectively kill municipal broadband projects, was revised into a demand for further study, accompanied by a one-year moratorium for any city contemplating its own broadband project.

That concerns officials in several cities across the state, especially Greensboro, who wants to preserve the option of municipal broadband should Time Warner Cable revisit an Internet Overcharging experiment attempted in 2009 which would have drastically limited broadband usage for its customers.

The bill’s passage with a calling of the “yeas and nays” made it impossible for members of the public to know who voted for and who voted against the compromise measure.  But an accidentally open microphone allowed many to get a real sense of how much one member of the Committee disliked consumers fighting back against telecom special interests pulling all the strings.

Senator Daniel Clodfelter (D-Mecklenburg) nearly raised a toast to his fellow members during the session praising them for doing the “grown-up” thing and agreeing to his manufactured compromise that phone and cable companies are celebrating as a victory today:

“This is not, I would say to you, a peace treaty.  It is an armistice. And what the bill does is provide an armistice so that the shooting war stops and a conversation will occur among those people who’ve been meeting with each other in those conference rooms for the past week,” Clodfelter said. “Thank you all, because you did the grown-up thing, and I really appreciate it.”

Clodfelter’s seemingly-sincere comments might have gone off better had the audience not heard Clodfelter’s private remarks to Senator Dan Blue (D-Wake) a few minutes earlier, inadvertently captured by a live microphone:

“The — what I call the crazies that circulate around this issue are not gonna like this,” Clodfelter told Blue.

Observed WUNC reporter Laura Leslie: “I’m sure Clodfelter isn’t the first lawmaker to think so, but most of them cover the microphone before they say it out loud.”

The bill’s author, Senator David Hoyle (D-Gaston), who spent the day mangling the words “fiber optic,” condescendingly lectured his colleagues and communities about their opposition to his bill.  Mistakenly called a Republican in the pages of the Greensboro News-Record, Hoyle complained cities don’t belong in the broadband business.  He doesn’t want government competing with private industry, which might explain why the newspaper switched his party affiliation.  But considering the amount of telecom special interest money that has flowed into the retiring senator’s campaign coffers, there may be much more to this than a philosophical debate.

Hoyle has gone all out in the North Carolina media on behalf of his telecom industry benefactors.

Money makes legislators do strange things... like disrespect their constituents with obvious industry-backed protectionist legislation

Delivering a series of eyebrow-raising one-liners, Hoyle is hardly ingratiating himself with cities and towns across the state.  He inferred most city and town leaders were naive, telling ENC Today he expects all of the attention on municipal broadband will only cause more municipalities to get into the business.

“There are a whole lot of cities that can’t wait to jump on the bandwagon — monkey see, monkey do,” Hoyle said, using language that some have since called inappropriate.

Hoyle argues these systems are destined to fail.  Once again he called out the cities of Davidson and Mooresville completing required upgrades to an old Adelphia cable system the community acquired nearly three years ago.

“There’s a couple of cities in this business that they should sure wish the heck they were not into, and that’s Davidson and Mooresville,” Hoyle said.

That came as news to MI-Connection, the municipal provider providing service to the two communities, whose revenues for the quarter that ended March 31st were up 9.4 percent from a year earlier.

Davidson resident and MI-Connection board member John Venzon told the Davidson News he’s worried that the legislation could “unlevel the playing field” for MI-Connection and make it harder to compete.

MI-Connection General Manager Alan Hall also told the News the entire board has concerns about these kinds of bills.

Hoyle and his telecommunications industry friends may wish the communities weren’t in the business, but MI-Connection believes otherwise.

As Stop the Cap! has reported on several occasions, MI-Connection’s challenges have hardly been unique to Davidson and Mooresville.  Time Warner Cable ditched over 125 Adelphia systems it purchased, and the company is still coping with legacy equipment left in place at the former Adelphia system it now runs in Calabasas, California.  The cost of upgrades for the old Adelphia systems kept by both Time Warner Cable and Comcast ran well into the millions.

Another messy misstep for the state senator has been what one could charitably call “stretching the truth.”

Mayor Susan Kluttz, representing the people of Salisbury, N.C., was called a "gentleman" and "he" by an out of touch David Hoyle

“I got a call from a gentleman yesterday, Mayor Kluttz from Salisbury, and I mean he laid me out.  He called me dumb.  I had no idea,” Hoyle complained to other members on the Senate Finance Committee.

One person who was not amused by that story was Salisbury Mayor Susan Kluttz, who was seated directly in front of Hoyle.  She had no idea what Hoyle was talking about.  I later spoke with a representative of the city who told me no one from their staff called Hoyle.  With a mistake like that, maybe that phantom caller was onto something after all.  Listening to Hoyle, the self-appointed expert on municipal fiber projects, refer to them as “fiber opticals,” “fiber opt,” “fiber install and do all the things they’re going to do,” and “totally fiber project any city,” did not inspire confidence.

At the heart of Hoyle’s opposition is the idea that local municipalities should not be involved in the private sector… ever.  In his mind, broadband service is a luxury, and the private marketplace is best equipped to decide who gets it, and who does not.  Hoyle brings no answers to the table for communities bypassed by the duopoly of providers who are increasingly focusing their time, attention, and resources on larger cities where average revenue per customer can be higher than in rural areas.  If the local cable or phone company doesn’t provide the service, that’s just too bad.

Mirroring the attitude of the state’s telecommunications companies, Hoyle believes municipalities or even private providers that seek broadband stimulus money represent unfair competition, even in cases where existing providers refuse to offer service.

That is the ultimate dilemma.  If you believe broadband is not becoming an essential component of most American lives and is simply a nice thing to have, it’s not insane to agree with Hoyle.  But hundreds of thousands of North Carolina residents don’t believe that.  Parents of children in broadband-disadvantaged schools quickly learn their kids fall behind their peers in larger, wired communities.  Businesses will not locate in areas where inadequate broadband exists.  Digital economy entrepreneurs cannot start new businesses without good broadband either.  Even senior citizens, who are among the most resistant to broadband adoption, often complain about the inherent inequity of being forced to rely on dial-up service.

Senator Purcell

Some of the same arguments about disparity of access went on during the early 1900s in rural North Carolina, deprived of electricity and telephone service by private providers.  Once President Roosevelt effectively declared these types of services as essential utilities, where private providers didn’t go, municipalities and co-ops did.  In North Carolina, keeping the brakes on an expansion-minded state government came even before Roosevelt was president, with the passage of the 1929 Umstead Act — a law that prohibits the state from directly competing with private enterprise.

The Umstead Act has been seized on by the telecommunications industry, arguing municipal broadband violates the spirit of the law, even though it never applied to local municipalities.  Besides, the law has been amended since 1929 because, free market theory notwithstanding, free enterprise doesn’t have every answer and cannot meet every need.  Just ask BP.

Only Ayn Rand could appreciate that Hoyle and his allies support an entrenched duopoly that embraces its profitable urban customers while they fight for restraining orders like S1209, blocking efforts by others to deliver service the duopoly won’t provide.  We call that corporate welfare and protectionism.  But some in the state legislature can’t see that because of the blizzard of cash being dropped in front of them by that duopoly, just to leave things entirely in their hands.

Hoyle noted nobody, including himself, liked the final bill.  In Hoyle’s eyes, that adds up to a “good bill.”

Other members on the Committee had different views to share.

Senator William Purcell (D-Anson, Richmond, Scotland, Stanly) is the former mayor of Laurinburg — the same city from the 2005 court victory in BellSouth/AT&T v. Laurinburg, which paved the way for municipal broadband in the state.  He asked pointedly, “What assurances do we have that the private companies are going to provide [service] to smaller areas?”

Senator Queen

Hoyle answered by pulling out his talking points generously provided by the cable and phone companies and delivered a non-answer, finally stating, “we are not going to get broadband to everyone in the state.”  Perhaps Hoyle is foreshadowing his next job after he retires from the Senate — working for the same telecom companies he seems to represent now.

Senator Joe Sam Queen (D-Avery, Haywood, Madison, McDowell, Mitchell, Yancey) delivered the most passionate presentation of the day on behalf of his constituents, among the least likely to have broadband service available to them.  As Hoyle disrespectfully rolled his eyes and winked at the cable industry lobbyists in the audience, Queen blasted the industry’s record of performance in his district, which covers the High Country — the rural Appalachian mountain counties in the western half of the state.

“We don’t have last mile access in the mountains,” Queen told the Committee.  “[My constituents are] frustrated that it’s not getting done by the cable companies, the network companies, whoever’s doing it. They’re just cherry-picking and leaving off so many of our citizens, and that’s just unacceptable.”

Queen noted the private industry that refuses to serve many of his areas also refuses to allow others to provide that service.

“The private sector is not getting it done fast enough,” he added. “We have electricity to everybody, we have water to everybody. We should have Internet to everybody in the 21st century.  In my counties, we are still struggling to make that happen.  Our children don’t have the virtual broadband educational opportunities that they have in the urban areas. Our business owners don’t have the access to markets that our urban citizens have.”

Senator McKissick

One senator had a question about the year-long moratorium.  Senator Floyd B. McKissick, Jr. (D-Durham) asked if no action was taken by the end of the 2011 session, would the moratorium expire automatically?  Although provisions in S1209 do provide for a firm sunset date, Paul Myer from the North Carolina League of Municipalities told me nothing precludes the Senate from quietly extending the moratorium, or removing the sunset provision altogether, effectively making the ban permanent.

Meanwhile, communities contemplating such projects would have to give 15-days written notice to every private provider potentially impacted, providing more than two weeks for a fear-based opposition propaganda campaign.  And we know where they’ll get the money to pay for it, too.

The only good news out of all this:

  • Cities already providing or constructing broadband projects may continue;
  • A Google Fiber city in North Carolina gets a pass;
  • Federal broadband grant recipients may proceed, although many of those grants are going to existing providers anyway;
  • The bill is headed next to the House, where we have a new opportunity to derail it.

Recognizing the spirit of this entire proceeding which left consumer interests out in the cold, no public comments were heard and no recorded vote was taken.

Needless to say, the revised S1209 is only slightly less loathsome than the original, and must be opposed.  But more on that coming shortly.

We couldn’t close this piece without recognizing that when all the talk was over and vote was taken, it was rest and relaxation time for selected senators, brought to you by Electricities who picked up the tab for a fabulous spread of food and drink.  WUNC reporter Laura Leslie wrote about what she called an Irony Supplement.

The S1209 compromise also won the grudging support of Senator David “Business-Friendly” Hoyle (D-Gaston).

After telling Senate Finance that “Somebody, maybe a lot of bodies, needs to stand up for our free enterprise system,” Hoyle went on to knock the state’s biggest public utility co-op:  “If anybody thinks that the experiment with Electricities was a resounding success, I’d like for you to raise your hand.”

No one did.

But after session today, quite a few of the Hons found their way across the street for free food and drinks provided by – wait for it – Electricities.

As one House Republican told me tonight, “If you can’t bash them and then eat their hors d’oeurves, you’re in the wrong business.”

No, sir, I’m not.  But I’m thinking you might be.

Senate Finance Committee deliberations on a revised S1209, a bill to establish a one year moratorium on municipal broadband projects. (June 2, 2010) (34 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

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