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Astroturf and Industry-Backed, Dollar-a-Holler Friends Support Telco’s USF Reform Plan

So who is for the ABC Plan?  Primarily phone companies, their business partners, and dollar-a-holler astroturf friends:

American Consumer InstituteSourceWatch called them a telecom industry-backed astroturf group.  Karl Bode from Broadband Reports discovered “the institute’s website is registered to ‘Stephen Pociask, a telecom consultant and former chief economist for Bell Atlantic [today Verizon].”  The group, claiming to focus “on economic policy issues that affect society as a whole,” spends an inordinate amount of its time on telecommunications hot button issues, especially AT&T and Verizon’s favorites: cable franchise reform and opposition to Net Neutrality.

Anna Marie Kovacs:  Determining what is good for Wall Street is her business, as founder and President of Regulatory Source Associates, LLC. RSA provides investment professionals with analysis of federal and state regulation of the telecom and cable industries.

Dollar-a-holler support?

Consumer Awareness Project: A relatively new entrant, CAP is AT&T’s new darling — a vocal advocate for AT&T’s merger with T-Mobile.  But further digging revealed more: the “group” is actually a project of Washington, D.C. lobbying firm Consumer Policy Solutions, which includes legislative and regulatory advocacy work and implementation of grassroots mobilization.

That is the very definition of interest group-“astroturf.”

Randolph May from the Free State Foundation supports "state's rights," but many of them want no part of a plan his group supports.

Free State Foundation: A misnamed conservative, “states rights” group.  Leader Randolph May loves the ABC Plan, despite the fact several individual states are asking the FCC not to impose it on them.

Hispanic Technology & Telecommunications Partnership:  Whatever Verizon and AT&T want, HTTP is also for.  The group was embroiled in controversy over its unflinching opposition to Net Neutrality and love for the merger of AT&T and T-Mobile.  Its member groups, including MANA and LULAC, are frequent participants in AT&T’s dollar-a-holler lobbying endeavors.

Robert J. Shapiro: Wrote an article for Huffington Post calling the ABC Plan worth consideration.  Also worth mentioning is the fact he is now chairman of what he calls an “economic advisory firm,” which the rest of the world calls a run-of-the-mill D.C. lobbyist firm — Sonecon.  It comes as no surprise AT&T is a client.  In his spare time, Shapiro also writes reports advocating Internet Overcharging consumers for their broadband service.

Indiana Exchange Carrier Association: A lobbying group representing rural Indiana telephone companies, primarily owned by TDS Telecom.  It’s hardly a surprise the companies most likely to benefit from the ABC Plan would be on board with their support.

Indiana Telecommunications Association: A group of 40 telephone companies serving the state of Indiana.  For the aforementioned reasons, it’s no surprise ITA supports the ABC Plan.

Information Technology and Innovation Foundation:  Reuters notes this group received financial support from telecommunications companies, so lining up behind a plan those companies favor comes as little surprise.  ITIF also believes usage caps can deter piracy, so they’re willing to extend themselves way out in order to sell the telecom industry’s agenda.

Internet Innovation Alliance:  Another group backed by AT&T, IIA also funds Nemertes Research, the group that regularly predicts Internet brownouts and data tsunamis, which also hands out awards to… AT&T and Verizon.

The Indiana Exchange Carrier Assn. represents the phone companies that will directly benefit from the adoption of the ABC Plan.

Bret Swanson:  He penned a brief note of support on his personal blog.  When not writing that, Swanson’s past work included time at the Discovery Institute, a “research group” that delivers paid, “credentialed” reports to telecommunications company clients who waive them before Congress to support their positions.  Swanson is a “Visiting Fellow” at Arts+Labs/Digital Society, which counted as its “partners” AT&T and Verizon.

Minority Media & Telecom Council: Tries to go out of its way to deny being affiliated or “on the take” of telecom companies, but did have to admit in a blog posting it takes money from big telecom companies for “conference sponsorships.”  Some group members appear frequently at industry panel discussions, and mostly advocate AT&T’s various positions, including strong opposition to reclassify broadband as a utility service.

MMTC convened a Broadband and Social Justice Summit earlier this year that featured a range of speakers bashing Net Neutrality, and the group’s biggest highlighted media advisory on its website as of this date is its support for the merger of AT&T and T-Mobile.  Yet group president David Honig claims he can’t understand why some consumer groups would suspect groups like his of engaging in dollar-a-holler advocacy, telling The Hill, “We’ve seen no examples of reputable organizations that do things because of financial contributions. It’s wrong to suggest such things.”

Mobile Future: Sponsored by AT&T, Mobile Future curiously also includes some of AT&T’s best friends, including the Asian Business Association, LULAC, MANA, the National Black Chamber of Commerce, and the United States Hispanic Chamber of Commerce.

Montana Independent Telecommunications Systems: Primarily a group for Montana’s independent telephone companies, who will benefit enormously from the ABC Plan.

What major corporate entity does not belong to this enormous advocacy group?

The National Grange:  A group with a long history advocating for the interests of telephone companies.  Over the years, the National Grange has thrown its view in on Verizon vs. the RIAA, a request for Congress to support industry friendly legislation, a merger between Verizon and NorthPoint Communications, and USF issues.

The Keep USF Fair Coalition was formed in April 2004. Current members include Alliance for Public Technology, Alliance For Retired Americans, American Association Of People With Disabilities, American Corn Growers Association, American Council of the Blind, California Alliance of Retired Americans, Consumer Action, Deafness Research Foundation, Gray Panthers, Latino Issues Forum, League Of United Latin American Citizens, Maryland Consumer Rights Coalition, National Association Of The Deaf, National Consumers League, National Grange, National Hispanic Council on Aging, National Native American Chamber of Commerce, The Seniors Coalition, Utility Consumer Action Network, Virginia Citizen’s Consumer Council and World Institute On Disability. DSL Prime helps explain the membership roster.

Taxpayers Protection Alliance:  One of the tea party groups, TPA opposes higher USF fees on consumers.  The ABC Plan website had to tread carefully linking to this single article favorable to their position.  Somehow, we think it’s unlikely the group will link to the TPA’s louder voice demanding an end to broadband stimulus funding many ABC Plan backers crave.

TechAmerica: Guess who is a member?  AT&T, of course.  So is Verizon.  And CenturyLink.  TechAmerica call themselves “the industry’s largest advocacy organization and is dedicated to helping members’ top and bottom lines.”  (Consumers not included.)

Tennessee Telecommunications Association: TTA’s independent phone company members stand to gain plenty if the ABC Plan is enacted, so they are happy to lend their support.

Rep. Terry's two biggest contributors are CenturyLink and Qwest.

Representative Greg Walden (R-Oregon):  His top five contributors are all telecommunications companies, including CenturyLink, Pine Telephone, and Qwest.  He also gets money from AT&T and Verizon.  It’s no surprise he’s a supporter: “We are encouraged by the growing consensus among stakeholders as developed in the ‘America’s Broadband Connectivity Plan’ filed with the Federal Communications Commission today, and we hope that consensus will continue to grow.”

Representative Lee Terry (R-Nebraska): He co-signed Rep. Walden’s statement.  Rep. Terry’s two biggest contributors are Qwest and CenturyLink.  Now that CenturyLink owns Qwest, it’s two-campaign-contributions-in-one.  And yes, he gets a check from AT&T, too.

Representative Steve Scalise (R-Louisiana): “Today’s filing of the ‘America’s Broadband Connectivity Plan’ is welcomed input on the intercarrier compensation and Universal Service Fund reform front,” Scalise said.  Now Scalise is ready to welcome this year’s campaign contribution from AT&T, which he has not yet reportedly received.  In 2008, Scalise received $13,250.  In 2010, $10,000.  This cycle, so far he has only been able to count on Verizon, which threw $2,500 his way.  Scalise voted earlier this year to overturn the FCC’s authority to enact Net Neutrality.

USTelecom Association: The only news here would be if USTA opposed the ABC Plan.  Included on USTA’s board of directors are company officials from: Frontier Communications, AT&T, CenturyLink/Qwest, Windstream, FairPoint Communications, and Verizon.  That’s everyone.

Wisconsin State Telecommunications Association:  Their active members, including Frontier Communications, are all telephone companies inside Wisconsin that will directly benefit if the ABC Plan is enacted.

New Documentary Reminds Us Why Letting AT&T Grow Bigger is a Bad Idea

Phillip Dampier August 30, 2011 AT&T, Editorial & Site News, History, Net Neutrality, Public Policy & Gov't, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on New Documentary Reminds Us Why Letting AT&T Grow Bigger is a Bad Idea

On September 13, most PBS stations will premiere a new documentary, “Bill McGowan, Long Distance Warrior” exploring the many trials and tribulations of MCI Corporation, the long distance and e-mail provider that was instrumental in breaking up Ma Bell’s monopoly in telephone service.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/Long Distance Warrior.flv[/flv]

A preview of PBS’ Long Distance Warrior, which premieres on most PBS stations Sept. 13  (3 minutes)

For those under 30, “MCI” may not mean much.  The company that helped pioneer competitive long distance calling was absorbed into the Worldcom empire in 1997, where it continued to provide service until a major corporate accounting scandal brought Worldcom down in 2002.  Most of what was left was eventually sold to Verizon Communications in 2005.

Remarkably, Microwave Communications, Inc. (MCI) was founded all the way back in 1963, but not as a provider of telephone services.  That MCI sought to build a network of microwave relay stations between Chicago and St. Louis to provide uninterrupted two-way radio service for some of the nation’s largest trucking and shipping companies.

The Bell System

By the late 1960s, William G. McGowan, an investor and venture capitalist from New York won a seat on MCI’s board of directors and part ownership of a newly-envisioned version of MCI — one that would provide businesses with a range of telecommunications products, including long distance telephone connections.  With many American corporations maintaining branch and regional offices, connecting them together was a potentially very lucrative business, especially if MCI could deliver the service at prices cheaper than what the monopoly Bell System was charging.

With their microwave relay network, now expanding across the country, MCI could distribute long distance phone calls cheaply and efficiently, if they could find a way to connect that network to Bell’s local phone system.  After all, it does little good to offer long distance service if you cannot connect calls to the businesses’ existing telephone equipment.

That’s where AT&T and its Bell Operating Companies objected.  For them, only calls originating on and delivered over their own network should be allowed.  MCI, as an interloper, was seeking to use the network AT&T built and paid for.  It’s an argument that has echoed more than 30 years later, when AT&T’s then-CEO Ed Whitacre objected to outside Internet content providers “using AT&T’s pipes for free.”

[flv]http://www.phillipdampier.com/video/MCI First 20 Years.mp4[/flv]

On the occasion of MCI’s 20th anniversary, the company produced this retrospective exploring the difficult times competing with AT&T and the Bell System.  (9 minutes)

MCI's best argument: AT&T's long distance bills

McGowan confronted arguments from AT&T executives who warned that competitive long distance would destroy the business model of America’s Bell System, which provided affordable local phone service to all 50 states, in part subsidized by long distance telephone rates, mostly paid by its commercial customers.  Tamper with that, they warned, and local phone bills would be forced to soar to make up the difference.

MCI called that argument a scare tactic, and suggested instead that AT&T’s monopoly had grown inefficient, bloated, expensive, and resistant to innovation and change.  MCI could deliver a substantially less expensive service and would force AT&T to increase its own efficiency to compete.  AT&T wasn’t interested in that argument and sued, repeatedly, to keep MCI out of its business.

By 1984, federal courts declared AT&T a monopoly worthy of a break-up, and opened the door to MCI’s long distance network.  By that time, MCI was already thinking about evolving itself beyond a business long distance provider, whose network was largely idle after business hours.  Because most Americans were accustomed to making long distance calls at night when rates were substantially lower, MCI developed new residential long distance service plans that encouraged customers to use that idle network at night and on weekends.

[flv width=”640″ height=”447″]http://www.phillipdampier.com/video/crying_mother.f4v[/flv]

One of MCI’s most memorable ads features a sobbing mother who reached out and touched her son over long distance a little too much.  (1 minute)

Thus began more than a decade of heavy advertising and competition for the long distance telephone market.  With equal access rules in place, consumers could choose their own long distance phone company and shop for the one with the lowest rates.  Competitors like Sprint, WilTel, LDDS, RCI, LCI, and yes, even AT&T all pitched their own calling plans.

MCI also pioneered MCI Mail, one of the first commercial electronic mail systems.  The original concept had businesses typing letters on a computer terminal, printed on standard paper at an MCI office closest to the destination, and then mailed in an envelope through the U.S. Post Office.  This poor-man’s version of a telex or telegram worked for businesses that wanted overnight delivery, but not at the prices charged by shippers like Federal Express.  In larger cities, MCI Mail could offer businesses delivery of their electronic communications within four hours, something closer to a traditional telegram of days gone-by.

MCI Mail’s hard copy deliveries wouldn’t last long, of course.  As the 1980s progressed, the fax machine and the more familiar all-electronic e-mail we think of today became firmly established.  As MCI Mail became less relevant, the company innovated into offering low priced telex services, mass-faxing, and data backhaul services to provide connectivity for online networks.

[flv width=”504″ height=”400″]http://www.phillipdampier.com/video/WIBW MCI Mail 1984.flv[/flv]

WIBW explores a new concept in communications — something called ‘electronic mail,’ a service that bewildered consumers in the early 1980s.  This report from 1984.  (2 minutes)

Bill McGowan: Would not approve of AT&T's plans to restore the glory days of the past.

AT&T, in contrast, was still getting over the loss of its local Bell Operating Companies — the regional phone companies most Americans did business with, and the loss of revenue earned from renting telephone equipment.  For years, AT&T long distance was branded as a quality leader, not a price leader.  It maintained its enormous market share partly through consumer indifference — customers who did not initially choose a new long distance carrier remained with AT&T, the default choice.

It took only about a decade after the Bell break-up for telecom industry lobbyists to begin advocating for enough deregulation to allow many of those former Baby Bells to re-combine through mergers and acquisitions.  The result is today’s AT&T, formed from its long distance unit, BellSouth, Illinois Bell, Indiana Bell, Michigan Bell, Nevada Bell, Ohio Bell, Pacific Bell, Southwestern Bell, Wisconsin Bell, and Southern New England Telephone.  Its largest competitor is Verizon Communications, which itself resulted from a combination of Bell Atlantic, NYNEX, GTE, and what was left of MCI after Worldcom was through with it.

McGowan’s fight was a personally costly one.  A workaholic, McGowan routinely put in 15 hour work days and drank up to 20 cups of coffee daily.  His heart finally had enough and McGowan succumbed to a heart attack in 1992 at age 64.  But he leaves a legacy and two decades of fighting to break up AT&T’s monopoly, which he always believed was bad for consumers and business (unless you were AT&T, of course).  That’s an important message as AT&T strengthens its resolve to acquire one of its significant competitors in the profitable wireless market — T-Mobile.  McGowan would have never approved.

[flv]http://www.phillipdampier.com/video/KCSM San Mateo Electronic Mail 6-18-87.mp4[/flv]

“The Computer Chronicles,” a production of KCSM-TV, spent a half hour in June 1987 showing off electronic e-mail service from MCI and how consumers and businesses using something called a “modem” could connect their home computers with online databases and services to exchange information and communications back and forth.  And for those business travelers on the road, away from their office computers, Speech Plus offered a product that could still keep you “connected,” by reading your e-mail to you over the phone.  In 1987, outside of commercial pay networks like CompuServe, Delphi, PeopleLink and QuantumLink, most Americans with modems used them to connect to typically-free hobbyist-run computer bulletin board systems.  Widespread access to “the Internet” would take another 5-6 years.  (29 minutes)

AT&T Objects: Academics Giving ‘Biased Opinions’ Interferes With Its Own ‘Biased Opinions’ on Merger

The state of California is in receipt of a letter from AT&T objecting to a state workshop on the AT&T/T-Mobile merger that included 70 minutes for a panel of academic experts to share their views of one of the state’s largest wireless mergers in years.

J. David Tate, AT&T’s general attorney and associate general counsel, sent the letter in response to news California regulators would open the workshop to a presentation from academics about the impact the merger would have on California consumers, ranging from competition to roaming access to spectrum issues.

Tate called that inappropriate and asked the California Public Utilities Commission to ban their testimony:

“AT&T is raising objections to the panel because having a panel of ‘academic experts’ present at this workshop will pose significant risk of tainting the record with potentially uninformed and biased opinions. These opinions do not constitute the facts upon which the transaction should be reviewed.

“[…] Allowing academicians with unknown expertise in the wireless telecom industry the opportunity to place on the record their personal opinions regarding AT&T’s planned purchase of T-Mobile USA is procedurally improper, unfairly prejudicial to the parties, and contrary to due process principles.”

Instead of allowing those outside of the industry to present their views on the merger, AT&T suggested the best solution would be to allot the 70 minutes originally given to the academics to AT&T (and the three remaining panels AT&T does not object to) instead.

Wisconsin Republicans’ War on Everything: The Battle for Broadband Sanity Isn’t Over

In Wisconsin, one protest after another as state legislators deliver results for corporate interests, often at the expense of the public interest. Broadband was the latest close call.

Imagine if you drove down to your local credit union this morning to find the doors padlocked and an ominous sign taped across the front door: “Closed for Anti-Competitive Business Practices.”  Then you return your books on loan from the public library, but find the same padlock and sign on that building, too.  Scratching your head, you then drive home vowing to get to the bottom of this only to be greeted by the mailman, who hands you a letter from your daughter’s school announcing steep and immediate tuition increases required to cover surprising new expenses.

As you try and understand what exactly has happened, it all becomes clear when you switch on the evening news — the Republicans in Wisconsin have launched their version of a “revolution,” — one that originally promised to “restore fiscal sanity,” but instead looks more and more like a statewide pilot project run by the Ayn Rand Institute, with the financial backing of AT&T.

In the fight for better broadband, normally the bad actors can be easily identified and called out from both political parties.  Democrats and Republicans turn campaign contributions and promises of power and influence into favorable, often custom-dictated legislative proposals that come straight from the companies that will benefit the most.  But the last six months of Republican rule in Wisconsin cannot be compared with anything else that has come before.  It’s a wholesale sellout to AT&T, and even statewide protests and media coverage on a massive scale appears to have only delivered a temporary reprieve, with strings attached.  What’s worse, even after the massive call-out against the telecom overreach, some of the proponents of broadband slash and burn politics are completely unrepentant, vowing to try again, perhaps when the public isn’t paying attention.

While some educational institutions believe any deal is better than no deal with the state’s ideologues, they will do themselves no favor if they drop the issue after the “compromise” is reached.  This all-out “war on broadband” cannot be appeased while AT&T’s true believers remain in office.

Let’s catch up.

In the last 48 hours, an ongoing series of “discussions” about the ultimate fate of WiscNet, Wisconsin’s institutional broadband cooperative network, have brought some assurances the network will not have to close its doors, at least not yet.  Yesterday, AT&T’s meddling to make changes to the “compromise” was on display, and one should never underestimate the cleverness of this company at finding ways to tie the hands of its targets with innocuous-looking legislative language.  Those stealthy last-minute additions can deliver a powerful sting only realized later, after the bill becomes law.

Angry phone calls pounded legislators in Madison, as did many newspaper editorials, TV news coverage (which we will review below), and a lobbying counterattack by librarians and educators all working to stop AT&T from winning an all out victory.  But make no mistake, this battle is by no means over.

For at least two years, WiscNet appears to have won the basic right to continue to exist, but only under a form of big government supervision.

The provision to ban award recipients from accepting broadband stimulus money from the federal government has been dropped.  Telecom industry lobbyists fought hard to get Wisconsin to virtually return federal stimulus money awarded to public broadband projects by trying to prohibit winners from accepting the checks.  Tens of millions already allocated to the University of Wisconsin would have had to be forfeit.  Instead, the changes worked out this week allow the university to use those funds to build and expand WiscNet to more state schools, libraries and public buildings.

WiscNet Coverage

Few legislators would openly admit trying to utterly destroy WiscNet, instead preferring “death by a thousand cuts,” writing rules and regulations that threaten the viability of the network’s ability to conduct operations.  While most of the onerous provisions were turned back, including those that would ban participation in Internet2 and limit WiscNet’s expansion, the compromise forces the network to face additional auditing and scrutiny by committed opponents to public broadband.

WiscNet put on a brave face, releasing the following statement:

We welcome an objective review of the relationship between the University of Wisconsin and WiscNet, a nonprofit cooperative.  The amendment allows the University of Wisconsin to continue as full members of WiscNet for the next two years, while the review helps everyone understand these issues better.  We look forward to a healthy dialogue with legislators, telecommunications providers, community partners, and others.  We are confident that those open lines of communication will be fruitful.

Don’t count on it.  Having followed these legislative battles for the past several years, one thing is certain: AT&T and their industry friends like Access Wisconsin will be back to try again and again and again.  As long as the current legislature includes members who are not only amenable to AT&T’s world views, but openly espouse them (and occasionally exceed them), WiscNet and public broadband in general is hardly safe.

Let’s remember who and what we are dealing with here:

The War on Broadband: At the core of the Republicans’ argument against public or institutional broadband is that it competes unfairly (somehow) against private corporate providers.  That argument ignores the fact WiscNet, among many other public and institutional networks, is essentially a cooperative, and one that existed long before phone and cable companies got into the Internet Service Provider business themselves.  Members pool resources to sustain a service that first and foremost delivers benefits to its users, not to external banks or investors.  Many institutional networks like WiscNet might even be compared to credit unions, delivering service to a pre-determined constituency that also happens to have a voice in how that network is run.

There are big banks and their supporters who detest credit unions because they represent “unfair competition” for them, because they can afford to deliver more service for less money.  It’s a familiar argument when you listen to some Republican senators in Wisconsin argue that the very existence of WiscNet represents anti-competitive behavior, harming fellow networks like Badgernet (another state institutional network).  It should not be a surprise to our readers to learn Badgernet is a network largely serviced by AT&T, and charges radically higher prices for its service because of what the phone company charges them for access.

The conservative movement in Wisconsin has been largely content dismissing broadband support in Wisconsin as a luxury perk, despite the fact the state scores 43rd out of the 50 best-wired states.  In addition to the purposeful distortions coming from those opposing networks like WiscNet, some have been reduced to arguing academia simply wants these networks for fast access to porn and copyrighted content.

Can Wisconsin afford their asking price?

“Help” from Dollar-A-Holler Mouthpieces like Access Wisconsin: This group, funded by the commercial telecommunications companies it represents at the expense of ordinary consumers, claims it is a helper in delivering an improved broadband experience in Wisconsin.  So helpful, in fact, it joined with AT&T and the state Republicans in calling for federal broadband stimulus money to be returned and not spent in the state for improved service.  While Access Wisconsin attacks government subsidies it doesn’t like, its member companies run to the bank with over $90 million annually in federally-mandated Universal Service payments.  The group is even upset the University of Wisconsin didn’t use state-based providers and contractors to build their expanded fiber network.  That comes as little surprise considering the University reached out to several of Access Wisconsin’s member companies (and AT&T) and found none interested in helping out.

The War on Libraries, Schools, and Taxpayers: The proposed cuts in library spending are deemed so dire by many patrons, they have begun to suspect the Republican majority would rather see people buy books at Wal-Mart than check them out for free at the town library.  On top of the budget cuts, broadband costs for schools and libraries would explode if these institutions were forced to buy access from Badgernet.

The party of “fiscal sanity” supported killing off cost-effective, money-saving broadband from WiscNet to fulfill a rigid ideological framework that would ultimately deliver less service for a lot more money.

Let’s compare prices for a moment.  Badgernet, which gets wholesale access from AT&T, charges prices that are far higher than WiscNet charges.  Badgernet itself is not the problem, its wholesale supplier is.  To defray the costs, the state of Wisconsin subsidizes Badgernet to the tune of nearly $17 million annually, to keep prices affordable for libraries and schools.  That $17 million effectively goes straight into AT&T’s bank account.  But that subsidy only gets you so far.  Badgernet charges $6,000 a month for 100Mbps service because that is the price required to recover costs charged by AT&T.  Many institutions rapidly outgrow this level of service and can upgrade to 1,000Mbps service, so long as they have a spare $49,500 a month laying around for broadband.

In contrast, clients on WiscNet can purchase 1,000Mbps service for about $10,000 a year.  Is that price disparity worth raising a ruckus over?  Apparently so.

The AT&T Dilemma: While AT&T did not win everything it wanted this year, prior evidence shows the company will be back to try again, just as it did with its statewide video franchising legislation that was supposed to deliver a competitive market for cable in the state.  In fact, it delivered higher prices instead.  Negotiating defensively with companies like this assures a war of attrition, as public providers find themselves compromising away core features of their network to protect whatever is left.

A much better idea for Wisconsin broadband is to launch an all-out counteroffensive.  Instead of stalemate compromises that constrain public networks, let’s demand they expand.  If there can be a co-op for dairy products and a credit union for banking, there certainly can be a community broadband cooperative that delivers service not just to institutions, but to members of the public and any independent provider who wants access — publicly owned for the public good.  That may not be WiscNet, designed under an institutional model, but it certainly need not be yet another overpriced offering from AT&T.

Before that can happen, Wisconsin residents need a cleanup — an upgrade — of the caliber of elected officials working on their behalf.  Thus far, a good percentage of Wisconsin’s current majority party seems far more interested in turning the state into a corporate lab experiment of their version of the free market done their way — for their benefit, at your expense.  The proof was at hand this week when the state nearly adopted a “cost saving” measure for broadband that would have cost Wisconsin taxpayers considerably more, all for the benefit of a handful of telecom companies.  Let’s help those legislators find a new day job sooner rather than later.

After that, WiscNet needs a legislative advocate of its own to introduce measures that undo the damage and then build on WiscNet’s success by expanding its reach and keeping it affordable.

Timeline: Tracking Wisconsin’s Awakening of the Wisconsin Republicans’ Broadband Agenda

Too often, broadband policy debates are too arcane for the general public to grasp.  Most people in the state probably never heard of WiscNet, and don’t realize when they might be using it.  But what they do understand is pay-for-play politics that hits them in the pocketbook.  As state residents learned the Republican majority wanted to ban the provider that delivers the most service for the least amount of money in favor of AT&T, they got involved and helped temporarily defeat the plan.

[flv width=”512″ height=”298″]http://www.phillipdampier.com/video/WISC Madison UW Schools Voice Concerns About Budget Measure Affecting Internet 6-7-11.m4v[/flv]

June 7th: WISC-TV in Madison explains to viewers the plan to kill WiscNet would carry a pricetag of at least $70,000 in Madison alone, with potentially millions more at stake, all for the industry’s claim of a “level playing field.” (2 minutes)

[flv]http://www.phillipdampier.com/video/WAOW Wausau Library Internet 6-08-11.mp4[/flv]

June 8th: WAOW-TV in Wausau discovers what the war on WiscNet would do to Internet access in area libraries.  (2 minutes)

[flv]http://www.phillipdampier.com/video/WFRV Green Bay WiscNet Deleted 6-12-11.mp4[/flv]

June 12th: WFRV-TV in Green Bay tells its viewers the cost to procure Internet access in area universities could increase from $70,000 to more than $400,000, all to benefit private providers who want to compete at much higher price points.  (1 minute)

[flv]http://www.phillipdampier.com/video/WXOW LaCrosse Pulling the Plug on WiscNet 6-13-11.mp4[/flv]

June 13th: LaCrosse residents are told they’ll pay more for less if large telecommunications companies get their wish to knock out inexpensive broadband through WiscNet.  WXOW-TV lead the 5pm evening news with news the bill was a last minute addition that received full support from state Republicans.  (2 minutes)

[flv]http://www.phillipdampier.com/video/WEAU Eau Claire WiscNet 6-14-11.mp4[/flv]

June 14th: WEAU-TV in Eau Claire reports Sen. Terry Moulton (R-23rd District) got an earful from area hospitals about the terrible impact the shutdown of WiscNet would have there, which concerned him.  The station also reports on the threat to broadband funding in rural Chippewa Valley.  (Loud Volume Warning) (2 minutes)

[flv]http://www.phillipdampier.com/video/WQOW Eau Claire WiscNet Targeted 6-14-11.mp4[/flv]

June 14th: Eau Claire station WQOW-TV reports university students and academia generally faced the end of unlimited bandwidth if the state proposal to do away with WiscNet were to pass into law.  A telecom industry lobbyist claims the bill would allow private providers to deliver comparable service to institutions, but one local institution found an amazing price disparity: $2,500/yr with WiscNet or $1,000,000/yr with a private provider.  (2 minutes)

[flv]http://www.phillipdampier.com/video/WXOW La Crosse New Amendments 6-15-11.mp4[/flv]

June 15th: Newly elected Rep. Steve Doyle introduces amendments to turn back Republican proposals in the legislature that would harm statewide broadband networks, reports WXOW-TV in La Crosse.  (2 minutes)

[flv]http://www.phillipdampier.com/video/WKOW Madison WiscNet will stay the same in budget 6-16-11.mp4[/flv]

June 16th: WKOW-TV in Madison reports a compromise deal which will keep service running as-is for now, but subject WiscNet to government approval of any expansion efforts.  (1 minute)

Contrasting America and Canada’s Broadband Policy Debates: Canada Wins

Watching two governments — one in Ottawa, the other Washington — debate important broadband issues has been an illuminating experience for this American.  As Canada continues to deal with a firestorm of protests against broadband pricing ripoffs from usage-based billing, the debate over Net Neutrality achieved new levels of absurdity in Washington yesterday as a largely Republican crowd fought to overturn the FCC’s watered-down open Internet protection policies.

Watching and listening to a combined eight hours of hearings both north and south of the border this month has cast a striking contrast between our two governments.  After it was all over, I can forgive anyone who decides Congress is filled with a bunch of uninformed meat-heads who fight for the talking points attached to their fat contribution checks from the telecommunications industry.

It is unseemly watching Republicans fall all over themselves to impress AT&T, Verizon, and Comcast with their grasp of these companies’ arguments against an open and free Internet.  There are also some bad Democrats on AT&T and Verizon’s virtual payroll, but the hearings this week in the House of Representatives were over the top — a Republican Valentine’s Day present for Big Telecom, replete with clueless representatives who clearly don’t understand the concept of Net Neutrality beyond the 3×5 index cards handed to them by one of their respective staffers.  For the most reactionary members, handing out photoshopped-pictures of Leon Trotsky hugging Barack Obama in front of a spool of fiber optic cable would have been just as effective.

The deservedly-undercovered Judiciary Committee hearings featured a single wireless ISP (WISP) owner who appears to spend most of his free time writing in the Comment sections of major American newspapers and social media sites.  His concern?  A technicality in the current Net Neutrality rules about customers running web servers.  ServerGate.  There’s a hot button issue if there ever was one.  Brett Glass’ customers are much more interested in watching online video, a concept that frightens a lot of WISP owners into placing usage caps on their service to discourage them from doing that.

Chairman Walden

Another witness at that hearing came straight from a telecom industry funded think tank.  Inviting AT&T to appear themselves would have effectively cut out the middleman and saved everyone a whole lot of time.

Gigi Sohn from Public Knowledge was left alone to stick up for Julius Genachowski’s cowardly-lion Net Neutrality rules, which in this author’s opinion are barely better than nothing, fatally flawed and one court decision away from oblivion.

Yesterday’s hearing featured FCC Commissioners on a partisan griddle as members of Congress asked softball questions of those they favored, and strafed the ones they don’t with long-winded lectures.

Republican members had no time for stories of Providers Gone Wild, particularly Comcast’s secret squeeze of its customers’ broadband speeds when running peer-to-peer software.  Such stories conflict with their talking point world view that broadband from the private sector should be run any damn way they please.  When some go to far, “they are isolated incidents” claimed Republican members, to the nodding affirmation of the two Republican commissioners.

Julius Genachowski was reduced to defending his homeopathic net regulations as a regulatory “light touch” — like a dew kissed raspberry on a summer morning.  But representing regulation as harmless didn’t do him any favors, because he forgot his audience.

Drive-by Hearing: For much of the hearing, C-SPAN cameras caught most of the seats empty as members came and went.

No argument about moderated government regulation is ever going to fly in a room with members like Rep. Marsha Blackburn (R-Tenn.) who spent her five minutes of talk time scorching the FCC for holding up the Comcast-NBC merger with questions.  How. dare. they.

Congressional hearings used to be about fact finding and allowing members to educate themselves on the issues before casting their votes.  No more.  These days, hearings are an exchange of preconceived talking points as members switch between grilling or ignoring the witnesses they don’t like while fawning over those they do.

GigaOm called the entire affair “nauseating” and helpfully condensed the only three things you need to take from the hearings:

  • FCC Chairman Genachowski said the Level 3 and Comcast debate over access to Comcast’s last mile subscribers is a business issue and not a net neutrality issue.
  • FCC Commissioner Robert McDowell resurrected the ghost of unlicensed white spaces and set it up as a competitive threat to existing ISPs. He then used that threat of eventual competition to argue we no longer need net neutrality rules. I tend to agree that if we had robust broadband competition, we wouldn’t need network neutrality, but according to McDowell, white spaces aren’t dead. If they aren’t dead, that’s important.
  • The FCC will keep the docket open on its effort to reclassify broadband, which would give the FCC the legal authority under existing laws regulate broadband as a transportation service (the so-called Title II authority). This is a good thing for network neutrality fans, as the existing net neutrality rules will likely be challenged in court, and keeping that docket open leaves a back door for the FCC to implement rules. However, the industry hates the idea of reclassification and will fight it tooth and nail. It also means more hearings, comments and arguments over the entire issue.

Contrast this with more than a week of hearings in Canada on usage-based billing.  The differences are nothing less than striking.  Members attending those hearings were well-informed about most of the issues surrounding the usage-based billing debate and aside from the occasional minor grandstanding and long-winded questions, got to the bottom of the issues at hand and were prepared to challenge assertions made in all sides of the debate.  They even pronounced everything correctly.  A 10 minute exchange over the pricing formulas for Bell’s wholesale Gateway Access Service (GAS) probably won’t get you a soundbite on the evening news, but it will enlighten a member of Parliament about just how unjustified these pricing schemes are.

Not so in Washington, where net policy nuance is a French word meaning “weakness” or “socialist takeover.”

Bell Canada must surely wish they lived in a country where the hired help in Congress can reflexively support whatever is on the company’s agenda… for the right price.  For the moment, they are stuck exchanging Valentines with their close friends at the Canadian Radio-television and Telecommunications Commission, most of whom came from the industry they now regulate.

Minutes after Washington’s hearings ended, several Republicans, with their minds already made up, introduced a Joint Resolution to override the FCC’s authority on Net Neutrality and sweep the free and open Internet into a dustbin.  There are new owners of the Internet in town and it’s past time you got used to it — they are AT&T, Verizon, and Comcast.  Your bill is in the mail.  You can thank us now or later.

Congress' Joint Resolution requires a simple majority -and- the President's signature to pass. Ironically, the Republicans touted the measure as "filibuster-proof," but considering the president is likely to veto it, a filibuster is the least of their problems.

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