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Time Warner Cable: Our Condolences to Verizon if They Signed the CBS Deal We Rejected

Phillip Dampier August 28, 2013 Consumer News, Online Video, Video 5 Comments
witmer

Witmer

If what Time Warner Cable claims is true, the stalemate that has kept CBS content away from subscribers for four weeks may be less about the money and more about CBS’ desire to control your viewing experience.

Melinda Witmer, TWC’s chief video and content officer, reports CBS is demanding daunting new restrictions in their proposed renewal contract, including requiring customers to “register their television sets” with CBS before being able to turn them on.

Witmer said CBS’ demands also include new powers over DVR capabilities, which means CBS could possibly prevent customers from fast-forwarding through commercials or even block the recording and/or storage of certain programs without network permission.

“CBS announced that they signed a deal with Verizon (FiOS TV) and has suggested that they offered us the same deal Verizon just signed,” Witmer said. “All I can say is our condolences to Verizon if they signed the deal CBS put in front of us. I hope for Verizon’s sake that they didn’t sign that, but if they did I’m glad for us because we’ll compete that much better against them when we finish our deal.”

Cable operators are seeking expanded rights from programmers as customer viewing habits evolve. Among the most important are those that would allow online and on-demand streaming of programming to authenticated cable subscribers.

Time Warner Cable has invested considerable resources in its online viewing platforms for PC’s, smartphones, and tablets, providing most of the TWC lineup on those portable devices. But the service has been largely limited in-home viewing because the cable company is having trouble securing permission to stream most of that content for those on the go.

Time Warner Attempts to Placate Impacted Customers

twcAlthough Time Warner Cable is crediting customers for the loss of Showtime/The Movie Channel, blocked by the cable operator while the impasse continues, Time Warner is not giving any automatic refunds for the loss of CBS basic or broadcast programming and networks taken off the cable dial. CBS-owned Smithsonian TV is the most affected basic cable channel nationwide. Some customers who pay extra for Smithsonian as part of an added-cost HD Tier often known as “TWCHD Pass” have gotten service credits upon request.

Time Warner Cable is giving out free over-the-air antennas to customers in cities where local CBS-owned stations have been taken off the cable lineup.

Time Warner Cable has a limited quantity of free basic indoor antennas available for customers at TWC retail locations in Dallas-Ft. Worth, Los Angeles/Desert Cities, New York City, Milwaukee and Green Bay, Wisc. In addition, TWC has partnered with Best Buy in those cities to provide $20 toward the purchase of any in-stock broadcast antenna at select Best Buy store locations. The cable company has published a list of retail locations where antennas are available as long as supplies last. Limit one per customer and installation is your responsibility.

Radio Shack has also taken advantage of the situation by slashing prices on an AntennaCraft Amplified Omnidirectional HDTV Antenna, now available online for $37.49 – a 25 percent discount. Best Buy is supporting Time Warner Cable’s position in the CBS dispute. Radio Shack is not, telling customers its antennas make it easy to “cut the cable.”

Time Warner is appeasing tennis fans with enhanced coverage of the 2013 US Open Tennis Championship Series with a free preview of The Tennis Channel running Aug. 26 through Sept. 9.

The blackout is also keeping Time Warner Cable, Bright House, and Earthlink (supplied by either cable operator) broadband customers from watching CBS content online.

If you now receive this channel Here’s how your Time Warner Cable video service is impacted
CBS from NYC, LA, Dallas-Ft Worth, Boston, Chicago, Denver, Detroit, Pittsburgh -The CBS channel has been removed from your lineup
-CBS Primetime on Demand is now unavailable
-StartOver and LookBack services on all CBS-owned stations are unavailable
CBS from any city other than the ones listed above -CBS Primetime on Demand is now unavailable
-StartOver and LookBack services on local CBS affiliate stations are unavailable
Flix Flix is now unavailable
The Movie Channel The Movie Channel and The Movie Channel on Demand are now unavailable; TWC is providing replacement programming from Encore on a temporary preview basis–look in your guide for channel numbers.
Showtime Showtime, all its associated multiplex channels, and Showtime on Demand are now unavailable; TWC is providing replacement programming from Starz on a temporary preview basis–look in your guide for channel numbers.
Smithsonian Channel Smithsonian and Smithsonian on Demand are now unavailable

The Federal Communications Commission said it is trying to resolve the fee dispute from Washington.

“The commission is engaged at the highest levels with the respective parties and working to bring the impasse to an end,” Justin Cole, an agency spokesman, said in an e-mailed statement yesterday. “We urge all parties to resolve this matter as quickly as possible so consumers can access the programming they rely on and are paying for.”

But acting FCC chairwoman Mignon Clyburn also admitted the FCC has few powers to intervene and compel an agreement.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/TWC Melinda Witmer on CBS Blackout 8-24-13.flv[/flv]

Time Warner Cable’s Melinda Witmer, head of the team negotiating with CBS, suggests the network is demanding unprecedented control over your viewing experience — a deal breaker for the cable operator.  (6 minutes)

Nader: Don’t Let That Tax Dodging, Grant Taking, Ripoff Artist Verizon Into Canada

From the Desk of Ralph Nader

From the Desk of Ralph Nader

21 August 2013

Prime Minister Stephen Harper
Office of the Prime Minister
80 Wellington Street
Ottawa, ON K1A 0A2

Dear Prime Minister:

I read with interest that you are considering allowing Verizon Communications to operate in Canada with unique acquisition rights.

Bad idea.

Before you proceed any further, I suggest that you read a report by the highly regarded Center for Tax Justice and Good Jobs First titled, “Unpaid Bills: How Verizon Shortchanges Government Through Tax Dodging and Subsidies.”

Bottom line: Verizon is one of the country’s most aggressive corporate tax dodgers.

The report found that Verizon enjoyed some $14 billion in federal and state corporate income tax subsidies in the 2008-2010 period, even though it earned $33.4 billion in pre-tax U.S. income during that time. At the federal level, Verizon should have paid about $11.4 billion at the statutory rate of 35 per cent during the three-year period. Instead, it actually got $951 million in rebates, putting its federal tax subsidies at $12.3 billion. Its effective federal tax rate was 2.9 per cent.

The report found that at the state level, Verizon should have paid about $2.3 billion in corporate income taxes during the period but it paid only $866 million. Its aggregate state rate was only 2.6 per cent, far below the weighted state average rate of 6.8 per cent. This gave it state tax subsidies of about $1.4 billion.

Verizon also used a special tax loophole called the Reverse Morris Trust to avoid paying about $1.5 billion in federal, state and local taxes on the sale of its landline assets in various states.

The report found that Verizon also aggressively seeks state and local tax subsidies through credits, abatements and exemptions.

There is no centralized reporting on these subsidies, but the report documents $180 million in special tax breaks and grants Verizon and Verizon Wireless received in 13 states.

In addition to aggressively dodging taxes, Verizon also overtly rips off our federal government.

In April 2011, for example, Verizon paid $93.5 million to settle whistleblower charges that it had billed the government for “tax-like” surcharges it wasn’t entitled to impose on the government. Hidden surcharges on communication services have long been an unwelcome cost to business and consumers, and the General Services Administration had negotiated a firm, fixed-price contract with limited surcharges precisely to avoid being hit with hidden surcharges, the whistleblower alleged.

“Verizon was not only charging the government for the costs associated with communication services, but it also was pumping up its revenues by charging the government for Verizon’s own property taxes and other costs of doing business,” said Colette Matzzie, a Washington, D.C., attorney with Phillips & Cohen LLP, who represented the whistleblower. “Under federal law, Verizon was responsible for paying those costs, not the government.”

The settlement agreement covers the period from 2004 to 2010, when Verizon allegedly billed the government for a variety of surcharges including property tax surcharges, carrier cost recovery charges, state telecommunications relay service surcharges and public utility commission fee surcharges.

Question: why would you allow one of our country’s most aggressive tax dodgers, a company with a track record of overtly ripping off our government, into your country?

What’s bad for the United States will be bad for Canada.

Sincerely,

Nader

 

Canadian Wireless Carriers Freak Out Over Rumored Verizon Entry; Panic Buttons Pressed

upsetcableguyThe three companies that control 90 percent of Canada’s cell phone marketplace have set what they argue is ‘cut-throat’ competition aside to team up in a multi-million dollar lobbying campaign to discourage Verizon Wireless from entering the country.

Bell, Rogers, and Telus have maintained what critics charge is a “three-headed oligopoly” in the wireless business for years, leading to findings from the OECD that Canada is among the ten most expensive countries in the world for wireless service in almost every category and has among the highest roaming rates in the world.

Americans also pay high cell phone prices, and customers of both countries will find somewhat comparable pricing when comparing prices north or south of Lake Ontario. A shopper in Niagara Falls, N.Y. can find the Samsung Galaxy S4 from a Verizon reseller for $120 with a two-year contract. A shared data service plan runs as little as $80 a month for 500MB of data and unlimited domestic calling and global texting. Travel across the Rainbow Bridge to Niagara Falls, Ontario, walk into a Rogers store and the same phone runs $199 with a two-year contract (most Canadian carriers used to offer three-year special reportcontracts until the government banned them earlier this year) and a service plan running $80 a month offering the same 500MB of data and unlimited domestic calling and texting. Rogers charges extra if customers want to text a customer outside of Canada, however.

Verizon is no discount carrier. Verizon management has repeatedly stressed it offers premium service and coverage and can charge commensurately higher prices for access to that network. So the idea that Verizon’s interest in entering Canada is to launch a vicious price war is suspect, according to many telecommunications analysts.

Keep Verizon out of Canada at all costs!

They are coming.

They are coming.

In June, the Globe and Mail reported Verizon had shown serious interest in acquiring Canadian cellular upstart Wind Mobile with an early bid of $700 million. Wind Mobile, one of the three significant new “no-contract” entrants vying for a piece of the country’s cell phone market, has limped along since opening for business in 2009, unable to attract much interest from customers concerned about coverage gaps and the poor choice of mobile devices.

More recently, Wind Mobile’s new owner — the Russian mobile giant Vimpelcom — has expressed an interest in selling off the carrier because it cannot gain traction against the biggest three, which also control 85 percent of mobile wireless spectrum.

News that Verizon had taken an interest in the carrier leveled shock waves across the Canadian financial markets. Shares in the three largest telecom giants fell sharply on the news. Earlier this month, Bell CEO George Cope reported that Bell, Telus and Rogers have taken a $15-billion cumulative hit on the capital markets since Verizon hinted interest in Wind Mobile.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/CBC Verizon takes aim at telecom Big 3 with possible Wind Mobile bid 8-19-13.flv[/flv]

The CBC reported earlier this summer that Verizon Wireless was interested in acquiring the 600,000 customers of independent wireless provider Wind Mobile, which has an insignificant share of the Canadian wireless market. (2 minutes)

Spending a few million, or even a billion dollars, to keep Verizon south of the Canadian-U.S. border is well worth it to the three big players who have launched an expensive campaign to block the proposed transaction and are willing to pay premium prices to keep struggling carriers from being sold to deep-pocketed American telecom companies.

bribesTelus had already done its part, attempting to scoop up another scrappy upstart carrier that wanted out of the wireless business. But the Canadian government rejected Telus’ proposed acquisition of Mobilicity, claiming it would harm efforts to expand Canadian wireless competition. Not to be deterred, Rogers is now attempting a cleverly structured deal to acquire Wind Mobile out from under Verizon with a proposed buyout worth more than $1 billion.

To avoid the anticipated rejection of the deal by Canadian regulators on competition grounds, Rogers has reportedly joined forces with Toronto-based private equity firm Birch Hill Partners that would make that firm the owners-in-name. Although Rogers wouldn’t get a direct equity stake in Wind, it would finance a good part of the deal and win access and control of Wind’s mobile spectrum for its own network. More importantly, it could keep Verizon out of Canada.

“The government is handing out loopholes to Verizon to beg them into Canada”

Cell phone companies in Canada are particularly angry that the government has set aside certain spectrum and guaranteed access for upstart providers to successfully establish themselves without having to outbid the cash-rich big three for wireless frequencies or have to build a nationwide network from scratch. Bell, Rogers and Telus have consistently opposed spectrum set-asides for small carriers, deeming them “unfair.” They argue Canadians’ voracious needs for more wireless service are unending, and it would be unfair not to sell the spectrum to benefit their larger customer bases. But hearing that Verizon, a company larger than Bell, Rogers, and Telus combined, could get preferential treatment and spectrum to enter the country has them boiling mad.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC Telecom debate 8-19-13.flv[/flv]

Bell’s CEO George Cope appeared on “The Lang and O’Leary Exchange” to debate the fairness of Verizon’s possible entry into Canada’s wireless market. Cope argues Verizon is getting special favors. (9 minutes)

Cope

Cope

The idea of luring a company to move or begin offering service in a barely competitive marketplace is hardly new. Cities have offered preferential policies to airlines to fly in and out of particular cities, local governments have offered tax abatements to get companies to set up shop, and providing exemptions for zoning and infrastructure have been familiar to telecommunications companies for decades.

In 1880, the National Bell Telephone Company had incorporated, through an Act of Parliament, the Bell Telephone Company of Canada (today also known as BCE), which was given the right to build telephone lines over and along all public property and rights-of-way without compensation to the public or former owners. Through a series of mergers and acquisitions, Bell would later become the dominant monopoly provider of telephone service across much of eastern Canada.

When the phone companies were handed wireless spectrum to launch their wireless businesses in the 1980s, they didn’t have anything to complain about either.

None of that history impressed Bell’s current CEO George Cope, who took to the airwaves to complain Verizon was being given preferential treatment:

  • Verizon could bid on two blocks of Canadian spectrum set aside for new entrants to the market in auction later this year. Because the big three Canadian firms are not permitted to bid on these blocks, they are likely to be sold at a lower price.
  • Verizon would not have to build its own networks to remote or rural communities, but would be able to piggyback on existing networks.
  • Verizon can bid to acquire small Canadian companies such as Mobilicity or Wind, but Bell, Telus and Rogers are forbidden from bidding on them.

“A company of this size certainly doesn’t need handouts from Canadians or special regulatory advantages over Canadian companies,” Bell said in a full-page newspaper ad. “But that is exactly what they get in the new federal wireless regulations. We’re ready to compete head to head, but it has to be a level playing field,” Cope said in a TV interview, echoing Rogers CEO who also called for a “level playing field.”

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC Is Verizon really the bogeyman Canada’s telecom giants claim 8-19-13.flv[/flv]

Bell, Telus, and Rogers have launched a lobbying campaign designed to make life difficult for Verizon Wireless if it chooses to enter Canada. The CBC reports Verizon will be able to bid on more spectrum than Canadian carriers and will have the right to roam on Canada’s incumbent wireless networks. (2 minutes)

Industry Minister Moore

Industry Minister Moore

Telus went further, claiming Verizon’s entry into Canada would result in a “bloodbath” for Canadian workers, laid off by the three largest Canadian providers to cut costs to better compete with Verizon.

But Cope said at least one Canadian carrier won’t be able to compete at all, because preferential treatment for wireless spectrum will result in at least one of the big three to lose at a forthcoming spectrum auction, guaranteeing degraded wireless broadband speeds and worse service.

The three companies have found little sympathy in Ottawa, particularly from Industry Minister James Moore, now on a road tour across Canada to promote the government’s wireless competition policies. He called the big three’s loud campaign self-serving and announced a new website sponsored by the Conservative Party of Canada to prove it.

“I think that the public instinctively knows that when they have more choices that prices go down and more competition they’re well served by that,” he told CBC News in Vancouver on Monday. “The noise that we’re hearing is about you know companies trying to protect their company’s interest. Our job as a government is larger than that, our job is to serve the public interest and make sure that the public is served in this so that’s one of the reasons why I’m pushing back a little bit.”

Industry Minister James Moore appeared on CBC Radio this morning to contest the wireless industry’s claims that Verizon is getting special treatment and will bring unfair competition to the Canadian wireless market. (7 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

Oppose Verizon Wireless. Do it for Canada!

But the wireless companies show no signs of backing down and have turned towards appealing to Canadian nationalism and fairness.

fair for canada“The U.S. government is not giving Canadian wireless carriers any special access to the U.S. market,” says a website launched by the big three cell providers to drum up support for a “level playing field.” “Then why is it that our own government is giving American companies preferential treatment over our own companies?”

This week, a Reuters report citing unnamed sources suggests Bell, Telus, and Rogers are about to target Verizon directly with a new campaign warning Canadians the American giant has been implicated in allowing the U.S. government open access to network and customer data, which would represent a profound privacy threat to Canadian customers.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bell Rogers Telus Ad 8-13.flv[/flv]

Bell, Telus, and Rogers paid to produce this ad calling on Canadians to protest unfair competition from an American wireless company.  (1 minute)

So far, Canadians’ hatred of their telecommunications providers has trumped the companies’ public relations and scare tactics. The Conservative government in Ottawa is winning support for its wireless competition war, even from unlikely places.

tweet“Someone mark the date,” Tweeted one Halifax woman not inclined to vote Conservative. “Stephen Harper has done something I mostly support.”

“Eat it Telus/Bell/Rogers,” wrote a Calgary man fed up with the lack of competition in Canadian wireless.

John Lawford, executive director of the Public Interest Advocacy Centre in Ottawa, says opposition from the big three telecom companies is obvious because they don’t want to face a fourth, powerful competitor.

“They should be scared because chances are they’re going to have more competition in the Canadian market if Verizon comes in and they are going to have to lower their prices and compete harder,” Lawford told CBC News. “It’s pretty rich of them to be talking about unfairness” when they already control 90 per cent of Canadian spectrum, he added.

Iain Grant of the SeaBoard Group, a telecommunications consultancy, said government policies to open up more competition are designed to shake things up.

“[The new rules weren’t] meant to be a level playing field,” said Grant. “[They were] meant to give a leg up [to new competitors].”

“To talk of loopholes, as some do, is to not understand that the same companies who complain most loudly about loopholes in 2013 were the recipients of even greater public largesse in 1985 when the government gifted their initial spectrum as an incentive to build a wireless business in Canada,” said Grant.

wireless north america

Few companies have taken on the Canadian big three telecom providers because of their enormous market share, at least inside Canada.

Nine out of ten Canadian wireless users are subscribed to Bell, Telus or Rogers. Trying to convince a banker to extend capital loans to effectively confront a wireless oligopoly in a country with an enormous expanse of land but not people and find enough airwaves among the 15% not controlled by the big three is an uphill battle.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC Wireless war heats up 8-19-13.flv[/flv]

CBC reports Industry Minister Moore believes increasing competition is the best way to cut Canadian cell phone bills. Regardless of whether Verizon enters Canada, the current government will continue to push for more competition. Even the threat of Verizon coming to Canada has already reduced prices. (2 minutes)

Why does Verizon want to enter Canada?

roamingAnalysts suspect Verizon’s interest in Canada has little to do with wooing Canadians to Big Red. Many suspect Verizon’s true interest is to make life easier for its traveling American customers who head north for business or pleasure.

Chief among the possible benefits is the elimination of roaming charges for Verizon customers.

“Verizon’s customers come into the country every day through all the bridges and ports of entries and they want to roam where they want to roam, whether that’s fishing in Saskatchewan or hunting in northern Ontario or wherever,” said Grant.

There are other apparent impediments that could limit the usefulness of Wind’s mobile network to Verizon. In addition to only operating in the largest Canadian cities, Wind’s infrastructure is built by Chinese firm Huawei and is not compatible with Verizon’s technology.

Huawei has been the subject of significant controversy because of its reported ties to the Chinese military. Fears that data could be intercepted by the Chinese government have kept many North American firms from doing business with the company.

Verizon also lacks bundling options for Canadian customers. The biggest three Canadian providers can offer telephone, television, and wired broadband service to their customers. Verizon can only offer wireless service.

Verizon has second thoughts

Perhaps most remarkable are late reports that Verizon may be having second thoughts about jumping into Canada’s wireless market.

Desjardins analyst Maher Yaghi said Verizon may have delayed its plans until after Ottawa’s auction of 700MHz spectrum planned for January to better understand the potential spectrum costs it will incur entering Canada.

Others speculate incumbent providers may be attempting to end the rationale for Verizon to enter Canada in the first place. One major development includes a much more favorable roaming deal for Verizon that could dramatically cut the costs for Verizon customers to roam on Canadian networks.

Regardless of what Verizon does, Industry Minister Moore says Canada’s goal of getting increased competition will continue.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/CBC Verizon doubts 8-15-13.flv[/flv]

CBC reports Verizon may be having second thoughts about entering Canada. Verizon may not be interested in entering a political battle to win licenses to provide service and may want to acquire its own spectrum before considering buying either Wind Mobile or another competitor like Mobilicity. (2 minutes)

Baltimore Let Down by Big Telecom; Considers Its Own Public Broadband Network

Baltimore City sealWaiting for Comcast and Verizon to offer cutting edge broadband to 620,000 Baltimore city residents and businesses appears to be going nowhere, so the city is hiring an Internet consultant to consider whether to sell access to its existing fiber network.

Baltimore officials spent at least a year trying to convince Google to launch its fiber network in the city only to be bypassed in favor of Kansas City, Austin, and Provo, Utah. Local unions and community groups have also attempted to embarrass the local phone company by publicly protesting Verizon’s lack of interest in expanding its fiber optic network FiOS in Baltimore. Comcast has proved a disappointment for many, with the latest technology going to other cities well before Baltimore gets improved service.

Baltimore’s Board of Estimates voted to spend $157,000 to hire Magellan Advisors to produce a cost-benefit analysis of expanding the city’s current fiber infrastructure to deliver better Internet access.

“I’m paying more here for lesser service, so I think one of the things we want to try to do is look at that, look at what [current companies] offer and try to incentivize people to offer more,” Baltimore’s chief information officer Chris Tonjes told the Baltimore Business Journal. “In the short term, we’re going to do a study. In the medium run, we’re going to try to renegotiate the cable franchise agreement. In the longer run we want to make it more profitable for providers to come in here and offer the expanded service.”

analysisLike many cities, Baltimore already owns and operates its own fiber ring, built with public funds to support the city’s public safety radio system. Like many municipal institutional fiber networks, Baltimore’s fiber ring is underutilized. Public safety and other institutional users often use just a fraction of available capacity. Despite the fact such networks are often oversized, they are rarely controversial because they do not typically compete with commercial providers and are usually off-limits to the public.

As Baltimore prepares to update their existing fiber infrastructure, Magellan will study the implications of leasing excess capacity to third-party providers that can sell broadband access to private businesses and individuals. Even Comcast and Verizon would be welcome to lease capacity.

Neither company has shown much interest, and the proposal received a strong rebuke from Maryland Sen. Catherine Pugh (D-Baltimore City):

Pugh

Pugh

For the most part, municipally-built broadband networks have the economic chips stacked against them and, where tried, have saddled local taxpayers with a mountain of debt and half-built networks that are then sold at fire-sale prices to vulture investors. Taxpayers in Provo, Utah, for instance, spent $40 million to build a relatively small and modest network only to sell it for $1 a few years later because they underestimated the massive costs of operating, upgrading and maintaining it.

But Provo is just the latest exhibit in a long pantheon of such failed initiatives that include Groton, Conn., ($38 million taxpayer loss) and Marietta, Ga., ($35 million taxpayer loss). Cities as large as Philadelphia, New York and Chicago and as small as Lompoc, Calif., and Acworth, Ga., have also tried and failed to launch their own broadband networks — or simply gave up.

Pugh’s editorial, published in both the Wall Street Journal and The Baltimore Sun, failed to disclose Pugh has received political campaign contributions from both Comcast and Verizon. More importantly, Pugh did not bother to mention she is the president-elect of the National Black Caucus of State Legislators, a group with close ties to both Comcast and Verizon Communications.

Among the “member corporations” of the NBCSL — companies who “weigh in” on the policies promoted by the group: AT&T, Comcast, CTIA – The Wireless Association, the National Cable & Telecommunications Association, Time Warner Cable, and Verizon.

Among the NBCSL's roundtable members: AT&T, Comcast, Time Warner Cable, and Verizon

Among the NBCSL’s roundtable members: AT&T, Comcast, Time Warner Cable, and Verizon

For the fourth consecutive year, Verizon hosted its Black History Month open house at the Reginald F. Lewis Museum in downtown Baltimore. This year, among Verizon’s special guests: Maryland Senator and president-elect of the National Black Caucus of State Legislators Catherine Pugh. Comcast has also opened its checkbook to the NBCSL. Among the contributions — $50,000 to form the “NBCSL/Comcast Broadband Legislative Fellowship” to “increase efforts to conduct research and develop solutions regarding broadband adoption among African Americans.”

Opening up a competitive, lower-priced broadband alternative owned by the citizens of Baltimore is not one of Pugh’s favored solutions to be sure.

The NBCSL has been more than a little preoccupied with the business agendas of its corporate members. The group’s glowing endorsement of the Comcast-NBCUniversal merger was so positive, Comcast continues to present the group’s submission urging approval of the merger on its website. In 2011, the NBCSL signed on to the campaign to get government approval of the now-dead merger of AT&T and T-Mobile USA, claiming it was in the best interests of African-Americans. Just this month, Time Warner Cable quoted the group’s comments on the dispute between the cable company and CBS on its website.

Stop the Cap! has refuted claims that public broadband is a financial failure in the past. Read our fact check here.

Although Comcast has been the dominant cable provider in Baltimore for years, its monopoly status is “de facto” only, because federal law prohibits exclusive cable franchise agreements. That being said, no other well-known cable provider will agree to offer service in competition with another. Overbuilders — small private entities that have business plans that depend on competing with incumbent operators, are few and far between. For most Americans, the only cable competition comes from satellite providers or the phone company. Satellite television lacks a broadband option and Verizon’s local broadband infrastructure is limited to providing DSL service.

Tonjes

Tonjes

Tonjes hopes the possibility of a public broadband alternative might shake up the city’s broadband landscape, but not every neighborhood is now passed by the city’s fiber ring.

Jason Hardebeck, the executive director of the Greater Baltimore Technology Council, told the Journal municipal Wi-Fi could help fill the gap.

“One of the things we’ve talked about at the GBTC is, could this form the basis of a municipal Wi-Fi network in bringing wireless access to some underserved parts of the city,” Hardebeck said. But, he added, “municipal wireless is not a slam dunk. There’s a lot of challenges depending on how deep the coverage area is.”

Pugh is presumably opposed to municipal Wi-Fi solutions for the poorest urban African-American neighborhoods in her city as well, having criticized efforts to bring municipal wireless Internet access to similar neighborhoods in Philadelphia, where Comcast’s corporate headquarters are located.

“The city is woefully underserved with broadband and my opinion is that internet access is becoming a basic public utility or need, just like clean water,” Hardebeck told the Journal. “The current administration understands the need. I don’t know what we can do about the franchise agreement, but I think there’s real opportunities from a redevelopment standpoint. If you had access to ultra-high broadband inexpensively, that could generate activity you would not have anticipated.”

Supreme Court Justice Samuel Alito’s Big Telecom Stock Holdings Affect Court Rulings

Alito

Alito

Justice Samuel Alito was forced to recuse himself from nearly six dozen cases brought to the Supreme Court in the last 10 months because the Alito family owns stock in many of the corporations involved in litigation.

When Alito’s wife Martha Ann’s father died last year, the Alito family inherited a wealth of stock worth up to $1.25 million in some of America’s largest companies, including AT&T and Verizon Communications.

The Associated Press reports Alito’s tardy financial disclosure for 2012 revealed the justice’s reasons for recusal: his sudden ownership of shares in large telecom, pharmaceutical, oil and gas, and tobacco companies.

Federal law requires justices to step away from cases where there is a financial conflict of interest. Alito’s inherited stock represents just such a conflict.

In one case, however, Alito found himself holding Comcast Corp. stock after hearing arguments in a massive class action antitrust case representing two million customers the plaintiffs argued were being overcharged by an illegitimate cable monopoly.

Alito’s Comcast stock was purchased and sold last December. The Court’s 5-4 decision, written by Justice Antonin Scalia, was announced March 27. Alito’s deciding vote fundamentally raised the bar on future lawsuits, making it much more difficult for class action cases to be brought before the courts.

The Comcast suit, in the courts since 2003, argued that cable subscribers in Pennsylvania, New Jersey and Delaware were overcharged at least $875 million because of Comcast’s efforts to monopolize cable service in the Philadelphia area. Comcast amassed its dominant position by buying or swapping cable systems in the region to create a single large cable provider serving the majority of southern New Jersey, Delaware, and southeastern Pennsylvania. By 2002, the lawsuit claimed, Comcast had achieved a 77.8 percent market share.

Big, Bigger, Biggest, Still Bigger

Comcast argued the lawsuit was too complicated and its proposed method of calculating damages was faulty. The Court’s conservative justices agreed with Comcast, finding the lawsuit fell “far short of establishing that damages are capable of measurement.”

  • Voting for Comcast’s position: Chief Justice John Roberts and Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito.
  • Voting against Comcast: Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan.

A study recently published in the Minnesota Law Review found the current Supreme Court is by far the most corporate-friendly of any court in at least 65 years, noting “the Roberts court is indeed highly pro-business — the conservatives extremely so and the liberals only moderately liberal.”

The top two most likely to vote in favor of big business among all justices seated since 1946 are Chief Justice Roberts and Justice Samuel A. Alito, Jr.

“There was a time when being ‘business-friendly’ meant giving corporations a leg-up and a level playing field because doing so creates jobs and bolsters the economy,” wrote Supreme Court reporter Jonathan Valania. “Today, ‘business-friendly’ means letting corporations socialize their costs while privatizing their profits. It means letting corporation literally write the laws that govern them. It means rolling back regulations and de-fanging oversight [….] What we are really talking about is corporatism.”

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