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CPUC Tells Northpoint To Restart Network

cprael writes: "According to San Jose Mercury article, the California Public Utilities Commission has ordered Northpoint to relight their network and provide all California customers service for 30 days. The intent being to allow them time to migrate to a new service in an orderly manner. This is probably the tip of the iceberg in terms of court actions - personally, I expect to see a lot of lawsuits aimed at Northpoint, the ISPs, and anyone else within reach over Northpoint's abrupt shutdown." It will also probably strike at the heart of arguments about how regulated (and by whom) ISPs ought to be.

48 of 96 comments (clear)

  1. Re:Time for state-owned providers? by Anonymous Coward · · Score: 2

    Well said.. for a communist. While we're at it though, let's add government provided health care, electricity, telephone service, cable TV (we just HAVE to have cable.. have you watched broadcast tv lately?), gas, and water. I think everything should just be provided by the government and we should just give our entire paychecks to them in the form of taxes. That'd be a great idea. Then when you want food you just go up to the local government owned grocery store, show your state ID and have them swipe it to see if there is any credits left on your fair share allotment of food.

  2. Here I am, waiting for my DSL to die... by Anonymous Coward · · Score: 3

    I live in Brooklyn, NY in a neighborhood that the cable companies would like to think doesn't exist and where I have limited DSL availability. I was very pleased with my ISP (Evolving Edge), but this Northpoint thing has me wondering something (besides when my DSL will shut off)...

    Are we trying to enter the information age too quickly?

    Northpoint isn't the only one in trouble, many bandwidth providers are in it deep.
    The TINY, TINY margins on computing hardware can't possibly sustain the general computing hardware industry (PC organ bank).
    Software is still a black art, even to the wizards.

    Have you guys ever stopped to consider that the vast majority of the gains we've made in the computer industry has been the result of two things:
    1. Running in the red and living on capital until we either drive the competition under or our investors come to collect.
    2. A process model of development (hardware AND software) that rewards flying-by-the-seat-of-our-pants and brute-force solutions instead of a careful engineering methodology.

    Perhaps we need a technology (bandwidth, hardware, software) crash that pauses Moore's law for 10 years while we take the time to think up elegant and sustainable solutions to the problems we are tryin to solve?

    1. Re:Here I am, waiting for my DSL to die... by unitron · · Score: 2

      Oh, come on. It's far too well thought out and coherent to be Katz.

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

    2. Re:Here I am, waiting for my DSL to die... by nyet · · Score: 2

      Have you guys ever stopped to consider that the vast majority of the gains we've made in the computer industry has been the result of two things:
      1. Running in the red and living on capital until we either drive the competition under or our investors come to collect.
      2. A process model of development (hardware AND software) that rewards flying-by-the-seat-of-our-pants and brute-force solutions instead of a careful engineering methodology.


      100% correct!

      Except its not just the computer industry.. almost every aspect of technology that was built by our economic model follows the same trend. Nasty, expensive, un-maintainable kluges ALWAYS win over the technically sweet solution, usually for one (or several) of the following reasons:

      1) time to market
      2) short term cost vs long term advantages
      3) standards wars
      4) intellectual property
      5) a gullible public
      6) perenially ignorant lawmakers (who are by definition always behind the technological curve)

  3. Re:Unfortunatly, there realy is no more Northpoint by volsung · · Score: 2
    Haven't you see the Exploding Whale video? Don't you know what happens when you blow up big, dead things?

    Jeez, man. THINK!

  4. Re:Unfortunatly, there realy is no more Northpoint by volsung · · Score: 3
    I think timothy did it a bit more subtly in the department text:
    from the john-galt-networks-inc. dept.

  5. Cheap shot by Zigurd · · Score: 2

    Cheap shot, as in $0.63 on the dollar(CAD).

  6. Bandwidth as a utility - not by Zigurd · · Score: 2
    The reason the PUC can plausibly, if not practically, tell Northpoint what to do is that Northpoint is a CLEC, and so has particular rights and responsibilties. Northpoint, unlike as ISP, must register with the PUC to get the benefit of being able to demand that ILECs supply it with UNEs (elements of the telephone network it can rent).

    Some ISPs are CLECs because they need to rent local loops, like Northpoint (which is not an ISP, but a wholesaler). Some ISPs are CLECs because they want reciprocal compensation for terminating calls. But there is nothing compelling ISPs to register as CLECs, nor is there any regulatory body that can claim any dominion over ISPs to any greater extent than any other business. What that means is that no precedent is being set here w.r.t. ISPs.

  7. Abrupt? Yeah right. by Manuka · · Score: 2

    Anybody who didn't see northpoint going under 3 months ago and take appropriate action deserves what they got. Jato suffered the same fate. It was pretty clear several months out that they were becoming a FC.

    1. Re:Abrupt? Yeah right. by rudedog · · Score: 2

      Anybody who didn't see northpoint going under 3 months ago and take appropriate action deserves what they got.

      What if you were unaware that you even needed to take action? As I mentioned in another post, my own company got fscked by Northpoint. Our DSL contract was with Concentric, and the bills came from Concentric. They never bothered to tell us that they had subcontracted our DSL out to Northpoint. We found that out on Thursday evening when the DSL went away and we called Concentric technical support to find out why.

  8. Re:Unfortunatly, there realy is no more Northpoint by unitron · · Score: 2

    Just think of Ayn Rand's stuff as comic books on the wrong end of the 1 picture = 1000 words equation.

    --

    I see even classic Slashdot is now pretty much unusable on dial up anymore.

  9. Re:ISP Regulations and the Future by unitron · · Score: 2

    Could we then use the Freedom of Information Act to sue for access to MS code, along with other eveidence of atrocities?

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    I see even classic Slashdot is now pretty much unusable on dial up anymore.

  10. Re:AT&T, not NP is shutting down the network by unitron · · Score: 2

    Does AT&T have any cable television operations, including cable modem service, going on in any of the affected areas?

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    I see even classic Slashdot is now pretty much unusable on dial up anymore.

  11. Re:ISP Regulations and the Future by unitron · · Score: 2

    It's really spelled "evidence". April Fool.

    --

    I see even classic Slashdot is now pretty much unusable on dial up anymore.

  12. Re:Unfortunatly, there realy is no more Northpoint by JanneM · · Score: 2

    Disclaimer: IANAL, IANAAC, IDKWITA, but here goes:

    Since there seems to be a law requiring them to give thirty days notice, it is entirely possible that the state will pay the operating cost for the next thirty days -- money which will in turn be pulled in from the bankruptcy proceedings. I believe the order of importance during a bankruptcy is the government, primary creditors (like banks, lawyers and accountants), secondary creditors (you and me), then the owners (fat chance). This means that they would be fairly sure of getting their money back.

    /Janne

    --
    Trust the Computer. The Computer is your friend.
  13. Business Ethics by Detritus · · Score: 2
    They knew what the rules were when they sold DSL service in California. Is it too much to expect them to abide by the laws and regulations of California?

    A responsible business executive shuts down the business in an orderly fashion before all of the assets are gone.

    --
    Mea navis aericumbens anguillis abundat
  14. And in other news.. by Aphelion · · Score: 4

    SAN FRANCISCO (AP) -- California regulators Friday ordered NorthPoint Communications Inc.'s remaining five employees to upkeep the major internet service provider's operatons and swindle its service providers out of monetary obligations for another 30 days.

    One anonymous official said: "I don't see how a company going bankrupt has anything to do with its service being suspended. This shouldn't happen."

    It remained unclear, however, how exactly operations would be upkept, as the majority of Northpoint's staff has been laid off, and its bills have remained unpaid for over a month. Regulators say they will not pay Northpoint's bills but expect them to provide service anyway.

    1. Re:And in other news.. by uncleFester · · Score: 2

      SAN FRANCISCO (AP)

      Methinks California has more important issues than forcing NorthPoint to stay open..

      of course, they could solve the issue by powering down the state from time to time.. oh.. waitaminute.. nevermind.

      --
      -'fester
  15. What about the bill? by Xerithane · · Score: 2
    The bankers and lawyers working to get NorthPoint to stay online. So they can transfer service, seems legit enough but is this going to cost AT&T money?

    This doesnt quite seem right, all of their assetts have been auctioned to AT&T for $135M. They have filed bankruptcy and are going through that process. Where is the money going to come from to stay alive for the next month?

    More reasons to go with Pac Bell.. After my first DSL bankruptcy fiasco I'm just sticking with the company that made a pact with the devil to stay in business. It's no coincidence their address is 666 Howard St, San Francisco..

    --
    Dacels Jewelers can't be trusted.
    1. Re:What about the bill? by metis · · Score: 2

      You just said it. The shareholders sold the company before honoring their liabilities. If the regulators' legal advice is sound, I assume AT&T bought something that the shareholders have no right to sell. What happens is the same thing as when you sell someone your house that has been
      under lien to the IRS. The guy who bought it is a fool. isn't 135M enough to maintain service for 30 days?

      --
      -- look, cheese ahoy!
  16. So why can't CPUC just order PacBell to ... by Skapare · · Score: 2

    So why can't CPUC just order PacBell to hook up the NP customers who sign up for the service in 5 days instead of 7 weeks.

    Can pigs fly? Only if CPUC orders them to.

    --
    now we need to go OSS in diesel cars
  17. Reflex by PenguinX · · Score: 2

    Same shit happened to me on thursday - my ISP (Reflex Communications) filed for Chapter 7 bankrupcy and just dissapeared. Unfortunately they did happen to hold a record for a few domain names etc. More or less was a pain in the ass for me to deal with =(

  18. Re:Signs of signs by mindstrm · · Score: 2

    Which province is that?

  19. Re:Time for state-owned providers? by uncleFester · · Score: 2

    Maybe it's time to consider state owned and run high-speed internet providers.

    No.

    No way.

    No fucking way in hell.

    Take a good long look at your state government, federal government, various departments such as transportation, bureau of motor vehicles, welfare, taxation, etc.. look at how those departments actually run.. then take your meds and come back and say that again.

    If it was left to the government, we'd just now be getting those new kickass 4800bps modems. And you would probably be paying $0.01/packet tax to boot.

    --
    -'fester
  20. Unfortunatly, there realy is no more Northpoint by jcarl · · Score: 4

    According to http://biz.yahoo.com/apf/010330/northpoint_closure _2.html, there doesnt seem to be anyone left to turn on the lights. the remnants of what was NP only exist to continue a $1B suit againt Verizon.

    1. Re:Unfortunatly, there realy is no more Northpoint by scoove · · Score: 2

      Fountainhead... Gary Cooper reads his way thru the script, and Patricia Neal does a pretty good job.

      *scoove*

    2. Re:Unfortunatly, there realy is no more Northpoint by scoove · · Score: 4

      How dare those Northpoint employees leave their jobs without taking care of the customers. So what if there's no money left for payroll - serves them right for running such a crummy company.

      While we're at it, let's get that sock puppet back on TV and start pumping out the pet goodies retailing at 50% of cost. Consumers have a right to underpriced goods - it's the Priceline way! (you knew it was only time until Shatner ran for Gov!)

      And if Nevada and Oregon don't want to continue to provide Californians energy at the price Californians named, then what are those National Guard folks doing sitting around? Fire up the tanks, we've got a green economy to fuel!!!

      And I thought there weren't any plans to make Atlas Shrugged into a movie...

      *scoove*

  21. Busy Pencil Pushers by QuantumG · · Score: 4

    Man.. you would figure the California public utilities commission would have enough on it's plate at the moment! "Damn, my ISP just went down.. guess that UPS I bought wasn't the only thing I needed to do to guarentee my 24hr/day mp3 snarfing abilities."

    --
    How we know is more important than what we know.
  22. Re:Time for state-owned providers? by Minupla · · Score: 3

    *sits down at the fire, puts his cane down*

    Why, I remember waaay back when the state *did* run the internet. Let's see, it must have been what, 10 years ago. It was an aweful mess. I mean where would we be without the lovely corporations like AOL, Network Solutions, @Home? They are just so much more productive then the National Science Foundation (or for us Canadians, BCNet, OntNet, etc.) Oh yes, thank the gods that now when something goes wrong, I have to track down the little local ISP that owns the domain, find out that they no longer own the domain, but that noone remembered to update the technical contact, or worse get a "Sorry the number you have reached is out of service".

    Seriously, having worked professionally in both environments, I found the old regulated system to be much easier on the nerves. Most of the people running them were at least competent, if not outstanding, since there wasn't 100 companies competing for their services. You knew when you called the CAnet NOC that you were gonna get someone with a clue. When was the last time you tried to find someone with a clue in @home land to deal with something like a BGP peering problem?

    Minupla
    --
    Remove the rocks to send email

    --
    On the whole, I find that I prefer Slashdot posts to twitter ones because I don't get limited to 140 chars before
  23. Telocity recovers... by LinuxParanoid · · Score: 2

    Well, perhaps my expectations have dropped too low given problems I've had in the past, but I was pleasantly surprised to find that Telocity (my ISP on top of Northpoint) had, within 3 days, managed to get a contract with a national dial-up provider so that customers like me could still get on the 'net. Unlimited dial-up, no extra charge and they aren't charging us until they get DSL back up. Good thing, too, since my backup dialup access method only provides 10 hrs/month without those pesky hourly fees...

    They say they'll have another DSL carrier for us in 3 weeks or so.

    --LP

  24. Who's going to pay for it? by Geek+Dash+Boy · · Score: 2
    seems like that's a rather expensive undertaking, relighting a network. I don't think there's just some big Frankenstein-like switch that can be thrown.

    "No, it's I-gor."

    --
    I say we take off and nuke the entire site from orbit. It's the only way to be sure.
  25. Please regulate them by xant · · Score: 3

    The more regulation, the more chance the ISPs will be awarded common carrier status. Which means they can't be told to shut down a user because of what he's posting, and the spinelessness of ISPs will cease to be a barrier to free spech on the Internet. If the user paid, he gets his 'net time.
    --

    --
    It's rare that you're presented with a knob whose only two positions are Make History and Flee Your Glorious Destiny.
  26. Re:Turning Point in History? by cybermage · · Score: 5

    When ISP service becomes a legal right instead of a luxury service, I think it's safe to say that the Internet has taken its place as a fundamental part of life in society.

    Ahhh... but at what cost? Everything in life, down to the basic elements of Earth, Wind, Fire and Water are regulated by goverments both local and national.

    If the government now sees Internet access as a right, God help us. You see, each government, from the smallest local one, to the U.N. believe they are legislating to the benefit of their constituents, but clearly they don't all share the same ideology. It will be impossible for businesses to comply with (or probably even be aware of) every regulation at every level of government in every place where they do business (thanks to the Internet.)

    Remember the story of Yahoo vs France over Nazi memorabilia. That's not even the tip of the iceberg. It's just a slight dip in the water temperature caused by a giant iceberg over the horizon.

    Never be happy that the government thinks something is fundamental or important. Nothing good can come of it.

    --

  27. Northpoint is a telco by Animats · · Score: 2
    Northpoint is regulated because Northpoint is a Competing Local Exchange Carrier, which is a form of telecommunications carrier. So the Public Utilities Commission has jurisdiction.

    Second, Northpoint filed for chapter 11 bankruptcy, which is "protection from creditors". That doesn't dissolve all obligations they have, it just means they can put off paying some bills for a while.

    So it's entirely appropriate for the CPUC to issue an order of the type they did.

  28. Alternatives by Da+Penguin · · Score: 2

    Why does everybody always have to make things so complicated? What's the point of ISPs, or those special internet connections anyway? This is my idea: get a lot of people to put special mirrors on their roofs, and act as relays while everybody shines lasers at them. Or, a more covert laser communication system is to give every person in the world a number. When you want to transmit that number to others all you do is shine a laser in the eye of the person with that number. They read about it, or see it somewhere and think "Oh, #9457438470 is blind, somebody is sending me the word the" Granted it would take a lot of time and people to send big MP3s or movies, but it would be worth it. Or if that does not work, just have really loud people yelling out the packets. But those can phones are still the best. Something else I'd like to say (offtopic, but don't hate me for this).
    Has anyone looked at the different languages supported by Google? By personal favorite is their made up language named "Bork, bork, bork!". Check out Google prefs in Bork,bork,bork for an example. This is my default now

  29. The courts are powerless by jailbrekr2 · · Score: 3

    Until high speed internet access is defined as an essential service (as it is in Canada), the courts cannot force a bankrupt company to rupture even more money and turn the network back on.

    Hmmmm. Yet another example of the dangers of de-regulation (or no regulation) of what is considered an essential service????? Haven't those silly Californians learned their lesson yet?

    --
    Feed The Need[goatse.cx]
    1. Re:The courts are powerless by metis · · Score: 2

      hmm. Interesting, how come the cities that kept their electicity under municipal control have been least affected by the shortage?

      And your view is also very scientific. A is a problem. You claim B is the solution. we try B and it makes things worse. Whose to blame? Anything but B.

      look at it another way. the claim: the government failed to deregulate in the 'right' way. Why we want the government to deregulate? Because the government is a bad manager. So if good deregulation depends on good management of the deregulation process, and if we assume that government is not capable of good management, and if we assume that bad deregulation is worse than regulation ( we now know that de facto, both California and on a bigger scale Russia prove it), shouldn't we advice government not to deregulate under such risks? So why did the economists come out with the opposite advice? Maybe because they weren't concerned about what is good for Californians but about what is good for the energy companies that fill their pockets to make them sing in the right key.

      --
      -- look, cheese ahoy!
    2. Re:The courts are powerless by metis · · Score: 2
      sorry, a botched deregulation is a deregulation, just as a botched open heart surgery is an open heart surgery.

      When you recommend a treatment, you must factor in the risk of failure, if you are honest.

      You may have had a point if the deregulation in California had been carried out by some tongue in cheek socialist. It wasn't. It was designed and carried out by a cohort of republican and "new democrat" politicians, business officials, and economists. They botched it, and now they say, "this is not what we meant by deregulation". Sounds like whining to me.

      Besides, sciencific theories can be proven wrong. The theory that deregulation is always good for consumers seems like a theory that cannot be possibly proven wrong, because, every time deregulation fails, it isn't "really" deregulation ( see, Russia, California, etc.) Show me one example of a real failed deregulation that should not have been attempted and I will take you more seriously.

      --
      -- look, cheese ahoy!
  30. The PUC actually has power... by ravi_n · · Score: 2

    One thing that the article left out is that the CPUC actually has some power in this (their gesture is not entirely symbolic at this point). If the CPUC is unhappy they can refuse to approve the transfer of Northpoint's assets (see a copy of the CPUC's ruling at dslreports.com). This would, naturally, be a significant roadblock in the AT&T deal, which is the only thing that will let Northpoint's creditors even see pennies on the dollar. So, if the CPUC holds firm, some amount of justice will be done. Read the dslreports.com coverage of the negotiations between the ISPs and Northpoint to fund a more orderly transition. The reason it did not happen is that the bankers and other creditors of Northpoint got greedy. They wanted to take lots of the ISPs' money without giving any guarantees about the level or length of service they would provide for a transition.

    1. Re:The PUC actually has power... by FirstOne · · Score: 2

      Actually, They have no powers one a firm files for bankruptcy protection in federal court.

      All the power is in the hands of the federal bankruptcy judge/trustee. CPUC can pass all the votes if wants, they are non-binding, the judge decides all issues. He also has the power to void almost any government regulation and modify the terms of almost any existing contracts. Unfortunately this means Northpoint's DSL services will most likely remain shutdown.

  31. ISP Regulations and the Future by Alien54 · · Score: 3
    Let me look at this. The idea of regulating ISPs etc presents the possibilities for certain legal precedants

    Question: under the .NET program, would Microsoft be an ISP and/or similar service provider?

    If MS becomes wildly successful with the .NET initive, and if it is a monopoly as ruled in court, does this legal action open the door to the government takeover of Microsoft down the road, in the Public interest, since they are a monopoly, since they will have made themselves essential to the welfare of America?

    [Insert Fantasy sequence] And further, under such a take over, could they regulate the quality of code? such as making it some sort of criminal offense to write code with an excessive number of bugs. - think of it - microsoft code being reviewed and managed like they do it for the Space Shuttle. (see original story here.)

    Check out the Vinny the Vampire comic strip

    --
    "It is a greater offense to steal men's labor, than their clothes"
  32. Wow by logiceight · · Score: 5

    I am currently with covad but I am not worried about them becoming bankrupt becau

    DSL service terminated

  33. Signs of signs by yoink! · · Score: 2

    I think we're beginning to see the reality that is becomming apparent. As web access and online services, businesses, and communities, begin to flourish, we are becomming increasingly dependant on providers. Schools all have access to the web, and my own provincial government is spending $1000 CND on each family to help them get a computer and online.

    But if we are going to make access to the web available to all, under certain conditions, we don't want to have it regulated right? Well, I think that's becomming less and less of a possibility. Just as governments control radio and television, it seems that the only way to gurantee the infrastructure related to high-bandwidth connections at home is to have the industry responsible to a body of some sort. Now the industry can't exactly police itself can it? Does it need policing at all? The questions will only come in time.

    I think I thought I thought I think.


    yoink

  34. Only four elements? by tswinzig · · Score: 2

    Everything in life, down to the basic elements of Earth, Wind, Fire and Water are regulated by goverments both local and national.

    But what about Ether?

    --

    "And like that ... he's gone."
  35. You can't sue a dead carcass. by AFCArchvile · · Score: 2
    personally, I expect to see a lot of lawsuits aimed at Northpoint, the ISPs, and anyone else within reach over Northpoint's abrupt shutdown.

    And all of those lawsuits will end up with the plaintiffs getting nothing, because NorthPoint is pretty much bankrupt. How much? I quote from a former NorthPoint employee's comments to DSLReports.com:

    "Somehow NorthPoint officials decided that they are NOT going to pay employees any vacation balances exceeding 25 hours. That's right, three days!!! No severance package of any kind. This is the thanks one gets after their hard work and dedication for the past two years. But somehow in the midst of all this, [NorthPoint CEO] Liz Fetter still manages to receive a $45,000 bonus tomorrow."

    NorthPoint will use up the remainder of their money to pay Liz Fetter. No severance to former employees, and no possible settlements or payouts as a result of filed lawsuits.

    --
    "Ancillary does not mean you get to rule the world." --U.S. Circuit Judge Harry Edwards, speaking to the FCC's lawyer
  36. Bandwidth as a utility by aethera · · Score: 5
    The most interesting precedent I see being set here is that this decision is coming down from a utilities commision. In most cases I don't think the government can or should be able to force a company to stay in business, but utilites, like phone, electric and water are a notable exception. These businesses can't just shut off services because what they provide is so necessary to basic needs.

    It is really interesting to see this same idea being equated with ISPs. If anything, it shows how important and and integral part of our lives the internet has become. So in this case, I agree with the State of California. Northpoint provides a valuable service that is a necessary part of economic survival for many businesses. They can't just pull the plug.

    Of course, a similar situation has occurred in the past when the government has forced striking workers back to work, or that failing, manned their positions with soldiers. Sergeant Sys Admin anyone?

  37. Re:Time for state-owned providers? Um. No. by CathodeJack · · Score: 2

    State Owned Industry == Communism

    State Run Industry == Fascism

    This is true. Look it up. And we all know about the success histories of both forms of government.

    Like some others here, I used to work in government contracting. What a nightmare that was. It was definately "Your Tax Dollars at Play". And with our government, your tax dollars like to play Dodgeball. On one contract, we were required to partner with one of our competitors because they qualified as a "small business" and we did not. They had almost a hundred employees. There were only eight of us. We had to split the budget 50 / 50, but we were expected to do all the manufacturing while they "managed" the project. By the time we worked out all the contract terms and budgeting stupidity (and paid a lot of money to the lawyers), we only had two months left of the original twelve to actually complete the contract and only a third of the original budget.

    When a private company performs badly, you can allways take your business elsewhere or start your own company to do things properly. It can be very difficult and messy if you try to do the same thing with government.

  38. Time for state-owned providers? by terri+rolle · · Score: 2

    This order only affects Northpoint's California customers. Unfortunately, they had about sixty thousand customers outside of California (mostly in New York, Massachusetts, Texas, and Illinois). Those people are out of luck.

    Maybe it's time to consider state owned and run high-speed internet providers. Increasingly, it looks like private enterprise is unable to meet the needs of the public for reliable high-speed connectivity, especially in less populated areas of the country. The way things have been going recently, the only way a substantial portion of the population is going to get dependable broadband is if the government steps in and provides it.