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Verizon-Pushed WiFi Bill Becomes Law in PA

Cryofan writes "A Wall Street Journal article (via freepress) tells the sad tale of how legislation barring PA municipalities from offering paid telecom services was signed into law. 'Pennsylvania Gov. Edward G. Rendell said late Tuesday night that he had signed into law a large telecommunications bill placing severe restrictions on the ability of cities and towns to offer telecommunications services, an item that was heavily lobbied by Verizon Communications Inc. and other big telephone companies in similar legislation across the country.'" (Also mentioned last week.)

23 of 397 comments (clear)

  1. Re:FCC regulation? by Wesley+Felter · · Score: 3, Informative

    The PA state government can regulate PA city governments. The airwaves don't come into it.

  2. Big Ed by Doc+Ruby · · Score: 3, Insightful

    How does Governor Ed Rendell spin this bill on behalf of his Pennsylvania constutents? Since he anticipates Verizon waiving its right to stop local competition, and likes a "lucrative provision giving phone companies like Verizon large incentives to promise to modernize their networks", he'll just tell Pennsylvanians that if they bribed him as well as Verizon, they might get him to answer their calls, too.

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    make install -not war

    1. Re:Big Ed by Doc+Ruby · · Score: 5, Interesting

      You sure are naive about telecom. The tariff lets all the "competitors" avoid competing on new features, by specifying all the features and their prices. It also prices starting new telcos in the $BILLIONS, keeping out any new competition. When something new comes along, like DSL, they tweak the tariff to kill new competitors, like they did with DSL. The only orgs foolhardy enough to start competing with telcos on something disruptive like WiFi are local governments, and now they're slapped down (at least in Pennsylvania). Even though the limited bandwidth of WiFi in a given area makes it most effective for municipal communications, like emergency services, sanitation and other state communications. If Verizon were able to compete, it would let towns and cities educate the market with WiFi, while rolling out WiMax or even (gasp) 3G, or maybe even finishing the phased-array tech that effectively unlimits bandwidth spectrum constraints (never). A competitive telco would actually see the lengths to which cities and towns are going to get wireless coverage, and *sell it to them*. Instead, they've just outlawed any possible competitive motivation to deliver this hotly desired service to their market. So no one gets it. And they've got legions of people hooting about "the market" when no such dynamic exists in this industry. I'm glad you're satisfied with your wired status quo.

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      make install -not war

  3. Skill OK for non-govt. groups by btrapp · · Score: 5, Informative

    The title of the article is a little misleading - while the ruling does bar municipalities creating their own networks, this does not stop private groups of citizens from creating municipal networks.

    So a motivated group of citizens can still create a city wide wireless network, it's just the local governments that can't. (I wonder if the govt. can give grants to the citizens... that'd be a nice work-around)

  4. Exception made for Philadelphia by trickofperspective · · Score: 5, Informative

    It should be noted that Philadelphia made a deal with Verizon that will allow it to go forward with their original city-wide WiFi rollout despite this law.

    ~Trick

    1. Re:Exception made for Philadelphia by toxic666 · · Score: 3, Interesting

      As a resident of the Commonwealth, I once again take my shoes off to our elected officials willingness to tax us directly and indirectly to subsidize Verizon. Remeber the sweetheart, multi-billion dolar tax breaks they got to roll out high-speed (10's og Mbit/s) broadband, then stuck us with DSL?

      http://www.newnetworks.com/Libertybellstolen.htm

      Sheesh! Pennsylvania (aka Pennsyltucky) is Philly and Pittsburg with Alabama in between. If you've ever seen our legislature in session, the bib overalls might clue you in as to how technically savvy those guys are.

      Even my own rep. LOVES Verizon. I attended a breakfast Q&A he held, and asked about the Broadband deal and why the legislature amended the requirements for Verizon at MY expense. He got pissed and started bitching to the masses about how he gets all sorts of mail critical of Verizon, but he thinks they are just great. He also "explained" that it would have cost Verizon huge amounts of money to roll out fiber to rural and mountainous areas that don't need it.

      So, I asked what the taxpayers got for all that money because Verizon just provided DSL over existing copper. Next question, please!

  5. Play-by-Play by ackthpt · · Score: 5, Insightful
    as quoted from the Pay-Per-View Avarice Hour of Power

    Gov. Rendell: This bill is a piece of crap.
    Minion of Telecoms: We're rich
    Gov. Rendell: I cannot be bribed!
    Minion of Telecoms: Oh, we wouldn't dream of it!
    Gov. Rendell: Good to hear it, I'll just veto this sucker.
    Minion of Telecoms: We'll direct our considerable influence to your opponent in the next gubenatorial election.
    Gov. Rendell: ... ah yes, there's the line I sign on scrit-scrit-scrizzitz-scrit-scrut
    Minion of Telecoms: Good boy, here's a dog biscuit.
    --

    A feeling of having made the same mistake before: Deja Foobar
  6. Re:Quite right, it's anti competitive & monopo by Anonymous Coward · · Score: 5, Interesting

    Yes,

    Well, before wireless, it was wired. In 1995, the State of Texas passed a bill that prevented the City of Austin from string fiber optic between its high-schools, libraries, fire stations, police stations, and power substations.

    Seems that Southwestern Bell though it mighty uncompetitive of the City of Austin to replace old crappy 9600 baud modems with something that would be faster *and* cheaper! Of course, the Texas Leg voted was anti-people back then too.

  7. Typical by nunya_bizns · · Score: 4, Informative

    This is typical of Pennsylvania's legislature to bendover backwards in favor of Verizon.

    Verizon struck a landmark deal with the state of Pennsylvania to provide 45MB/s Symmetrical Fiber to the entire state. Verizon recieved over $2 Billion from Pennsylvania but Verizon did not come close to meeting its agreement - wire 50% of PA with 45MB/s Symmetrical Fiber by the end of 2004. The state allowed Verizon to completely ignore the original agreement and keep all the financial incentives. http://www.broadbandreports.com/shownews/30544

  8. Would you have phone service now...? by grahamsz · · Score: 3, Interesting

    Unless you live in a major metro area, the chances of you having wired phone access would be even lower than your chances of cell access if it hadn't been for the government putting down the cash to install a phone network.

    I don't mind the private sector but i do think that broadband providers should have to do an all or nothing approach. Making sure that all their customers have DSL availability.

  9. Re:I see Verizon's point of view... by chris_mahan · · Score: 5, Insightful

    Oh my God you are so right!

    I can't believe the government is funding public libraries, they're taking money from commercial bookstores. Like, OmiGod! And the streets! Woah, they should let go of city maintenance and allow the commercial road surfacing companies to fill in the potholes on the street... But wait, there's more! Why is the police allowed to operate, don't they know that they're taking money away from commercial security providers? Heck why do we have cities to begin with, we could just outsource everything to India...

    Wait...

    I'm dashing off to the patent office with a big grin on my face...

    --

    "Piter, too, is dead."

  10. Isn't It Obvious? by PenchantToLurk · · Score: 3, Insightful

    I can hear the conversation now:

    VZ: Wi-Fi for every citizen, what a great Idea!
    PA: Yeah, we're going to give it away to attract
    a modern crowd.
    VZ: Oh, yeah, the billions in infrastructure that
    we put into your state, the jobs, tax revenue,
    all that stuff, you still want that don't you? ..etc...

    It's not necessarily 'selling out', or 'paid off politicians', just legit local politics. States and towns have been whoring to business forever, in various incarnations. In the poli minds, it's better to have positive corporate presence than a few towns with wi-fi. Especially since the assets will be trash in 10 years, as wireless high-speed internet supplants it, delivered by none other than VZ.

  11. Why did I bother voting? by Facekhan · · Score: 3, Insightful

    Is there even a reason we vote anymore. I think I am about to become a principled non-voter based on the fact that our government is now so corrupt we only help legitimize it by voting. I think I will start a public ad drive next election cycle to encourage people not to vote with the goal of keeping the voting population below 50% and therefore keep our government illegitimate.

    Its not so much like this is a bad law so much as corporations really have taken over (in place of the big churches) because they pay almost no taxes (because they know how to work the system) and they are both considered persons under the law regarding free expression but also act as a shield by their owners and executives through which great personal wealth can be created with no personal responsibility.

    Lets face it. The BOD of Verizon or Haliburton could order me killed tommorrow and they would probably never even be charged. So much for a system of laws.

  12. Our politicians are bought and paid for.... by bill · · Score: 4, Informative
    http://www.philly.com/mld/philly/news/5009141.htm'

    Big donors power governor's big dance
    By John Sullivan and Rose Ciotta
    Inquirer Staff Writers

    Gov. Rendell raised more than $2.5 million from about 200 private donors for his inaugural bash, with much of the money flowing from corporations, trade unions, lawyers and professional associations.

    Contributors to the big party included many who gave heavily to Rendell's campaign for governor, some who supported his opponents, and others who have earned millions of dollars from state contracts.

    There were five categories of donors, with the highest, an elite list of 15, paying $50,000 each to earn "benefactor" status.

    Some of the top corporate donors included Comcast, Unisys, Verizon and SAP Public Services.

    Organizers of the event, which was estimated to cost more than $3 million, said donors did not earn special access to Rendell. [HAHAHA! yeah, right.]

  13. Re:FCC regulation? by Anonymous Coward · · Score: 3, Insightful

    You mean just keep on giving Verizon my tax dollars in the form of gov't subsidies so that they can continue not delivering on their promises of expanding broadband coverage in Pennsyvania and just pocket my money in the end anyway. Thanks but I've seen Verizon in action...

  14. What? by Renraku · · Score: 4, Insightful

    What does it fucking matter?

    I mean, the trend is leaning more and more corporate every year. When is voting going to become a show when what really matters is corporate backing? Oh wait, its half way there already.

    Don't like what your customers are doing with your products? Write a law against them, push it through the court. Soon, your opposition is arrested or forced to stop doing what you don't like.

    Don't like another business? Write a law against them, push it through the court. Soon, your opposition is arrested or forced out of business.

    --
    Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
  15. Re:Ahhh, the essence of Capitalism... by kwiqsilver · · Score: 5, Insightful

    That's not competition, that's a tax-funded program. How is verizon (or any other carrier) supposed to compete against that? Verizon can't take the money from you against your will, like the government can. Verizon can't force you to be a customer.

    And when the big corporations lobby for preferential legislation (which they do frequently), it's not capitalism, it's socialism. In capitalism the government can't hinder or support any private entity: their fates are left to the market to decide.

  16. Re:FCC regulation? by nametaken · · Score: 4, Informative


    Apologize for responding to my own post, but I found the WSJ article I was reading the other day...

    "The telecom companies argue that it is unfair for them to have to compete against the government. They say that the legislation enables them to improve service to their customers by investing in their networks. "If we put that money at risk, and here comes government to compete against us, with advantages that government has -- not paying taxes, access to capital at good rates ... that severely limits the opportunity and limits our interest in taking the risk," says Eric Rabe, a spokesman for Verizon."

    I guess they kinda have a point.

  17. What the fuck? by wurp · · Score: 3, Insightful

    The city of Philadelphia made a deal with Verizon to let them break new PA communication laws?

    Can I make a deal with Smith & Wesson to legally shoot the people who made those laws?

    More seriously - if this is a law generally governing how the government can (or can't) compete with commercial wireless services, how the hell can one company give the city the OK to break the law? If the law is actually written to prevent competition with Verizon specifically, how can PA citizens not be rebelling?

  18. Re:Anti-Trust Possible? by dgatwood · · Score: 4, Interesting
    I don't think you mean commodity. I think you mean an essential service. If those services were a commodity, there would be ample competition in the market. However, unnatural forces (monopolies on wirers on the poles, limited demand, high cost to enter the market) make that not the case. That's why the government should step in. A hundred companies selling cellular service or broadband results in a reasonable level of competition. A half dozen does not. In most areas, there are less than that.

    As a service becomes fundamentally essential to the equality of the people, it must either become so inexpensive that it is affordable by all (e.g. the commoditization of the industry through a huge number of players) or it must become socialized. If one of these two things doesn't happen, it will, over time, result in the gap between the haves and the have-nots becoming progressively larger and the gradual erosion of the middle class.

    While "equality at all costs" is not a virtue, equality in at least the basic requirements to function in a modern society is a necessity.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  19. Re:FCC regulation? by ScrewMaster · · Score: 3, Interesting

    Yes, well ... on the other hand you have to consider the source. Verizon isn't exactly a shining example of enlightened capitalism in action, you know.

    The irony in all of this is that for nearly a century the phone company was a legal monopoly established and regulated by the Federal Government. Congress was correct in their initial assumptions that a. the private sector was better suited to the task from an efficiency perspective and b. the established provider would need careful regulation and monitoring, with appropriate quality-of-service standards. Whatever else you want to say about the old Ma Bell ... the phones worked. America had one of the most reliable telephone systems on the planet. Then, "in the interests of the consumer" that government-granted monopoly was suddenly deemed "bad", and was broken up into the parent AT&T and the various RBOCs (Regional Bell Operating Companies) and largely deregulated. Granted, Ma Bell had maintained iron control of the whole network (that was the law), but they could have been required to relax some of that control (for example, allowing third-party terminal equipment) rather than a break up of the company. It's not as if AT&T was an illegal monopoly, like oh, I don't know, Microsoft ... the Feds PUT them there in the first place!

    Be that as it many, we now have a private telecom provider, Verizon, coming back and convincing the government (albeit a state one, but the precedent has been set) that said government has no interest in providing a modern telecommunications service. It was the government that originally made phone service available to all, and required that it be priced at a level that wouldn't leave anyone out in the cold.

    What's worse, given the way the RBOCs have been consolidating lately, it looks like we're heading back to the days of a monopolized telephone system, but without the kind of oversight that such a system really needs. The idea of tax dollars being used to support something as critical to our lives and economy as telecommunications isn't really problematic: all governments spend our money on far less useful things every day. If Verizon can't take the competition they should just find some other industry to monopolize, rather than getting laws custom-written to eliminate that competition. They've taken a page out of the MPAA's book it seems, and frankly I'm sick of that kind of behavior.

    --
    The higher the technology, the sharper that two-edged sword.
  20. No, they don't. by Civil_Disobedient · · Score: 4, Interesting

    I guess they kinda have a point.

    Bullshit. Coca-Cola could make the same argument about the government interfering with their ability to make a profit of Disanti water because, shucks, the public water utilities are hurting their ability to compete.

    Communications, in this day and age, are as vital a resource as water and transportation. Leaving it in the hands of a few private organizations to implement when and where they see fit (e.g., when and where they can make a profit) is, to put it blundly, bullshit.

  21. Re:Ahhh, the essence of Capitalism... by krbvroc1 · · Score: 4, Insightful

    That's not competition, that's a tax-funded program. How is verizon (or any other carrier) supposed to compete against that? Verizon can't take the money from you against your will, like the government can. Verizon can't force you to be a customer.

    Have you lost sight of the fact that Verizon is just not some private sector company? The government(s) have given the phone company MONOPOLY status. This same Verizon has done everything in its lobbying power to prevent other private companies from competing with them. I think there is a pretty long history that demonstrates Verizon has no interest in serving the public in a broad approach; they just want to skim the 'cheaper to service' customers. The PA initiative is visionary--like rural electrification. It realizes, to use the words of the business person, that in order to be competitive in todays global enconomy in an information age, residents of the city need to be part of the information haves, not have nots.

    Remember that Verizon fought tooth and nail in the states it 'serves' to prevent ISDN (and later DSL) from being considering a non-discretionary service subject to public utility regulation which I think would have resulted in much broader roll-out. Now that a city realizes that Verizon has no plans to roll out service to everyone, they want to provide it themselves as an infrastructure.

    Philly is just trying to be competitive. Its just like how cities/states give tax incentives for people to move their businesses there.

    The monolopy Verizon has is absurd. Here in Maryland, a long time ago, Verizon upgraded from analog to digital switches (SS7). The cost of that upgrade was allowed to be pass on to the rate payer with promises of new digital features for POTS and ISDN capability. Despite the ratepayer paying for the SS7 infrastructue, Verizon started charging outrageous fees ($3.50 for Caller ID per month, etc) for software capabilities we had to pay for. Verizon has no real interest in serving all the people in Philly--they would much rather implement 'caller ringtones' that they can charge $2 bucks a month for. I wish I had a money machine like that.