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Telcos Want Big Subsidies, Not Line-Sharing

It seems that a recent survey of global broadband practices by Harvard's Berkman Center at the behest of the FCC has stirred the telecommunications hornet's nest. Both AT&T and Verizon are up in arms about some of the conclusions (except the ones that suggest offering large direct public subsidies). "Harvard's Berkman Center study of global broadband practices, produced at the FCC's request, is an 'embarrassingly slanted econometric analysis that violates professional statistical standards and is insufficiently reliable to provide meaningful guidance,' declares AT&T. The study does nothing but promote the lead author's 'own extreme views,' warns a response from Verizon Wireless. Most importantly, it 'should not be relied upon by the FCC in formulating a National Broadband Plan,' concludes the United States Telecom Association. Reviewing the slew of criticisms, Berkman's blog wryly notes that the report seems to have been 'a mini stimulus act for telecommunications lawyers and consultants.'"

11 of 340 comments (clear)

  1. We paid for the lines. Share them or get off. by Kenja · · Score: 5, Informative

    In most cases, the "lines" (optical etc) are paid for with tax payer dollars. If the telecos cant play nice, we're just going to have to take our toys and go home.

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    1. Re:We paid for the lines. Share them or get off. by anagama · · Score: 3, Informative

      The small minority of mega-wealthy organizations obviously. It is a well known fact that people are too stupid and will think crazy thoughts like "cheaper and faster" is better than "slower and pricey". With enough lobbyists and indirect bribery, AT&T, Verizon, and its ilk are able to make sure we don't harm ourselves by getting better service for lower costs.

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  2. Re:I see what they did there... by Nadaka · · Score: 5, Informative

    The internet industry was already given tax money to implement infrastructure once. That money was distributed to shareholders as profit. And since there was no punishment clause, they never had to implement the infrastructure that they agreed to.

  3. No problem, give them all the subsidies they want by Anonymous Coward · · Score: 5, Informative

    Just require companies taking subsidies to cap wages including top executives at 100K a year and bonuses at 5K a year. They'll squeal like pigs and no one will touch the subsidies. Something similar happened with the bailout money. When there were no strings attached everyone wanted their share. Once they started insisting on wage caps suddenly no one needed the money.

  4. Linesharing by Anonymous Coward · · Score: 5, Informative

    At least here in Finland line-sharing did wonders to consumers. It lowered prices and allowed small companies the possibility to offer broadband with completely different business models. Competition also forced the big ones to improve customer service quality. I can't think of any downsides for the customer.

  5. Re:No problem, give them all the subsidies they wa by Big+Boss · · Score: 4, Informative

    Yup. Plenty of small companies would be willing to do it though. Hell, if the govt wants to pay for the fiber and install, I'll start a small company to manage it and happily take $105K/year to do so. And I'll run it with an open access policy.

  6. Re:Attn: Telcos by Hatta · · Score: 5, Informative

    The taxpayer gave you Millions if not Billions back in the 90's for infrastructure upgrades

    That's over 200 billion.

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  7. Re:I see what they did there... by Rycross · · Score: 4, Informative

    No, he was referring to the Emergency Economic Stabilization Act of 2008, totaling $700 billion in "stimulus," signed into law by President Bush.

  8. Re:I see what they did there... by The+Cisco+Kid · · Score: 4, Informative

    Actually, the "telephone industry" was given money, not the "(I)nternet industry".

  9. Re:I see what they did there... by jo_ham · · Score: 4, Informative

    No, it's actual stimulus cash signed into law by GWB, totalling something like $700B - Obama was not the president, when president GWB signed this stimulus money into law.

    http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008

  10. Re:I see what they did there... by Comboman · · Score: 4, Informative

    He wasn't president at the time, but he was a senator and he did vote in favor of it.

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