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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.'"

80 of 340 comments (clear)

  1. I see what they did there... by EndlessNameless · · Score: 4, Interesting

    Free money, no mandates. This sounds like the initial Bush stimulus package, so it's entirely without precedent.

    If their development is going to be subsidized with federal funds, they damn well better open those lines. And they should be required to meet coverage quotas if they want any of those rural development funds.

    --

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    According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
    1. 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.

    2. Re:I see what they did there... by Zerth · · Score: 5, Interesting

      We already did that once and I've got relatives that still only get 9600 on dialup, no chance at DSL, and they live in a town with 1200+ people/sq mi, if only 10,000 or so people.

      They'll take the money, kick out a fat dividend, and then spin off a paper company with the responsibilities, destined to fold.

    3. 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.

    4. 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".

    5. Re:I see what they did there... by mcgrew · · Score: 5, Insightful

      The Bush administration gave this welfare to the telcos, not the Obama administration. The telcos are trying to get more corporate welfare from Obama. Blame Obama for giving my tax money to the telcos when he actually does it, not when the telcos are standing on the corner with a cardboard sign that reads "will lobby for cash".

      For Christ's sake, man, open your eyes. Bush was a disaster for this country; indeed, for the entire world -- for everyone but the corporates and the uber-rich.

    6. Re:I see what they did there... by commodore64_love · · Score: 2, Interesting

      You misspoke. I'm a conservative. I'm against all forms of welfare for all people, except as a last-ditch safety net (i.e. you lose your job; you get unemployment funds).

      You know a lot of the problems with our internet would be solved simply by revoking ALL monopolies that Comcast, Cox, Time-warner, et cetera hold over local neighborhoods. If you allow competition, then the People will be empowered to avoid the shitty companies and chose alternatives (like Apple TV or Linux ISP). We don't need a top-down approach. We need a bottom-up approach where we free the locals from the shackles that currently chain them to Comcast (Cox, TW, etc).

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    7. 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

    8. Re:I see what they did there... by natehoy · · Score: 2, Interesting

      Or sell the division to a sucker who can't figure out that they will fail, like the recent sale of the landlines in New England to FairPoint.

      Though, in this case, FairPoint was so obviously unprepared, it showed in their business plan as submitted to the PUC (fuel and labor costs won't go up for 5 years, yet you haven't prepurchased fuel nor have you finished negotiations with the Union. They won't go up. Really?).

      But, point taken. Verizon got a LOT of money to put better phone lines and Internet access in to rural areas. None of it ever happened. FairPoint walks in, agrees to all of the conditions Verizon was paid for, submits a business plan based on some alternate reality where money is free and Internet connections grow like marshmallows on magical faerie trees, and declares Chap 11 within a year. Wow, surprise surprise!

      The subsidies should be paid after the services are available, not before, and should be paid to the people who managed to turn it on. Once subsidies are involved then everyone should be able to use the connection, with the telco allowed to reclaim their costs and make a reasonable profit on those portions of the infrastructure that were not covered under subsidy (company can accept a 50% subsidy, for example, and is allowed to charge competitors a higher rate based on the fact that the company paid for half of the wiring, but once you accept subsidies you must also accept competition).

      Or we need a "public option" for Internet access. Instead of the government paying private companies to put in lines then forcing those private companies to allow access to the wires, simply have the government put in the wires and charge anyone who wants to use them. Then if a company thinks they can put in their own wires more cheaply, let 'em, and the company can do with those wires as they wish since no government money went into them. As long as the government has wires everywhere, competition will be available and no one can declare a monopoly, but if a company can do it cheaper than the government they are free to do so.

      --
      "This post contains words, known to the State of California to cause thought. Wash brain thoroughly after reading."
    9. Re:I see what they did there... by tsm_sf · · Score: 5, Insightful

      What we need is a publicly owned infrastructure and privately run services.

      --
      Literalism isn't a form of humor, it's you being irritating.
    10. Re:I see what they did there... by commodore64_love · · Score: 2, Interesting

      Can we see some citation please?

      And I don't mean providing a link to some blogger's opinion (which is the typical response), but some actual FACTS that trace the money flowing into telephone companies coffers, and money flowing out to rich person's pockets. From my reading of the 1996 Telecom Act, the money was earmarked for laying digital phonelines, not internet. i.e. Blame Congress for poor planning

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    11. Re:I see what they did there... by Party+Chief · · Score: 2, Interesting

      Comrade Commode-Soixante-Quatre-Amour

      Bottom-up only works properly if the top-down regulations permit fair play. Otherwise we end up with robber [railroad|telco] barons all over again and *that would never do* (to quote the Fat Director whose poor railway was nationalised as a knee jerk reaction to crappy capitalism at work!).

      There was a good reason why the pendulum swung to the left in the early-mid 20th century. We've seen it swing back since, and I'm sure it's in the process of swinging back again this time. Here's hoping the telecoms industry in North America gets a belated kick up the backside as a result.

      --
      trolling the first world...
    12. Re:I see what they did there... by mcgrew · · Score: 4, Interesting

      Well, with my experience with the utilities in Illinois, I'd say let the municipalities run the utilities. Springfield's CWLP (whose manager bears an uncannily striking resemblance to Mr. Burns) is owned by the city. We have the lowest rates, the best customer service, and the least downtime of any electric company in Illinois.

      When two F2 (almost F3) tornados ripped right through my neighborhood in March, 2006, completely destroying the electrical infrastructure, we had power within a week. The telcos and cable took a month to get service restored, and they didn't even have to plant new poles.

      Later that spring (June IIRC) a weak F1 went through the St Louis area. I visited my friend in Cahokia, who has the privately owned Amerin, and the damage was minimal. I didn't see a single line down or broken pole. But he was without power for a month.

      Private utilities are not beholden to their customers; only to their stockholders. It's not like you can take your business elsewhere. Publically owned utilities are beholden to their customers; bad electric service loses an election for the Mayor. He IS accountable, Amerin's CEO is not.

    13. Re:I see what they did there... by slimjim8094 · · Score: 2, Insightful

      It theoretically wasn't welfare, it was intended as an incentive. The idea was the money came with strings attached. It needed to be enforced to have any effect.

      When it wasn't enforced, it became welfare.

      --
      I have developed a truly marvelous proof of this comment, which this signature is too narrow to contain.
    14. Re:I see what they did there... by mwvdlee · · Score: 3, Funny

      I completely agree.
      If the government would make me uber-rich, it would help everybody!

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    15. Re:I see what they did there... by mcgrew · · Score: 2, Insightful

      Notice I said "so-called conservatives". True conservatives don't want welfare for the rich.

    16. Re:I see what they did there... by cc_pirate · · Score: 5, Insightful

      What crap. Trickle down is a failure.

      We just saw the era of lowest taxes on the rich and corporations since the introduction of the income tax and the highest level of corporate welfare ever as well... and the job generation rate during that time was one of the LOWEST EVER.

      So please stop espousing the idiotic opinion that somehow giving the rich more money means the rest of us get more money. It doesn't work that way now if it ever did and the DATA doesn't lie.

      --

      "There are laws that enslave men, and laws that set them free. " - Sean Connery as King Arthur

    17. Re:I see what they did there... by nine-times · · Score: 4, Interesting

      I live in NYC and the phone company won't even provide broadband. I can get Internet from the cable company, but Verizon says neither FIOS or DSL are available in my area.

      That's in the country's largest city. The idea that internet sucks because our population density is too low is absolute hogwash.

    18. 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.

      --
      Support Right To Repair Legislation.
    19. Re:I see what they did there... by element-o.p. · · Score: 4, Insightful

      Actually, if you filter out most of the hyperbole and bitterness in his post, you will find he does hit on a number of uncomfortable truths. As a part-time youth pastor, I don't share GPP's cynicism towards faith, but I agree that religion can, has been, and probably always will be abused by the corrupt for their own gain. The bigger problem, IMHO, is that our politicians are in the pockets of special interest groups. Democracy in the USA was a grand experiment, but as wise as the Founding Fathers were, I don't think they expected that "We the People" would ever grow so complacent as to let our government become as powerful as it did. Whether you vote Democratic or Republican doesn't matter -- once someone is elected to a national office (I would claim that the same is true even at state and municipal levels, for that matter), they belong to the money-holders that put them there. We've been sold up the river.

      Obama isn't looking out for your best interests, and neither was Bush nor McCain nor anyone else who had a snowball's chance of getting elected.

      The only question left now is, "how do we get our government back?"

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    20. Re:I see what they did there... by Shakrai · · Score: 2, Interesting

      Democrats - what you get when the public realizes it can vote itself bread and circuses.

      Dude, I've started to hate the Democrats myself but this last line of yours is utter bullshit. You realize that the GOP does the exact same thing, right? GWB tried to have his cake and eat it too -- massive tax cuts that he wouldn't even back off from when we went to war. For the first time in the history of the Republic we had a war without a tax increase to pay for it.

      If that doesn't qualify as voting yourself bread and circuses then I don't know what does.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    21. Re:I see what they did there... by cdrguru · · Score: 2, Interesting

      What happened in Illinois was simple. The state decided the lines should be open and decided the lines should cost some fixed amount statewide. Doesn't matter what the cost was, it was way, way below what it cost to maintain the copper wires. But the state "knew" that since the wires were already there, in the ground and on the poles, that there were no more real costs.

      This resulted in great "openness" and a real bonanza for DSL startups. Just like you would think it would.

      Only problem was, a small dose of reality got injected because the folks maintaining the lines adopted a go-slow policy on actually making this stuff available below cost. I guess they could have decided to go along with the state's wisdom on this matter and ended up either trying to finance the line maintenance some other way or just gone out of business. I guess neither option really appealed to them.

      End result is no more "openness" and no more state-mandated access to what is now SBC's copper. It was an interesting period from around 1996 to maybe 2002, but it accomplished nothing and was entirely driven by the state imagining they knew enough to run Ameritech's business. They didn't and it showed. I am not in favor of trying this again because for anyone that really needed services from Ameritech (then, SBC now) it put up huge roadblocks - they couldn't deny services to folks that wanted to resell DSL service if they were servicing other customers quickly. So everything was go-slow for years.

    22. Re:I see what they did there... by commodore64_love · · Score: 2, Interesting

      >>>Private utilities are not beholden to their customers

      No but being regulated monopolies, they are beholden to the government who operate as the boss. If you're friend was without power, then it's because his *government* fucked up and did not do its job.

      I experienced a power outage in Maryland after the remnants of a hurricane blew through and wiped-out power throughout the whole region, and the Baltimore G&E company had my power back in just one day. That's because the government has a law - you either get the power turned-on within three days, or you'll be fined several million per day. That's what the government of Missouri needs to do with its private-but-publicly controlled electric company.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    23. Re:I see what they did there... by uuddlrlrab · · Score: 5, Insightful

      Trickle Down Economics: Since 1981, Reaganomics has been unzipping the secrets to arcing, golden streams of wealth, allowing it to flow freely and splash down on all peoples of the middle and working class, so we may bathe in its warm and slightly bitter essence, and glory in the amber fountains of our masters. Here, have a towel. Wait, go buy your own.

      --
      Odi profanum vulgus et arceo
    24. Re:I see what they did there... by nine-times · · Score: 2, Insightful

      But such is what happens when you let one company monopolize a market.

      I also blame the attitude people have toward the Internet. Most people I know talk about the Internet like it's an entertainment service. It's their source of porn and Netflix and MP3s, so they think it's roughly analogous (and no more important than) cable TV or Blockbuster video.

      Of course, even these people use the Internet to send business-critical emails, engage in commerce, voice their political views, and pay their taxes. The Internet is a very important part of our infrastructure. It's not just for porn.

    25. Re:I see what they did there... by FrigBot · · Score: 4, Interesting

      We used to have a good utility system in Alberta, until the conservative government of the past decade or so started to privatize the utilities. Now, the quality of service has generally gone down, while prices have gone up. The idea was that by introducing competition, that the oposite of what I just described would occur.

      Oh, there's competition now alright - yesterday my 84-year-old next door neighbour told me about a phone call she got from some unknown gas company trying to convince her to bundle gas and electricity into some contract-based plan. She asked them to send an information package, and what they did was sign her up, and send her the info. Fortunately a bright relative of hers sent a letter to the company and straightened it out, removing her from their list. Things like this happen all the time now. I even heard that when the AB government was considering de-regulation of electricity, the state government of California warned them not to do it, citing the awful experience they had with the same experiment in the late '90's. But then, this is Alberta and we don't listen to reason.

    26. Re:I see what they did there... by digitalunity · · Score: 2, Informative

      Simple economics seems to imply to my feeble mind that you need approximately the same money going into the unemployment fund as is coming out to remain solvent.

      If everyone who is employed puts in 4% of their payroll, it takes about 12 workers to support one person on unemployment if they get 50% of the average pay of the employed people. Given the 12:1 ratio, unemployment can only remain solvent up to an unemployment rate of 8.3%. Anything beyond that and you run a deficit until you run out of money, reduce benefits or increase taxes.

      These numbers are dramatically simplified, but the core concept remains valid.

      --
      You can't legislate goodness. Let each to his own destiny, by will of his freely made choices.
    27. Re:I see what they did there... by mcgrew · · Score: 2, Informative

      I'm pretty sure you're wrong. I've been through too much history. I never thought I'd see a worse president than Carter, but Bush proved me wrong.

      Bush was a wonderful president -- if you make over $300k per year, that is. He was a disaster for everyone else. He started with a budget surplus and ended with the biggest deficit in history. Our country was attacked on his watch, and the previous administration warned him, but he didn't listen. Then he started a needless, pointless war in Iraq. Bush may possibly go down as History's worst president; I've been voting since Nixon and he is by far the worst I've seen.

      It's far too early to judge Obama, but you Republicans have been doing so since before he took the oath of office.

    28. Re:I see what they did there... by MBaldelli · · Score: 2, Interesting

      When two F2 (almost F3) tornados ripped right through my neighborhood in March, 2006, completely destroying the electrical infrastructure, we had power within a week. The telcos and cable took a month to get service restored, and they didn't even have to plant new poles.

      As I work for a telco/cable provider let me give you some insight into the accuracy of this. In the past it was the telco -- Ma Bell -- that provided the poles for the power wires to be strung up on. Now it's the Power company who's responsibility it is to plant the poles (even if they get some of the baby bells to do it for the power company on a contractual basis).

      If the cable company or telco were to place their wires up on any of those poles prior to the power company, they will find these wires ripped down by the power company. The cable company and telco can even find their wires ripped down in a neighborhood that the power company has finished re-stringing the wires into but have not been properly cleared for power activation/restoration.

      So, as a general rule to stop the needless waste of sending trucks out for re-wiring; the telcos and cable company will wait for the go-ahead (usually a call, sometimes a letter) from the power company telling them that the neighborhood is clear for their wiring. Sometimes the power company is efficient and will inform in an expedient manner. Most times the power company is a hulking monster with the right hand not telling the left hand what it's doing and delays occur. Long delays

      --
      "The truth points to itself." - Kosh, Babylon5
    29. Re:I see what they did there... by commodore64_love · · Score: 2, Insightful

      Wow. You sure make a big deal out of nothing.

      The answer is simple: The local government owns both the street and the pipe under the street. Comcast and Verizon and the electric company each own their separate wires that run through the pipe.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    30. Re:I see what they did there... by mykos · · Score: 2, Informative

      I'm voting for Cincinnatus next election.

  2. I for one, by ae1294 · · Score: 4, Insightful

    have not read TFA but anything the teleco's HATE must not be all that bad...

    1. Re:I for one, by PizzaAnalogyGuy · · Score: 4, Interesting

      There are, however, several things to consider especially when it's about telco's.

      Lets say you've ordered a pizza delivery guy to bring you a big fat pizza with some coca cola, because frankly you've a little bit hungry. But what will the pizza delivery guy do if you're mean to him? That's correct, he will not give you the pizza. You might try calling a different pizza place, but you're out of luck if your area doesn't have one or they're already closed after 9pm.

      It's basically the same thing with telco's. Only way to change that is to get government to do something about it.

    2. Re:I for one, by JustOK · · Score: 2, Funny

      Pizza with the government cheese!

      --
      rewriting history since 2109
    3. Re:I for one, by Maximum+Prophet · · Score: 2, Insightful

      You might try calling a different pizza place, but you're out of luck if your area doesn't have one or they're already closed after 9pm.

      It's basically the same thing with telco's. Only way to change that is to get government to do something about it.

      But not by creating pizza's with government cheese. You change things by opening your own pizza shop. (the way I do it is to make my own pizza) The governments job is to make the playing field level, not by providing all services.

      It seems that more and more, government un-levels the playing field, by design. It natural when you think about it. We'll put you in charge of pizza shop licensing. Who are you going to lunch with, the sharp dressed person from the pizza lobby, or the wild haired, crazy guy that wants to "revolutionize" the pizza business and stick it to the man. (in this scenario, you are the man.) Since you hang with the PIAA goons, and they offer to do most of you job for you by writing the pizza legislation, what group is going to have the laws in their favor?

      --
      All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
  3. 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.

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    1. Re:We paid for the lines. Share them or get off. by Improv · · Score: 3, Insightful

      Better than that - the letters patent are meant to protect and aid business ventures in order to promote the interests of society. If any company is unwilling to do that, we should revoke it and dissolve them.

      --
      For every problem, there is at least one solution that is simple, neat, and wrong.
    2. 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.

      --
      What changed under Obama? Nothing Good
    3. Re:We paid for the lines. Share them or get off. by sjames · · Score: 2, Informative

      Society through their representatives and the courts.

    4. Re:We paid for the lines. Share them or get off. by sjames · · Score: 4, Insightful

      Guess where the right of way comes from to bury that fiber?

    5. Re:We paid for the lines. Share them or get off. by cdrguru · · Score: 3, Interesting

      We tried that already in 1996 in some parts of the country. I don't think it ever made it everywhere. The problem was, the State came in and said to the incumbant telco that they would permit other companies to use their lines for some payment (say $1 per line) ignoring what their own information and that of the telco said it cost to maintain the line. Say the real cost was $5 per line.

      The result was a bonanza - lots of start-up companies formed to take advantage of this huge disparity in costs. They got plenty of investors because just dealing with the arbitrage between the $1 fee and $5 real cost could result in $4 getting passed around. Just collecting the interest on this money was worthwhile if there was enough of it.

      Well, obviously nobody spends $5 on something and sells it for $1, at least not very long. Nearly all of the DSL start-ups failed when the real terms of the deal becaome known to everyone. We still have some folks trying to play at this game of paying less than what the service they are getting costs. Vonage is there because of this play and the bones of the whole Sprint ION fiasco. End result is that there is a real cost and if you separate by force the profit from the cost the cost has to be paid somehow.

      Nobody wants that. We have been hiding the cost of physical line maintenance for a long time, probably since around 1960 or so. And the structure of the incumbant phone companies allowed these costs to be very effectively buried. So effectively that today nobody knows where the real cost-sinks are.

      The end result of this is likely another stab at state-mandated fees for line use. And whatever the fee is, it will be too low for reality. My guess is this time around they will really break the system and the lines will simply not be maintained for years.

  4. Fascism, DUH by czarangelus · · Score: 5, Insightful

    "Fascism should more properly be called corporatism because it is the merger of state and corporate power."

    America is, and pretty much always has been, a fascist nation. I think the recent bailouts of the banking giants and car manufacturers should prove that it is fascist now; Andrew Jackson himself was fighting fascism when it came to central banking back in the 1830's. War and weapons define the American economy. Boeing and Raytheon and Xi could be considered the ultimate achievement of which a fascist society is capable.

    Lew Rockwell is fond of referring to the central government as the Welfare-Warfare state. Our country has always defined itself through these two socialist conspiracies against mankind - welfare both corporate and personal, which stunts economic growth and creates a class of victims wholly dependent on the largess of their tormentor - and warfare, which is the extension of corporate power through the state in order to secure resources overseas. We should abandon this socialism, this corporatism, this fascism - and create a government that exists only within strict Constitutional boundaries. Nothing else will do for the good of mankind.

    --
    When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.
    1. Re:Fascism, DUH by Delwin · · Score: 4, Insightful

      It's also called 'bread and circuses' and it's been around a lot longer than Lew Rockwell - by a few thousand years.

    2. Re:Fascism, DUH by AndersOSU · · Score: 3, Interesting

      If we've always been a fascist nation, and we're the sole remaining superpower, the whole welfare-welfare state thing has a pretty good track record, huh?

      The only quibble I have is that corporate welfare really only came into vogue with Reagan after our ideological rival, the soviet union's fate was pretty much sealed. We should probably try to figure out if corporate pandering is good for an economy, like social safety nets are. Personally, I'm putting my money on bad - and think we should return to a single welfare state.

    3. Re:Fascism, DUH by czarangelus · · Score: 5, Funny

      I can't find it, but the old Italian's speech in Catch-22 sums it up best; what good is it being a superpower if you are always caught in a state of conflict and you're always in economic turmoil as a consequence? Nobody ever bothers Lichtenstein.

      --
      When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.
    4. Re:Fascism, DUH by jandrese · · Score: 2, Interesting

      By this measure, aren't all governments, throughout time, fascist?

      Describing fascism as a government with business interests makes the definition far too broad to be useful, the only possible reason to do so is to invoke an emotional response at the very word fascist.

      --

      I read the internet for the articles.
    5. Re:Fascism, DUH by Abcd1234 · · Score: 2, Insightful

      If we've always been a fascist nation, and we're the sole remaining superpower, the whole welfare-welfare state thing has a pretty good track record, huh?

      Speaking as a member of a welfare state that didn't have a massive economic meltdown and continues to tick along while the US flounders, I'd say yeah, it does have a pretty good track record:

      Hint: An idea isn't bad just because the American government is too fundamentally fucked up to implement it properly.

    6. Re:Fascism, DUH by mcgrew · · Score: 4, Interesting

      War and weapons define the American economy. Boeing and Raytheon and Xi could be considered the ultimate achievement of which a fascist society is capable.

      When I was a child, President Eisenhower warned of the "Military Industrial Complex". Apparently we didn't heed his warning.

      We should abandon this socialism

      Corporatism is NOT socialism. Socialism is the polar opposite; socialism tries to make a better society (usually failing, however). It is facism, though. What kind of people rail against giving welfare to the poor but have no problem giving it to the rich?

    7. Re:Fascism, DUH by TemporalBeing · · Score: 2, Interesting

      America is, and pretty much always has been, a fascist nation. I think the recent bailouts of the banking giants and car manufacturers should prove that it is fascist now; Andrew Jackson himself was fighting fascism when it came to central banking back in the 1830's. War and weapons define the American economy. Boeing and Raytheon and Xi could be considered the ultimate achievement of which a fascist society is capable.

      Then why is ovrer 2/3rds of the American economy based on CONSUMER spending[1] instead of WAR or WEAPONS? And of that, most of it is spent by women.[2] (See the numerous articles on ecomomics and how they are all worrying about women not spending more but vowing to spend the same and live more frugal lives for the evidence.)

      Not to mention that the USA spends only about 4% GDP on Defense[3] at the national level last I was aware.

      Hmm...not much of a leg to stand on for your claims, now is there?

      [1]2009-10-11 USA Today Article
      [2]dated article on consumer spending (2003), but matches what I've recently read in the last month per the point and a more recent article on women being frugal. and yet another article on frugal consumerism in the USA
      [3]Wikipedia USA Military budget - with reference links

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    8. Re:Fascism, DUH by mcgrew · · Score: 2, Insightful

      The only quibble I have is that corporate welfare really only came into vogue with Reagan after our ideological rival, the soviet union's fate was pretty much sealed.

      In Soviet Russia (no joke, no meme) the government controled industry, with disastrous results. In the modern day US, industry controls government, and I fear the result may be equally disasterous.

    9. Re:Fascism, DUH by pak9rabid · · Score: 2, Insightful

      Nobody ever bothers Lichtenstein.

      I wouldn't wanna mess with the Lich King either.

  5. Good by Killer+Orca · · Score: 4, Funny

    I'm glad something finally brought AT&T and Verizon together, I hate it when big corporations get in fights. Also, fuck you both for calling the U.S. innovators in wireless broadband, we are in the middle of the pack at best in broadband services.

  6. Must be doing something right by deprecated · · Score: 5, Funny

    If the big telcos hate it, I like it.

  7. here is a nice little quote by Anonymous Coward · · Score: 4, Funny

    "...direct government encouragement can facilitate deployment and drive penetration."

     

    ...that's what she said.

  8. More competition needed by Maximum+Prophet · · Score: 5, Interesting

    Verizon notes, open access and unbundling would be a bad policy for the United States, largely because of the rural nature of much of the country. "The problem in these rural and low-density areas is that they have been unable to attract even a single entrant," the telco argues. "Imposing unbundling will not only fail to solve this problem, but will only make things worse: if the economics do not currently support a single provider, they are even less likely to support multiple(and potentially an unlimited number of) providers."

    I'm not sure that you can have worse service than no service. There are many areas that only allow one (or a few) providers. If that one provider chooses not to give service to a part of it's service area, those people are screwed. Maximum innovation will come from maximum competition. It's called capitalism, but it always seemed to me that capitalists usually want the least amount of competition possible.

    --
    All ideas^H^H^H^H^Hprocesses in this post are Patent Pending. (as well as the process of patenting all postings)
    1. Re:More competition needed by portnux · · Score: 5, Insightful

      And the broadband companies take legal action to prevent private citizens and communities from creating their own broadband systems why?

    2. Re:More competition needed by dkleinsc · · Score: 5, Interesting

      Why not more regulation?

      Telecom is by all appearances a natural monopoly, like other utilities. If you take AT&T and Verizon and break them up into little pieces, in about 15 years you'll be right back to where we are now in this market. We know this because we tried breaking up Ma Bell, and within about 15 years we were back to an oligopoly (and probably would have been back to a monopoly had the FCC and FTC allowed it).

      The ways to handle utilities, in order of my preference at least, based on the experiences of residents where each of these are applied:
      1. Publicly owned and operated: This isn't perfect, but by all appearances can do a really good job. When was the last time you thought about your municipal water and sewer service? That's the sign of a well-run utility.
      2. Heavily regulated monopoly: This is the electricity market in a lot of places. Again, far from perfect, but customers generally aren't bilked and service is usually pretty decent.
      3. Less regulated oligopoly: This can be decidedly unpleasant if the various players realize that they can earn more by both of them bilking their customers rather than trying to take market share away from each other. The regulations can help prevent problems, but are generally less extensive than the regulated monopoly.
      4. "Free-market" free-for-all: Think California during the electric deregulation. This typically is really an unregulated oligopoly.
      5. Unregulated monopoly: Standard Oil et al. Typically, the monopoly makes a huge bundle of cash while all the customers (who often have little choice but to pay) get bilked.

      Right now, telecommunications is sitting at option 3. AT&T and Verizon would both love option 4, and whichever one is capable of buying out the other would really really like option 5, but for the purposes of serving customers you're typically better off with option 1 or 2.

      --
      I am officially gone from /. Long live http://www.soylentnews.com/
    3. Re:More competition needed by mdarksbane · · Score: 3, Interesting

      I think about my municipal water and sewage service all the time. It's actually a real concern that I might get them.

      You see, I live in the country, and paid quite a bit when I bought my house to put in a new septic system that should last me 30-50 years. However, the nearest city recently (against the wishes of anyone nearby) decided to put in a new water treatment plant a few miles down the road. Not close enough to really bother me, thankfully, but close enough that they might want to run lines to my house.

      That's great, right? Government at work, getting better sewage system out to the country.

      If the county runs sewer in front of your house, you are *required* to pay to be attached. That means thousands to tens of thousands of dollars of direct costs that you are required to pay, regardless of whether your current system still has 30 years of life on it, and for no real direct benefit to you.

      Government-run utilities can do good things, provide good services, all that. But it's still government, and there's still a "must" attached to it that can really screw you over if you're caught on the wrong end of their plans.

    4. Re:More competition needed by Just+Some+Guy · · Score: 2, Informative

      My mom lives about a mile and a half outside a medium-sized Midwest city. When my dad was alive, he once served as the campaign director for a friend of his who was running for County Commissioner, and they won the election. Fast forward about 15 years.

      The county commission voted to enact a leash law. In this case, "county" means "sparsely populated area surrounding the city", not like Orange in SoCal. My mom owns a big, friendly mutt who pretty much kept her sane after my dad died. She was faced with a few options: get rid of her beloved pet (not gonna happen), turn the 100+ pound dog into an indoor pet (which would not have ended happily), or fence the yard. So she fenced it. All five acres. I have no idea what she actually paid for it, but that couldn't have been cheap.

      Well, about a year later, Charlie The County Commissioner was running for re-election and called my mom for a campaign donation. After all, her dearly departed husband helped elect him, right? Mom told him, "sure! I'd love to! Put me down for $10,000. Oh, wait: that's how much I had to spend to build the redacted fence that your backward-assed commission forced me to put up to comply with the redacted leash law in the middle of the redacted countryside. Shove it up your redacted and don't ever call me again." She said that was the best phone call she's ever had.

      --
      Dewey, what part of this looks like authorities should be involved?
  9. 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.

  10. 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.

    1. Re:Linesharing by The+Cisco+Kid · · Score: 4, Insightful

      There isn't one. But that doesn't mean the monopoly telecoms won't play make-believe (eg OMG customers will have to choose between 'all these confusing options', as opposed to having only one choice, made for them by the single telecom serving their area)

  11. Attn: Telcos by Anonymous Coward · · Score: 5, Insightful

    Ahem.. (clears throat). FUCK YOU!

    The taxpayer gave you Millions if not Billions back in the 90's for infrastructure upgrades. And now, a decade later, with YOU posting record profits, and infrastructure being upgraded at a rate comparable to snails pace, you have the gall to ask for more money from the taxpayers, i.e. your CUSTOMERS?

    Pardon me Big Telco, but FUCK YOU!

    1. Re:Attn: Telcos by JustOK · · Score: 5, Funny

      "We can't hear you now"
      -Verizon

      --
      rewriting history since 2109
    2. 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.

      --
      Give me Classic Slashdot or give me death!
    3. Re:Attn: Telcos by Hatta · · Score: 2, Informative

      Do you like Cringely's presentation better? If you're still unconvinced, which of the facts do you dispute?

      --
      Give me Classic Slashdot or give me death!
  12. Isn't bread and circuses by Colin+Smith · · Score: 3, Insightful

    Walmart and Fox?

     

    --
    Deleted
    1. Re:Isn't bread and circuses by ericrost · · Score: 4, Insightful

      And you don't get ANYTHING in return for it, right? Oh, what, you want your trash picked up? You want sewers built to your property? You want roads to drive on? You want fire protection? You want the police to arrest those naughty black people who keep making you scared and nervous? You want an army to protect your property claims against foreign and domestic threats? You want clean water running out of the tap?

      Tell you what, you keep your extra $35 one year, but stop using ALL of the above services and see how you feel at the end of the year? Or pay someone to perform all of those services out of your own pocket and see how much you have left.

    2. Re:Isn't bread and circuses by commodore64_love · · Score: 2, Insightful

      >>>And you don't get ANYTHING in return for it, right?

      No not really. I get nice paved roads which are funded by gasoline taxes. I get a navy and army to defend me from outside invaders. A government-run school for my kids, which they don't attend (private schooled), so really I'm paying for a school that I don't get to use. Overall? Not worth the $35,000 I paid in taxes last year. $5000 would be more reasonable.
      .

      >>>Oh, what, you want your trash picked up? You want sewers built to your property? Fire protection?

      Those would be good ideas, but they are all private companies that are billed separately. Not tax funded. Not government provided.

      --
      "I disapprove of what you say, but I will defend to the death your right to say it." - historian Evelyn Beatrice Hall
    3. Re:Isn't bread and circuses by Ungrounded+Lightning · · Score: 2, Informative

      Oh, what, you want your trash picked up?

      I pay for that separately.
        CA: "Waste Management" inc.
        NV: I take it down to the transfer station myself and pay by the pound.

      You want sewers built to your property? ... You want clean water running out of the tap?

        CA: I pay for water and sewer: Alameda County Water District.
        NV: I paid to put in a well and septic system and will pay again to have the latter cleaned out if/when whatever doesn't get biodegraded has to be pumped out and hauled away. Only have "homestead" water rights but that's all I need.

      You want roads to drive on?

        License fees, gas taxes. Additionally:
        CA: Special assessment items on property tax bills.
        NV: Ditto. Also: What roads? B-)

      You want fire protection?

        Property taxes again, both states.

      You want the police to arrest those naughty black people who keep making you scared and nervous?

      Nope. But I'd be happy to be able to carry my own gun to protect myself against anybody, any color, who tried to commit a crime against me that endangered my person (which most crimes do). The cops can come and sort it out later if they believe it necessary, when they get around to it.

        NV: Can carry open most places and have my CCW so can carry concealed ditto. This is pretty important, since there is lots of the state where it might take all day for a deputy to get there even IF the passes are clear. Also there are lots of things besides people that might need attention: Starting with feral dog packs and I could go on for pages.

        CA: I'd be happy to work it the same way. But in the bay area the government won't allow it - unless you're one of a very select few (mainly politicians and their contributors).

      You want an army to protect your property claims against foreign and domestic threats?

      The way the constitution SAYS it should work is for the states and/or the Fed to call up the militias in those situations - and for the state militias to consist of the general population ARMED WITH THEIR OWN WEAPONS and lead by officers chosen by the procedures each state designates (which was typically election from their number by the rank-and-file). Between callups there would be minimal, if any, government employees involved. Border and coast guard, navy, and other ongoing stuff (to the extent still required) can be funded out of tariffs. No reason the merchant marine shouldn't be armed for self-defense (and also subject to callup in time of war).

      Care to come up with any OTHER excuses for the various layers of government to confiscate a third or more of my income and a chunk of each transaction and seize much of the rest, plus my existing assets, by devaluing the currency while forcing me to accept their printing-press (or electronic-bits) money as payment in private transactions?

      --
      Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
  13. 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.

  14. you're a middling propagandist by circletimessquare · · Score: 5, Insightful

    you have the emotional appeal down solid, its pretty good chest thumping stuff

    but you're underpinning your inflammatory rhetoric with poor a set of facts

    good propaganda never lies, it traffics in half truths. so, for example, you don't want to say the usa has ALWAYS been a fascist state. not mainly because thats a lie, but also because you undermine your final appeal for a return to constitutional roots... well, if those roots are so strong, how come the usa has "always" been a fascist state? its a contradiction. you can't refer to a strong set of principles that never actually worked

    no, you need a sympathetic narrative, a demagogue's best friend: its better to refer a mythological past where everything was perfect, the founding fathers reigned supreme. then evil influences crept in. in your particular fantasy, that would be corporations, and they subverted and ruined the garden of eden

    so instead you want to say the usa WAS ONCE a solid strong democracy. instill chest thumping patriotism here with strong quasihistoric visions, you know the drill. then change the tone and talk about how money was thrown around and morals and integrity were corrupted, the founding fathers betrayed... good hollywood stuff

    good luck to you sir, you're well on your way to being a solid propagandizing demagogue. you have the emotional appeals down solid. now just hone up on the half-truths and you'll be a rabble rouser supreme!

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  15. Separate ISP's businesses by sanosuke001 · · Score: 5, Insightful

    1. Separate the ISPs into separate entities. Phone service in one company, internet service in another, television in a third.
    2. Separate the ownership of the infrastructure into another company
    3. Make the three companies from part 1 pay company from part 2 for access
    4. allow any other company access to part 2's lines for the same fee as it charges part 1 companies
    5. don't EVER allow them to merge again

    --
    -SaNo
    1. Re:Separate ISP's businesses by cdrguru · · Score: 2, Informative

      This was tried in 1996, with the government mandating the cost of service - what part 1 had to pay part 2. Problem was, the mandated payment wasn't really enough to cover it. Works out fine when it is all just different parts of the same company.

      Doesn't work at all for third-party company that wants to offer DSL service. Third party company starts out thinking they are getting a great deal and many investors flock to the new company with visions of how profitable it is going to be. DSL service explodes, at least it did in Northern Illinois.

      Well, it turns out that with just about anything if you get a price that is too low to actually make anyone want to do the work, they end up not wanting to do the work. End result was that Ameritech (former Illinois Bell company that owned the lines) would get a request to put a different company's DSLAM into their CO and they would sit on it for a while hoping it would just go away. If it did get installed, provisioning the lines to connect to it would be made dead last priority - as you would expect.

      Having the State set the price for the service was a disaster. We had $14.95 DSL plans but you could never get connected. There were 10 different companies offering DSL service in some places - except they couldn't get their equipment installed. I believe some sanity returned four or five years ago and the idea of DSL competition at state-mandated fee levels was pretty much discarded.

      I believe state-mandated T1 pricing is still in effect, however, and it results in some very odd market distortions. General rule that seems to apply is whenever anyone puts their thumb on the scale, be it the butcher or the governer, it turns out bad for the consumer in the end.

  16. So that would be..? by Anonymous Coward · · Score: 5, Insightful

    So that would be AT&T, Comcast and Verizon as opposed to AT&T. Comcast and Verizon, then.

    1. Re:So that would be..? by Lord+Ender · · Score: 3, Funny

      Sprint frowns upon your omission.

      --
      A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  17. Bah, mod me down, I just can't read. by Abcd1234 · · Score: 4, Insightful

    This isn't insightful, mod me down. I totally misread the GP and thought his first sentence was sarcastic. It wasn't. His point was that, despite being a "welfare state", the US has clearly done alright, and that corporate welfare is the big problem, something which we both agree on.

  18. Just make the lines government controlled already by MBGMorden · · Score: 3, Insightful

    I've got a wonderful idea - instead of giving telco's tons of cash to build infrastructure, why doesn't the government build the infrastructure itself (much like the highway system) and then simply lease bandwidth on those lines at a set rate to any company who wants it?

    --
    "People who think they know everything are very annoying to those of us who do."-Mark Twain
  19. Oh, no they don't.... by TheHawke · · Score: 2, Insightful

    Considering the lack of attention to the details of improving rural service, I feel that they do not deserve a single nickle of gov't funding.

    Fact is, they got a lot of gall for asking for more money after the stunning YTD they posted on the market, both wireless and wired.

    Until they can show REAL (as in purchase orders for equipment, permits for installation of same, they really do not deserve any outside funding at all.

    They've been living off the fat for this long, I think that it would be high time to put them on some lean rations for a while.

    --
    First rule of holes; When in one, stop digging.
  20. We need a strong FCC mandate and we need it NOW by mrnick · · Score: 2, Informative

    Getting my starts in IT at the beginning of the commercialization of the Internet and being present to see what it has developed into makes me think that the wireless telecommunications companies are off their bloody rocker!

    One major difference from the Internet and the many wireless networks (3g, etc) out there is that the Internet through purchase or peering agreements are all interconnected. If the United States could dismantle the current wireless networks in place and deploy the strategically there would be no coverage gaps, even in the most rural of areas.

    It makes neither technological or economical sense to maintain so many separate networks.

    I don't know the answer, because I wouldn't want the government running the infrastructure, but if maintaining the wireless infrastructure was done by a single entity and if that entity was not any of the wireless service providers communications would be much better in this country.

    There should be one unified wireless network that would sell its services for a fee, regulated by the FCC/FTC.

    Wireless service providers would pay for access to this network and then resell it to consumers, with value added services.

    Cell phone manufactures should not be allowed to be Wireless service providers. All phones made should work with any Wireless service provider. No locking, etc. Wireless service providers could still sell discounted phones in trade for contract commitments but there would never be a scenario like exists today such that a phone manufacture, like Apple, inc, could restrict their phone to work with one wireless provider.

    Fees should be regulated to keep illegal price fixing that happens with all the providers today.

    How providers bill would be up to them but real unlimited, all you can eat, service with absolutely NO restrictions. This is what happened with the Internet. It was once where you paid for a set number of hours per month or you paid by the minute as you used it. But, economies of scale and demand from the consumers forced the providers to go with unlimited service.

    Today, even when a providers sells you an unlimited data plan, like AT&T forces you to do if you use an iPhone it is not unlimited. AT&T restricts tethering and if the feel you have used an excess amount of data they will terminate your account. So, it's not unlimited it just has a secret limit. This would have never been tollerated with Internet service.

    True unlimited cell service is inevitable I wish they would go ahead and accept it. Unlimited minutes, Unlimited texts, Unlimited data, no restrictions on tethering, etc..

    The day is coming when we won't buy broadband because everyone will have their own personal Internet connection with them, in their pocket (their phone).

    I just hope I live through the cell wars to see it. The economics work for the same reason unlimited Internet accounts are profitable. That's because of averages of large numbers. I might use tons of data and talk minutes but my dad, my sister, my roomate don't. It averages out.

    All this bickering is making my head hurt. Consumers should group together and sue for being overcharged and price fixing in the cell industry.

    ppfffffttt...

    Nick Powers

    --

    Encryption: I may not agree with what you say, but I will defend your right to encrypt it...