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Kentucky Telephone Companies Pushing For Option To End Basic Service

An anonymous reader writes "There is a bill pending in the Kentucky State Senate that would eliminate almost all Public Service Commission oversight over local phone companies. Written by AT&T lobbyists, SB135 is being pushed by the phone companies as a 'modernization' of rules. It would keep the PSC from investigating phone service on its own and eliminate rules concerning price discrimination, price increases, required published rates, and performance objectives. It also will prevent any state agency from imposing net neutrality, and will enable phone companies to use the fact that there are cell phones to refuse to run a land line. The text of the bill is available online."

157 comments

  1. I have absolutely nothing to say except by Anonymous Coward · · Score: 4, Insightful
    1. Re:I have absolutely nothing to say except by Darinbob · · Score: 1

      People should also go out and watch The President's Analyst again to get an idea of what The Phone Company is really up to.

  2. Hilarious! by AliasMarlowe · · Score: 2

    Money talks. 'nuff said.

    --
    Those who can make you believe absurdities can make you commit atrocities. - Voltaire
    1. Re:Hilarious! by ColdWetDog · · Score: 4, Insightful

      But they really are sore losers.

      FTFA

      “This is one of the reasons we (wanted to buy) T-Mobile, so we could build out the wireless spectrum and offer higher speeds and higher quality coverage to all of Kentucky, including Harlan County," Rateike said.

      Right. I'm sure that was on the first page of the Powerpoint shown to the FCC.

      --
      Faster! Faster! Faster would be better!
    2. Re:Hilarious! by Animats · · Score: 2

      âoeThis is one of the reasons we (wanted to buy) T-Mobile, so we could build out the wireless spectrum and offer higher speeds and higher quality coverage to all of Kentucky, including Harlan County," Rateike said.

      Yeah, right. As if Harlan County (pop. 33,200, area 498 square miles) could possibly have a spectrum shortage.

      Harlan County is served by Appalachian Wireless, an independent outfit. They're rather retro ("Coming soon: 4G Wireless!") It's a mountainous and sparsely populated area. There are towns like Teaberry, KY, (pop. about 400) with no cell sites anywhere nearby.

    3. Re:Hilarious! by Anonymous Coward · · Score: 3, Informative

      As a citizen immigrant to Harlan County, I can speak to the lack of coverage here. Appalachian Wireless, the local major CDMA carrier, does provide a large coverage area. AT&T, the most popular wireless provider in the area, does not. Verizon does have a single tower, as does T-Mobile (though I can't understand why), though their coverage is non-existent beyond the Harlan city limits.

      AT&T acquiring T-Mobile would in no way expand their service offerings to the rest of the county/surrounding area. They have absolutely no interest in improving service quality or speed, as we are extremely small potatoes when compared to their major metro customers.

      The thing is that AT&T already has sufficient spectrum licensed to cover the entire mountain-riddled county, if they so desired. They have repeatedly and consistently stated that they have no intentions of expanding their current coverage zones in the county. The last tower erected for AT&T was only done so after they lost more than 2500 customers (as if that is a lot) to Appalachian Wireless.

      As it stands, T-Mobile's coverage is simply a token to say that they have it, just like that of Verizon. AT&T's call quality is abysmal, their prices are too high for the services offered and their data speed is basically unusable, as they only offer overloaded, under-provisioned EDGE. At least Verizon and Appalachian Wireless offer EVDO.

      If you live in Harlan County and own an AT&T iPhone, you learn to love sporadic open wireless hotspots, or you suck it up and pay AT&T for a Microcell. Right, because paying AT&T not to improve their infrastructure clearly sounds like a fair deal for the customer.

      This place is often a great example of "The Land That Time Forgot."

  3. Sure by Anonymous Coward · · Score: 4, Interesting

    I can see allowing them to do all that, as soon as they are no longer the only choice in town, oh and all the subsidies that the government paid for installing the lines need to be paid back as well.

    1. Re:Sure by sjames · · Score: 5, Insightful

      Don't forget paying property owners rent for their cables now that they want to reject the strings attached to using public right of way.

      Naturally, they'll need to negotiate that with each owner separately.

    2. Re:Sure by forkfail · · Score: 1

      Interest on all subsidies paid as well.

      --
      Check your premises.
    3. Re:Sure by garcia · · Score: 2

      You're better off collectively bargaining for that. That's what the farmers in PA did for natural gas rights and made a ton more money than when they were individually settling.

    4. Re:Sure by sjames · · Score: 4, Insightful

      That would be up to the individual property owners if they would like to bargain collectively, individually, or not at all (meaning come and get your wires before I declare them abandoned property).

    5. Re:Sure by chrismcb · · Score: 2

      oh and all the subsidies that the government paid for installing the lines need to be paid back as well.

      I don't think AT&T plans on paying back any of the $100,000,000,000 they expect to make, by selling the real estate from those lines: http://tech.slashdot.org/story/12/02/12/0340214/all-ip-network-produces-100b-real-estate-windfall

    6. Re:Sure by theshowmecanuck · · Score: 2

      This is the state with the creationist museum. I can seen them doing it... period.

      Here is something on that creation museum page I posted that scares the hell out of me: "You'll also uncover the truth about antibiotic resistant bacteria."

      --
      -- I ignore anonymous replies to my comments and postings.
    7. Re:Sure by will_die · · Score: 1

      That is what the law says. Don't know about the paying back of the lines they still have to pay for towers and equipment so it would be up to the government organization that provided the subsidies and the requirements for getting those subsidies.

  4. This Could Be Made Fair by Anonymous Coward · · Score: 5, Insightful

    This sounds like a fine idea. But since they're truly free of regulatory shackles, they should have no problem paying whatever market rate the city wishes to charge them to rent the space under the streets that their lines run through.

    1. Re:This Could Be Made Fair by Githaron · · Score: 5, Insightful

      Agreed. If they want government aid and special treatment, we have every right to expect them to be regulated. If they want to make the shots, they need to pay for everything.

    2. Re:This Could Be Made Fair by einhverfr · · Score: 4, Insightful

      The better idea would be for the counties to use eminent domain to take over the lines and phone switches and rent them back to the telcos!

      Actually, this is not a bad idea. The telco's could then rent out the services to competing providers meaning an end to the monopoly and a need for such price controls. The original telco's could use their settlements to buy additional switches to stay in business, leasing the lines back from the counties.

      Monopolies are not free markets. One can create a free market by nationalizing the natural monopoly portion and then renting out access on a RAND basis to all potential competitors on a per-subscriber basis.

      --

      LedgerSMB: Open source Accounting/ERP
    3. Re:This Could Be Made Fair by Squiddie · · Score: 2

      [sarcasm]No, that would be socialism and that's bad.[/sarcasm]

    4. Re:This Could Be Made Fair by Trogre · · Score: 1

      Yeah but I bet the good people of Kentucky would be too chicken to try that.

      --
      "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
    5. Re:This Could Be Made Fair by Amouth · · Score: 2

      I'm a fan of removing their common carrier status if they keep pushing things like this

      --
      '...if only "Jumping to a Conclusion" was an event in the Olympics.'
    6. Re:This Could Be Made Fair by Anonymous Coward · · Score: 0

      Yeah but I bet the good people of Kentucky would be too chicken to try that.

      Kentucky people chicken? I know there's a KFC joke in there somewhere, just waiting for someone to write it!

  5. Re:This will pass almost for sure by sneakyimp · · Score: 1

    Fine with me. Let them shoot their mostly rural population in the foot -- as long as the telcos give up the Universal Service Fund.

  6. Most rural population is most expensive by ackthpt · · Score: 0

    You want to live back in the hills, sure, just get used to driving into town to make a phone call.

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Most rural population is most expensive by betterunixthanunix · · Score: 4, Insightful

      If connecting GMRS and MURS stations to the phone system were legal, this would be an easier problem to solve. People in rural areas could set up wireless services for themselves, essentially creating their own cooperative cell phone networks.

      Not that the telcos want to change those regulations.

      --
      Palm trees and 8
    2. Re:Most rural population is most expensive by Beelzebud · · Score: 1

      Corporations above everything!

    3. Re:Most rural population is most expensive by postbigbang · · Score: 3, Interesting

      I'm normally a peaceful guy, but this one calls for a flogging (at the polls).

      --
      ---- Teach Peace. It's Cheaper Than War.
    4. Re:Most rural population is most expensive by Anonymous Coward · · Score: 3, Interesting

      I really don't understand why people aren't taking this into their own hands. Why limit yourself to wireless or nothing at all? Lay fiber. It really is not hard. Rural communities must have people who know how to move dirt. Commercially that's the most expensive part. I'm sure you'll find a bunch of geeks who would love to learn by doing the rest, except the dirt moving bit. Phone service is trivial once you have steady and fast internet access. That's what VoIP is for.

    5. Re:Most rural population is most expensive by MightyMartian · · Score: 4, Insightful

      I doubt there are any lack of geeks who wouldn't love to get behind the wheel of a backhoe.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    6. Re:Most rural population is most expensive by theNAM666 · · Score: 1

      In Harlan County? They hang geeks there...

  7. Written by lobbyists. by Beelzebud · · Score: 4, Insightful

    Anyone see anything wrong with this picture?

    1. Re:Written by lobbyists. by Anonymous Coward · · Score: 4, Insightful

      No, I mean isn't that how all bills are written today? You wouldn't want to pull legislators away from important campaign fundraising efforts, would you?

    2. Re:Written by lobbyists. by will_die · · Score: 2

      It was not written by the lobbyists. Items of it were requested by a lobbyists for multiple companies based on ideas originally requested by AT&T.
      The real question is why do you have problems with people banding together and petitioning their government for a change in the law.

  8. Privatizing by koan · · Score: 5, Insightful

    If you need any evidence why privatizing government services is a bad idea this is it.

    --
    "If any question why we died, Tell them because our fathers lied."
    1. Re:Privatizing by Githaron · · Score: 2

      In a truely free market, they would be required to pay for all their infrastructure and not get any special treatment from the government.

    2. Re:Privatizing by Anonymous Coward · · Score: 0

      Unfortunately, such things do not exist, thus, we must make do with a mixture of all things.

    3. Re:Privatizing by Nimey · · Score: 1

      But we don't have a free market and that's all the government's fault.

      I've known an Internet Libertarian or two who basically argued from the premise that all ills were either directly caused by the gov't, or indirectly caused by the government doing something else foolish or malicious, then presented things (I shan't call them facts) to bolster that opinion.

      It's very tiring to argue with them.

      --
      Hail Eris, full of mischief...

      E pluribus sanguinem
  9. Open up their network for competition. by Karmashock · · Score: 5, Insightful

    Right now it's illegal for anyone to run phone cable in ATT or verizon's territory. they have government backed monopolies of these areas. Sure, they are forced to share bandwidth with other providers but those providers have no control over the cable or the prices charged for using it.

    Open it up so that other companies are allowed to run cable. They might now run cable... no one will be forcing them to do it. But they'll have the option and maybe if ATT acts badly that will give a rival company an incentive to step in and offer a superior service at a lower price.

    All these old grandfathered monopolies need to die. Throw holy water in their eyes, jam a fist full of garlic in their mouths, and drive a wooden stake through their hearts.

    If they competed without these rules they'd never even consider this sort of nonsense. Their competitors would eat them alive... probably with fave beans

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    1. Re:Open up their network for competition. by Anonymous Coward · · Score: 2, Interesting

      Running cable multiple times is just ridiculous. You want every company to repeat what the previous company did, really? Sure, let's duplicate every bit of infrastructure multiple times for the sake of competition, what a great idea.

      The government should build and manage the infrastructure and rent it out to companies to provide services on top of. That way, the cost of entering the market is lowered and lean and mean can beat fat and lazy.

    2. Re:Open up their network for competition. by Solandri · · Score: 5, Insightful

      Right now it's illegal for anyone to run phone cable in ATT or verizon's territory. they have government backed monopolies of these areas. Sure, they are forced to share bandwidth with other providers but those providers have no control over the cable or the prices charged for using it.

      This is correct. The idea is that it is wasteful for multiple companies to run multiple cables which do the same thing. Maximum efficiency (albeit not reliability) is achieved when there's just one company and one set of cables. So a company is selected and granted a monopoly for laying down and providing service over these cables.

      In exchange, they cede the right to set their own prices. All price increases have to be reviewed and OKed by a government-run Public Utilities Commission or Public Service Commission.

      Getting rid of the PUC or PSC without revoking the phone company's cable service monopoly makes no sense whatsoever.

    3. Re:Open up their network for competition. by Anthony+Mouse · · Score: 5, Insightful

      Their competitors would eat them alive

      That's the problem: They wouldn't. Because it works like this: No prospective competitor has enough money to build a nationwide network all at once. The only way to do it is to roll out in one city, then use the profits from operating the network in that city to roll out in the next city, rinse and repeat.

      The problem comes that whichever city you choose to start with, the incumbents in that city will drop their margins to zero only in that city on the day before you start offering service there. The only way to get customers to use the new network is to match the price cuts and operate with no margins, so the fixed costs (which the incumbents have already paid off and the new competitors haven't) thereby make the new competitor unprofitable and leave no profits to use to expand any further. And because prospective competitors know that will happen (as it has happened in the few instances where new competitors have tried to enter the market in the past, or there has been a municipal fiber roll out), no one is willing to invest in building a competing network.

      The fact that there is sometimes both a telephone and cable company that offer internet service in the same area is just a historical accident, because by the time they were actually in competition with each other they were both already big enough that they couldn't drive the other out of business with price competition without severe damage to their own business, so instead they just both operate on the unspoken agreement that neither will be the first to do anything aggressively competitive. But if a small new competitor ever started a build out, have no doubt that they would lower their prices until the competitor got the message that continuing to build a network will be made unprofitable for them.

      Realistically, if you want a serious competitor to the incumbents, it needs to be municipal. You pay for the network with tax dollars (or a bond issue) on the assumption that you may not ever make back the money, and if you do, great. And if not, no harm done, you've paid for fiber and now you've got it.

    4. Re:Open up their network for competition. by wierd_w · · Score: 2

      Redundant infrastructure would definately pull the teeth on the netneutrality issue, and would effectively drown the "bandwidth hogs!" Issue too.

      Single runs might be easier for civil planners to manage, but they get constipated the way water and sewerlines do when too many people use them, and once the area is developed, good luck getting the trenchers and backehoes in to replace/upgrade the pipe.

      Allowing multiple companies to lay lines would solve a whole lot of problems.

    5. Re:Open up their network for competition. by Anonymous Coward · · Score: 1

      Open it up so that other companies are allowed to run cable. They might now run cable... no one will be forcing them to do it.

      I suspect many people are Libertarian because they don't understand history, or they don't believe it. Phone companies weren't always regulated and they didn't lay cable. Cable is expensive. It only makes sense to cable dense urban centers, but rural America had no phone service. The answer was to tell them, "hey, if you spend the money laying cable we'll guarantee that you are the only provider in the area." It was the only way to induce phone companies to invest in cabling less profitable areas. Think of it as sort of like a patent for prescription drugs.

    6. Re:Open up their network for competition. by Bing+Tsher+E · · Score: 1

      The problem comes that whichever city you choose to start with, the incumbents in that city will drop their margins to zero only in that city on the day before you start offering service there.

      That's a textbook example of mercerizing a monopoly. The anti-trust action would obliterate them.

    7. Re:Open up their network for competition. by Bing+Tsher+E · · Score: 1

      mercerizing? was that some sort of spell check thing???

    8. Re:Open up their network for competition. by rtfa-troll · · Score: 1

      Getting rid of the PUC or PSC without revoking the phone company's cable service monopoly makes no sense whatsoever.

      Absolutely; but it's no use simply getting rid of the legal monopoly. You have to actually force them to give back the cables. If someone already has the cables in the ground then there is no way for a competitor to practically come in because the costs of new build are always much higher than the costs of merely extending and improving the old network wherever needed to stop the competitor.

      --
      =~ s,(.*),<sarcasm>$1</sarcasm>,g if any_point_you_wish();
    9. Re:Open up their network for competition. by Anonymous Coward · · Score: 0

      Only if it were filed, but history has shown that most times, they won't unless they manage to offend the wrong people (which typically can be avoided with a nice chunk of cash).

    10. Re:Open up their network for competition. by makomk · · Score: 1

      I think historically it was even worse than this for telephones actually - there was no legal requirement for the incumbent to allow local calls between them and the new upstart in the same city at all, so they didn't, and what use is a phone line that can't actually be used to phone anyone you know living in the same town or any local companies?

    11. Re:Open up their network for competition. by Anonymous Coward · · Score: 0

      I agree in principle, but in this case there is a good enough reason to "duplicate" infrastructure, because the existing infrastructure is antique. A new fiber network would certainly be useful beyond merely creating competition.

    12. Re:Open up their network for competition. by Anonymous Coward · · Score: 0

      The problem comes that whichever city you choose to start with, the incumbents in that city will drop their margins to zero only in that city on the day before you start offering service there.

      That's a textbook example of mercerizing a monopoly. The anti-trust action would obliterate them.

      I'm against giving monopolies a more lustrous appearance and strengthening them... wait what?

    13. Re:Open up their network for competition. by Karmashock · · Score: 1

      You don't need to for the same reason someone using Verizon can talk to someone using time warner cable.

      The networks are connected.

      So build a small network and then connect it to the national backbone. People in the area you built your network will have the option of using your cable and then they use the backbone after they've left your network.

      I suppose you'll be boned if you have to use Verizon's trunk line but you could also build your own bypass. You don't need to build everything at once. Just part of the network.

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    14. Re:Open up their network for competition. by Karmashock · · Score: 1

      you could make the same argument about shoe companies.

      Should there only be one shoe company? it would be more efficient if there were only one that only made one type of shoe.

      Losses in efficiency by laying multiple cable is made up through increased competition, innovation, and consumer choice. Furthermore, the inefficiency is paid for by the corporation and NOT passed on to the consumer because of the competition.

      Will it be hard even without monopoly protection to compete with the big telecom companies that have grown fat on it for a long time? Yes. But now it won't be illegal to compete with them. And little by little areas will have additional choices. In 100 years the market should be diversified which is about how long it took for the telecoms to get this deeply rooted.

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    15. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      You didn't even read the entire first paragraph, did you?

    16. Re:Open up their network for competition. by Compaqt · · Score: 1

      Here's an idea: The government should own the pipes.

      Literally, the pipes: the cylindrical things in which you would then pull wires.

      So you'd have a 6" (?) pipe, and then ATT would pull their wire along, and Brand X theirs, and City Internet Co their own.

      --
      I'm not a lawyer, but I play one on the Internet. Blog
    17. Re:Open up their network for competition. by Karmashock · · Score: 1

      I read it... you're arguing big companies can squeeze out smaller competitors. That's true though that doesn't justify the government backed monopoly.

      Why don't you remove the restrictions and lets see what happens? I suspect many small companies will try to offer better service at a lower price.

      Some will fail because they're bad at their job.
      Some will fail because the big companies kill them. But killing a smaller company takes money. You have to lower your prices and you sometimes have to buy them out. You can't do that repeatedly without it showing up on the balance sheet.

      Eventually we'll get more diversity in the market place. Big cities especially should have lots of different options while smaller towns and rural areas should have specialized companies that tailored for their market. The big telecoms will be mostly relighted to managing the backbone and even then there should be some competition to offer cheaper trunk lines.

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    18. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      I'm not saying that opening the market to competition would be a bad thing. It just wouldn't have any effect, because there are no small competitors who are willing to enter it. Which you can see as plain as day from the fact that there are already markets where competitors are legally allowed to enter, but nobody does. Look at the Google fiber project -- there were cities falling all over themselves to get them to build there. Topeka officially changed their name to "Google, Kansas." It isn't the law that prevents new competitors from entering the market, it's the incumbents. Google is only doing it because they're in it to do an experiment rather than as a profit-seeking endeavor.

      Some will fail because the big companies kill them. But killing a smaller company takes money. You have to lower your prices and you sometimes have to buy them out. You can't do that repeatedly without it showing up on the balance sheet.

      Right, but they don't have to do it repeatedly. They don't even have to do it once. All they have to do is establish a credible threat of doing it. Then no one is willing to be the first to call their bluff and they never have to pay a dime.

    19. Re:Open up their network for competition. by Karmashock · · Score: 1

      I disagree and in any case it's very hard to make your argument until the market is free and your point is proven. If and when that happens it will make sense to take some steps to make sure the market is competitive. However, it is silly to expect a rational market place when we have government backed monopolies everywhere.

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    20. Re:Open up their network for competition. by Karmashock · · Score: 1

      That lack of competition stifles innovation and it removes all fear a company might have that it will lose customers to someone else in the same territory.

      New competitors could offer a better service by offering it differently or using different technology. Furthermore, it is a myth that the customer pays for this business expense. The business expense is an investment by the company made in hopes of getting the customer's business.

      Many examples of this exist. For example, the space pen... the story is often told incorrectly in that the US spent millions developing a ballpoint pen that would work in space. Where as the Russians just used a pencil. Early US astronauts used pencils just like the Russians. However, they had problems. Pencil shavings and other pencil related debre floats around in zero g. It's a hazard. it gets in the eyes, it can get into electronics... it makes a big mess. So an American enterperner using his own money developed the "space pen"... and then sold it to NASA. The US government never paid more then the price he was selling the pens for... and that price wasn't much more then you'd pay for a good fountain pen.

      Enterprise is full of stories like that. Competition yields a benefit more then the sum of it's parts. It is spurious to look at the cost of laying multiple cables and conclude that it is less efficient. That implies that the single cable will be managed properly and will be upgraded and will be innovated upon and will be expanded. None of that happens with a monopoly because there is no impedance for proper management, upgrades, or innovation. What motivates a company with a monopoly to do anything better? Their customers are captives.

      Look at ATT as a cell phone company... easily one of the worse cellphone operators in the US and because of there is some competition in the cell phone industry ATT pays for that weakness. Imagine if they didn't. Imagine if cellphones worked the same way landlines worked. ATT would have no incentive to improve its network because customers would have no choice.

      All government backed monopolies and even many municipal monopolies have the exact same problem. Public schools are similar in that you can't vote with your feet. You're stuck with the school you're issued even if it's filled with failure. Every one of these systems would improve radically if subjected to continuous competition.

      There is a Darwinian purity to capitalism and competition. Let the game play out and you get something better over time.

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    21. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      There already exist regions where the government does not prohibit competing telecommunications companies. It is rarely if ever the case that any actually sprout up.

    22. Re:Open up their network for competition. by Karmashock · · Score: 1

      any major cities or is the intersection the middle of nowhere?

      because if it's the middle of no where then that's like wondering why there isn't an agriculture boom in the middle of Antarctica.

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    23. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      I'm not aware of any comprehensive list, but you're thinking about this at completely the wrong scale anyway. It's not like you're applying for a building permit and if the law says you can't do it then you have to go home sad. If you want to install fiber in some city, you have a hundred million dollars worth of working class jobs that you can bring to the state. You're going to be getting unsolicited calls from the governor's office asking if you need anything. Whatever the law says now is totally irrelevant -- they'll make it say whatever you want to get the jobs.

    24. Re:Open up their network for competition. by Karmashock · · Score: 1

      There are plenty of telecommunications companies that would love to run a second set of fiber lines throughout New York or San Francisco. Claiming otherwise is just silly. They can't. The density is there. The market is there. The money is there.

      It's illegal.

      Make it legal and then tell me you told me so when nothing happens. I find it very unlikely that this product is different from every other product in human history and every other service. that it uniquely is the only thing that does not benefit from competition or that this is the only thing that no one will even try to compete in given the opportunity.

      You would have to establish why this product is unique. I don't think you can because I don't think it is... and proving that it is would be almost impossible.

      Ultimately, while I'm happy to hear you theory it sounds offensively obtuse.

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    25. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      Do you not understand what a natural monopoly is?

    26. Re:Open up their network for competition. by Karmashock · · Score: 1

      Sure, they're also very unstable, short lived, and result mostly from a technological innovation that no competitor can match. But after that is dealt with they always fade.

      The best example remains the Alcoa Aluminum company. They invented or acquired a means of refining aluminum that was radically more efficient then anything that existed prior to that point. aluminum previously had been a precious metal simply because it was so expensive to refine. The imperial plates that Napoleon sat his guests at included a set of aluminum plates as well as gold, silver, and platinum. I believe the aluminum was regarded as more precious even then the platinum but I could be wrong there. In any case, Alcoa came up with a means of refining aluminum that was so efficient you could use it in aircraft airframes, soda cans, food cans, and aluminum foil. That is a natural monopoly.

      Of course, once the patient expires anyone can build their own aluminum refinery thus ending the natural monopoly.

      What you have with the telecoms is not a natural monopoly because it's government backed. It's a government sponsored monopoly. It is literally illegal to compete with them by law.

      So a better question would be... Are you aware of the concept of a government backed monopoly? A rhetorical and somewhat insulting question. Of course you know... but then your question was more insulting since I had mad it quiet clear through previous posts that I knew what a natural monopoly was and furthermore you put no qualifiers in your question where as this very statement stands as an acknowledgment of that point.

      When you make stupid insults you just make yourself sound stupid. Just fyi... no offense intended.

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    27. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      In any case, Alcoa came up with a means of refining aluminum that was so efficient you could use it in aircraft airframes, soda cans, food cans, and aluminum foil. That is a natural monopoly.

      Of course, once the patient expires anyone can build their own aluminum refinery thus ending the natural monopoly.

      What you have with the telecoms is not a natural monopoly because it's government backed. It's a government sponsored monopoly. It is literally illegal to compete with them by law.

      What are you talking about? You have it exactly backwards. A patent is not a natural monopoly -- it's a government enforced monopoly.

      Natural monopolies are the complete opposite of "very unstable, short lived, and result mostly from a technological innovation" -- they're the result of extremely high capital costs and they exist because they're extremely stable and difficult to challenge. The "best example" (as you can read in the Wikipedia article) is a public utility, like the phone network or the electrical grid.

      What makes a natural monopoly is a market with extremely high capital costs (like the cost of laying miles of fiber optic cable). The incumbent in the market long ago paid those costs and recovered them by charging high margins. Once the monopolist has recovered their costs, they can (if required to do so by competition) reduce their margins to very low levels and still turn a profit, because their massive capital investment has already been recovered and any additional margins are pure profit. However, the prospective competitor can't profitably operate at the same margins as the incumbent in that situation, because they need higher margins to apply to the capital cost that the new competitor hasn't recovered but the incumbent has. And all prospective competitors know that, so no one will enter the market and the first incumbent retains the monopoly.

    28. Re:Open up their network for competition. by Karmashock · · Score: 1

      ... wow.

      Okay, do you know what the world looked like before patients? Apparently not.

      Well, prior to patients the way you protected your intellectual property was through trade secrets. Basically you couldn't tell anyone how you were doing it and had to protect the nature of your invention or discovery in the same way you keep pictures of your genitals from getting on the internet. eg... not many people have access, it's on a need to know basis, and anyone that gets a copy without authorization is hunted down like an animal and killed.

      That is what we had before patients. Alcoa could have done that with their refining technology just as the Chinese did it with their silk industry for... probably at least a thousand years. Don't believe me? Hop in a time machine and ask the chinese how to produce silk circa year 0. The most polite answer you'll get is "no, go away"... the more likely answer will be "please climb into this sack" followed by some rocks added to said sack... and the combination of parts A and B added to the local river bottom.

      That is the world before patients.

      What patients allowed for was inventors and intellectual property creators to be compensated for their works without having to resort to duct tape, box cutters, and various unmarked graves in the desert.

      Did alcoa have a government backed monopoly through its patients for duration of the patient? Yes. But patients don't actually last that long. 14 years is how long they last. That's nothing in the scheme of things. If a company that invents something new gets a monopoly on it for 14 years what exactly is the beef there?

      Would you honestly prefer what is behind door number two? Because if you think your anarchistic vision of no copyrights is going to lead to the land of milk, honey, and group sex... then you're clearly not a student of history... or very knowledgable... which is the nice way of saying uneducated... which is a nice way of saying stupid.. Sorry... I'm getting crabby because you're "talking" rather loudly out of your anus... and your "breath" frankly sinks. So... sorry about being short there.

      I would suggest you be a little more humble about things you don't understand or... try one of these breath mints.

      If it sounds like I'm not serious anymore, you've won a prize for deduction... I'm just trying to amuse myself now since it became clear this was only going to go to stupid places.

      --
      I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    29. Re:Open up their network for competition. by Anonymous Coward · · Score: 0

      Okay, do you know what the world looked like before patients? [...] Well, prior to patients [...] what we had before patients [...] the world before patients [...] What patients allowed for [...] through its patients for duration of the patient [...] patients don't actually last that long [...]

      You keep using that word. I don't think it means what you think it means.

      If it sounds like I'm not serious anymore [...]

      Or was I just wooshed?

    30. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      If changing the topic of discussion to arguing against something I never said and that has nothing to do with the telecommunications market is your way of admitting that you were wrong, I accept your apology.

    31. Re:Open up their network for competition. by Karmashock · · Score: 1

      I addressed your argument directly. If your attempt to claim my direct rebuttal is off topic is your way of saying you have no idea what you're talking about... then I agreed with you two posts ago.

      Yeah for consensus!

      Google dementia medication and order yourself a box. And then do it again because you'll probably only imagine it the first time.

      --
      I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    32. Re:Open up their network for competition. by Anthony+Mouse · · Score: 1

      I addressed your argument directly.

      Really? Some unsubstantiated rhetoric about what the world would be like without patents directly addresses the point that a patent is not a natural monopoly and certain common public utilities are? I'll let anyone following this discussion at home make their own decision on that one.

  10. About time. by cdrguru · · Score: 5, Interesting

    This is the fate of the US phone system. Once there are fewer than a basic minimum number of subscribers it will become extremely unprofitable to even maintain the wires that have connected the country for 80+ years. You can assume that the wires will not be maintained out of charity.

    Best be getting a cell phone is what that means. Oh, your rural area is underserved by cell towers? Too bad, that. Better move to the city where service is better.

    Did you not think flight from landline service would have consequences? It sure does, and it is really going to suck for some people. Aren't you glad you dropped your land line ages ago?

    There is no way the government can somehow force the telephone companies to maintain service at a huge loss. They aren't going to do it. And that means the end of the universal nature of the US phone system. This is a direct outgrowth of people dropping land line (regulated) service for an unregulated cell phone service.

    1. Re:About time. by scottbomb · · Score: 1

      Only problem with your argument is that rural areas ARE well-served. I can't recall the last time my phone registered "no signal", even in the most desolate of places. I know two people who are on SS disability and both have a cell phone. Hell, who DOESN'T have a cell phone nowadays?

    2. Re:About time. by Anonymous Coward · · Score: 0

      I used to live in Kentucky, only a couple of years ago. I didn't have cell service in many parts of the state, even along interstate corridors. The same is true of parts of North Carolina, and I suspect it's true of many rural areas. I don't think you appreciate just how vast and empty parts of the US are: it's not feasible to run cell service everywhere.

      That said, I don't think the answer is to require telephone service to all subscribers regardless of remoteness from urban centers; there needs to be a certain minimum--say, guaranteed landline service, if requested, within fifty miles of any population center greater than 10K people--but not an absolute universal service for everyone in every shack buried in every valley or on top of every desolate ridge in Appalachia. There needs to be a trade-off, though: all monopolies need to be revoked, and it needs to be licit for entrepreneurs out in the hills to run their own cable or fiber or copper line or whatever they want to service their communities or friends and connect it at a convenient point to an IP (if VOIP and data) network or POTS as required.

    3. Re:About time. by CrAlt · · Score: 2

      I think it depends alot of the topography of the area. New England is nothing but hills and valleys. There are lots of little dead zones all over my state of Connecticut. Go north up to northern VT/NH away from the interstate and you could go a long ways with zero signal.

      --
      I have to return some videotapes...
    4. Re:About time. by Anonymous Coward · · Score: 0

      Yep, I can pick you two totally dead spots within 5 miles of my house in the crazy rural state of Maryland. Service is good, but it's not good enough to support the death of land lines.

    5. Re:About time. by CrimsonAvenger · · Score: 2

      I can't recall the last time my phone registered "no signal", even in the most desolate of places.

      I can. I was in northern Arizona, about halfway between Nowhere and Noplace - nothing but desert and mountains for a hundred miles in any direction.

      On the other hand, the farm my father grew up on, which is way back in the hills of MS, has decent cell service, last time I drove out to the old place.

      --

      "I do not agree with what you say, but I will defend to the death your right to say it"
    6. Re:About time. by chrismcb · · Score: 1

      This is the fate of the US phone system. Once there are fewer than a basic minimum number of subscribers it will become extremely unprofitable to even maintain the wires that have connected the country for 80+ years.

      If only something else existed that uses wires. Some sort of network.

    7. Re:About time. by Nimey · · Score: 1

      Some areas, especially thinly-populated hilly areas and especially out West, really are not well-served.

      Can I guess that you live east of the Mississippi in relatively flat terrain?

      --
      Hail Eris, full of mischief...

      E pluribus sanguinem
    8. Re:About time. by Anonymous Coward · · Score: 0

      Verizon, AT&T, and Sprint do not work at my house in suburban Los Angeles even though I'm not behind a hill or mountain or any other obstruction. It's just simply a small hole that they don't feel like filling because it's not worth the expense. The reason land lines served everybody was because they were required to, not because there was some profit motive involved.

    9. Re:About time. by Anonymous Coward · · Score: 0

      pssh, there are dead zones in the middle of Chicago. No signal or anything. It's fine traveling through kentucky, you expect it. But walking through a city of millions and realizing that those few blocks that you're walking have 0 signal? freaky.

    10. Re:About time. by Chrontius · · Score: 2

      You know who lives out in the sticks at one person per hundred square miles?

      The people that grow our food.

    11. Re:About time. by cvtan · · Score: 1

      Lots of places with even modest mountains have regions of no signal. Rural Georgia comes to mind as does Hawaii. My brother lives in Morganton, GA and I can't get cell service at his house.

      --
      Sorry, but gray text on gray background is making my eyes bleed.
    12. Re:About time. by Anonymous Coward · · Score: 0

      Regulate cell phone service similarly: problem solved.

    13. Re:About time. by DarthBart · · Score: 1

      I'm on SS disability, you insensitive clod! And two lines of AT&T iPhone service. And 25mbit DSL service. And I can eat too!

    14. Re:About time. by DarthBart · · Score: 1

      North GA mountains. Went up there for an anniversary trip because there was no cell phone service and I could get away from the office.

      Dumbest move ever, work wise. Machines got powercycled repeatedly to fix "problems".

    15. Re:About time. by kheldan · · Score: 1

      Ah, I see. So it's OK with you for poor people (read as: black people) to be denied access to telephone service of any kind, because they can't afford a cellphone and the phone company won't run lines out to them or have a basic wired service for an affordable price so they can at least make local calls? Asshole.

      --
      Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
    16. Re:About time. by Anonymous Coward · · Score: 0

      Seriously? Go by any homeless shelter or food pantry and try to find one of these "poor" people who does NOT have a cell phone.

  11. Fair & Balanced Amendment? by quarkscat · · Score: 2

    No doubt there will be a "fair & balanced" amendment added to this Kentucky legislation that would force the local telephone companies to surrender all rights to their no-longer-serviced basic phone service "right-of-way" granted by the state. No? WTF! That's shocking news ...

    1. Re:Fair & Balanced Amendment? by Anonymous Coward · · Score: 1

      The Kentucky State Senate is mostly Republican. They have a different definition of "Fair and Balanced" than the dictionary definition and they will vote accordingly.

  12. They are right, stop running out-dated technology. by Above · · Score: 2

    Requiring them to carry the expense of installing copper twisted pairs and the equipment to operate it is outdated thinking. It's low bandwidth, short distance, and generally a waste of time and money for everyone involved.

    Rather, they should be required to install fiber to the home, technology that should have a 30-50 year lifespan, can bring high speed data to rural america, and operates for much longer distances reducing their equipment cost.

  13. Kentuckians, bend over by kawabago · · Score: 2

    Your phone company wants to service you, but you aren't going to like it!

    1. Re:Kentuckians, bend over by Anonymous Coward · · Score: 0

      Don't worry. The Kentucky State Senate is currently 60.5% Republicans. They will make sure you get "serviced" by your phone company, forcibly if necessary.

    2. Re:Kentuckians, bend over by Darinbob · · Score: 1

      This is what confuses me. Doesn't AT&T realize how many of its customers in Kentucky are armed?

    3. Re:Kentuckians, bend over by MightyMartian · · Score: 1

      In the immortal words of Frank Zappa, keep it greasy so it goes down easy.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    4. Re:Kentuckians, bend over by Fnord666 · · Score: 2

      This is what confuses me. Doesn't AT&T realize how many of its customers in Kentucky are armed?

      They also have a fairly low person/backhoe ratio. Wonder how AT&T likes repairing fiber cuts? How about two fiber cuts with 100 feet of fiber missing between them?

      --
      'The tyrant will always find pretext for his tyranny.' - Aesop's Fables
  14. My opinion? by Anonymous Coward · · Score: 3, Insightful

    Fuck you too, AT&T!

    1. Re:My opinion? by PopeRatzo · · Score: 1, Troll

      Fuck you too, AT&T!

      +1, Insightful

      --
      You are welcome on my lawn.
  15. Finally by BitHive · · Score: 0, Troll

    I have long suspected that phone service would be almost free if the government didn't force me to subsidize low-income subscribers.

    1. Re:Finally by cffrost · · Score: 2

      I have long suspected that phone service would be almost free if the government didn't force me to subsidize low-income subscribers.

      Unfortunately, you live in a society.

      --
      Thank you, Edward Snowden.

      "Arguments from authority are worthless." —Carl Sagan
  16. Kentucky is doomed by Skapare · · Score: 4, Insightful

    Given that Kentucky sends to the Senate TWO of the WORST IDIOTS, it would appear likely that Kentucky will probably just end up screwing itself ... if the same kind of people are also in their legislature.

    Business, especially big business, simply cannot be trusted and needs government supervision. Fox. Hen house.

    --
    now we need to go OSS in diesel cars
    1. Re:Kentucky is doomed by xeno314 · · Score: 1

      Eh, I'll agree with you on our U.S. Senators, and concede most of the state offices as well. That said, the state Senate is controlled by Republicans, but the House and Governor's office are Democrats, so there's plenty of opportunity for this to get thrown into gridlock hell....

    2. Re:Kentucky is doomed by evilviper · · Score: 1

      Kentucky will probably just end up screwing itself ...

      First they came for Kentucky, but I did not speak out because I was not a fried chicken...

      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  17. nothing to see by Charliemopps · · Score: 1

    I work for a telco, and we have territory in TN. I even used to work for ATT (yes they suck to work for) I used to work PSC complaints. They're a joke. 90% of them are filed by the mentaly ill who claim their phones are being tapped. We really do send someone out to show them the NID and ped to show there is no electronic device installed while they chat on theie cordless phone. The complaints that remain are almost entirely related to buisness's that decided to go cheap on their building site and are angry the phone company wont run a t1 over a mountain, across a river and under several freeways to get.to their building site they got fpr $200/acre. Yes the psc doles out fines... but those are based on # of customers affected * minuites out of service > (some number) then small fine. and guess who decides how many people were affected and for how long... the psc is useless

  18. Get a HAM license by caseih · · Score: 1

    I live in a rural part of Alberta and I've been told the phone company really wants to get us all on VoIP over the existing WiMax network that runs here. That way they don't have to run wire out to new farm homes. In fact there are several miles of phone wire laying in the ditches around here that the company refuses to bury. I think they hope that if it gets cut by mowers and farm machines enough times that we'll beg for VoIP over wireless. The wireless WiMax system is pretty reliable, but not totally. It goes down in storms, for example. So if we were ever forced to this system, I think I'll be extremely grateful to have my HAM license and HAM station here for emergencies.

    Sounds like rural Kentuckians really need to line up and get licenses and at least basic VHF radios. They're going to need them.

  19. Deregulation or rural phone service: pick 1 by Anonymous Coward · · Score: 2, Interesting

    A debate on this would be fun to watch. The set of Rand Paul supporters should be in favor of the proposed bill on libertarian grounds, while the set of people who live in rural areas (and can foresee the inevitable price spike and service cuts that would follow adoption of the bill) would make for lively opposite sides. The fun part will be watching those in the intersection of these sets wrestle with the idea. Unfortunately, the bill's sponsor has forseen the service cuts. From TFA: "The bill's sponsor, Sen. Paul Hornback, R-Shelbyville, said he doesn't want households to lose any existing phone service. Hornback said he will change the language in his bill to make that clear". Of course, Senator Hornback's wants don't count - only what's in the bill counts. If the bill passes, the fun part will be watching the phone companies weasel their way out of providing service while sticking to the letter of the law.

  20. The real scandal by PopeRatzo · · Score: 5, Insightful

    Written by AT&T lobbyists, SB135 is being pushed by the phone companies as a 'modernization' of rules.

    Hold the phone, Alexander Graham, what the fuck are "AT&T lobbyists" doing writing laws? Am I the only one whose gore rises whenever our legislators vote on laws that are written by the companies the government is supposed to regulate?

    The US gov't is tasked with regulating business just as surely and as constitutionally as it is tasked with protecting national security. So where are the congressional hearings about why industry lobbyists are writing laws?

    Right here on Slashdot, we've got a user, and early adopter, who is a New Hampshire legislator. A member of the lower house of the N.H. congress, and he's a big fan of ALEC, which is an acronym that stands for "19 billionaires who lobby for their own rich asses" or something like that. It probably actually stands for "American Legislation Exchange Committee for Family Prosperity and Progress into the Victorious Future", but if I go to their website to get the actual meaning of the acronym I'm liable to throw another 24" LED monitor ($179 at Tiger Direct) against the fucking wall and my wife swore she wasn't going to help me clean it up if I did that again.

    Anyway, this ALEC, this lobbying group for these 19 rich guys (yes, it really is 19) is responsible for writing almost all the major legislation passed by every Republican-controlled state congress in the US. That's right, these guys send out boilerplate to GOP run state legislatures who plug in the name of their state where it says "Your State Name Here" on the PDF file that ALEC so helpfully sends them attached to an email with the subject line, "FWD:Pass this bill, you slimy little fuck or we'll put $5million into a primary challenge against you next election and you'll never see another envelope from us".

    Anyway, this New Hampshire legislator, Seth Cohn, who thinks ALEC is just the tits tells me ALEC is just a friendly organization who advises legislators and gives them "good, clean code" to work with, as if ALEC was the teabagger equivalent of O'Reilly Publishing or the Open Source Initiative or something. Of course, these ALEC-written laws include laws to make sure blacks and poor people and students can't vote, and prisons get privatized and certain energy conglomerates get fat tax subsidies and schools change their science curriculum to teach the "controversy" that is global warming, but to this Slashdot user/New Hampshire congressperson, it's just "good code".

    Lobbyists writing our laws. What could possibly go wrong?

    Wait, wait, I've got something here...OK, this is something that dirty hippie, Thomas Jefferson wrote in 1816, and I'll leave you with this:

    I hope we shall crush in its birth the aristocracy of our moneyed corporations, which dare already to challenge our government to a trial of strength and bid defiance to the laws of our country.

    That's almost 200 years ago, from one of the dudes that invented this country. He already knew where it was going and he warned us. So when I read about "AT&T lobbyists" writing SB135, it makes me want to go out and occupy something like maybe some lobbyist's fat ass with my shoe.

    --
    You are welcome on my lawn.
    1. Re:The real scandal by chrismcb · · Score: 1

      Hold the phone, Alexander Graham, what the fuck are "AT&T lobbyists" doing writing laws? .

      You know.. YOU can write a law if you want to. You have to convince a law maker to back it, and introduce it. (err maybe you can lobby a law maker) The law still needs to be passed by the law makers before it is made into a law.

    2. Re:The real scandal by PopeRatzo · · Score: 4, Interesting

      err maybe you can lobby a law maker

      I don't have that kind of money.

      According to recent news stories, the ante is $100,000 just to get in the door of these SuperPACs. Have you noticed how the GOP primary race has become a contest between billionaires? Each candidate has their own billionaire as a patron. Santorum has the Fries guy, Gingrich has the Las Vegas casino owner. Romney has Hank Paulson and Goldman Sachs. Seriously, there has been news story after news story about how this or that billionaire is keeping this or that candidate "in the race".

      How did we ever have elections without billionaires?

      --
      You are welcome on my lawn.
    3. Re:The real scandal by thejynxed · · Score: 1

      Not only that, you have the notorious Koch brothers funding all four Republican candidates.

      --
      @Mindless Drivel: 100% of Twitter posts ever Tweeted.
    4. Re:The real scandal by Anonymous Coward · · Score: 0

      One minor tweak to your roster: Glenn Greenwald just wrote about how *MUCH* Frank Vandersloot / Melaleuca (a pyramid reseller akin to amway) would hate to be mentioned here. Vandersloot and his employees also have developed a slick process for tweaking the judiciary: funding opposition campaigns to local/state judges if they ever have to stand for a confidence vote.

    5. Re:The real scandal by PopeRatzo · · Score: 1

      ...you have the notorious Koch brothers...

      Yeah. Frick and Frack.

      --
      You are welcome on my lawn.
  21. Teddy Roosevelt Disapproves by Anonymous Coward · · Score: 3, Insightful

    We today live in an age of rampant deregulation in many large industries, and many people and politicians believe that corporations will act responsibly without regulation. But let me bring you back to a prior age, the Gilded age and the Progressive era. In post industrial revolution america there was a serious lack of workplace and corporate regulations, the most famous of these was the meatpacking industry. In "The Jungle" by Upton Sinclaire, the meat packing industry was uncovered as to its disgusting an unethical business practices, the gory details of which you can read in the well written novel.

    In a round about way, many people believe that deregulation is good, and this bill is an excellent example of deregulation, and may in fact be beneficial, but history has taught us that businesses will not act responsibly, a prime example being Northern Securities, a railroad trust operating in the northern Midwest, which was busted apart by Roosevelt in 1904. The railroads in the midwest had been engaging in price discrimination for years, which had been seriously hurting midwestern farmers, and were detrimental to the nations economy, benefiting only the elite few.

    I fear only that deregulation in the celular industry will benefit only the corporations and will hurt end consumers. I also fear that many influential individuals have not adequately learned many of the valuable lessons that history has taught us, especially from this deregulated time in American history.

    I will admit that some of my fears amy be unfounded, there are still many protective regulations, and many of the monopolies that allowed for price discrimination that was seen cannot exist any more.

    1. Re:Teddy Roosevelt Disapproves by temcat · · Score: 1

      Why exactly is price discrimination bad? After all, it's based on the same nice principle as progressive and even flat percent rate taxation: we take more from you for the same thing just because we can. But market price discrimination is better, because you can in theory (and often do in practice) find another provider of goods and services. No such thing with the government.

    2. Re:Teddy Roosevelt Disapproves by thejynxed · · Score: 1

      Because when you couple price discrimination with monopoly, there IS no other provider of that particular good or service. Railroads at the time were monopolies. Ditto phone service, electric, etc. If it were up to the providers, there would be no alternatives to what they provide, at the price they provide it at.

      This is one of the (many) reasons monopolies are to be frowned upon.

      Now do you get it?

      --
      @Mindless Drivel: 100% of Twitter posts ever Tweeted.
    3. Re:Teddy Roosevelt Disapproves by Anonymous Coward · · Score: 0

      Price discrimination is bad when the actor doing the discrimination is granted a government backed monopoly. In this there are no other competitors by law.

      Jeez.

    4. Re:Teddy Roosevelt Disapproves by Anonymous Coward · · Score: 0

      Price discrimination is bad when the actor doing the discrimination is granted a government backed monopoly.

      So at worst it's no better than taxes.

      In this there are no other competitors by law.

      If I don't like the amount of tax I'm paying, which competing government can I switch to? (Without moving to a different area - that works for private monopolies as well, so it doesn't demonstrate that one's better than the other.)

      Jeez.

      Quite.

    5. Re:Teddy Roosevelt Disapproves by temcat · · Score: 1

      I actually agree with what you say. It's not bad per se, it's bad together with and because of the monopoly. I'm just pointing out that it's basically as unfair as progressive and flat percent rate taxes.

    6. Re:Teddy Roosevelt Disapproves by temcat · · Score: 1

      Yep, that's what I mean. Just as with the government, it's about monolopy, not about price discrimination as such. But with a market monopoly, you can have another provider (though you are not entitled to it, as many assume). With a coercive monopoly, you cannot even have that.

    7. Re:Teddy Roosevelt Disapproves by tepples · · Score: 1

      So at worst it's no better than taxes.

      At least with taxes, those responsible for are subject to a recall every few years by the voters.

      which competing government can I switch to?

      You can in theory make this choice on Election Day.

  22. This has to be stopped by hardburlyboogerman · · Score: 1

    I've already started something on Twitter to stop this bill.

    --
    Geek Hillbilly
  23. Re:This will pass almost for sure by sunderland56 · · Score: 1

    No, it's not fine with you, even if you don't live in Kentucky. Once something like this passes in one state, it is much, much easier to get it passed in others.

  24. As an Australian by AHuxley · · Score: 1

    Good luck with your telco tubes :)
    I just hope your local gov was smart enough to insert a "open for any telco business" in.
    Get some friendly, smart people in from Canadian, South Africa, German, Russian, Australian ect. to run some cheap optical with a smile for any county, city or zone that asks for some competition and options.
    If you want to be the only telco you get special legal protections. Demand to be free of gov oversight, your state is now free to shop around too.

    --
    Domestic spying is now "Benign Information Gathering"
  25. Update instead of Abolish by twistofsin · · Score: 2

    Don't end the requirement, update it.

    Fiber for everyone. Google thinks they can do it don't they?

    And how poor is Kentucky? I live in an older neighborhood with large lots, but everyone is either old or poor right now. 40mb uncapped DSL all around me, but I've still got only the worst 1.5mb available on my block. My cable company has a better network, and unfortunately they have a bandwidth cap and 50c/GB charge for overages.

    I have to give it to my cable company though, they provide (mostly) reliable telephone, 50mb cable internet, and cheap cable tv for a low price.

    But really what I want to know is this: if twisted pair isn't good anymore, why not change the requirement to something that's more economically viable?

  26. Just convert them over by AoXoMoXoA · · Score: 2

    They used the same argumnent about the phase out of analog TV. It is going to leave the elderly and poor behind...i dont think that happend. They found a way to get a big government subsidy to give out free converter boxes.

    What ATT will do is get the government to finance a massive vDSL deployment in these areas and plop an ATA out there on a little battery (they get to keep their phone number and their phone) oh...and we will also give you a video and internet feed. Technology for everyone...ATT bankrolls an upgrade and then reduces their operating cost and increases their revenues. The PSC is supposed to keep that in check but there are a bunch of former ATT/BellSouth exec's sitting on the commission so it is what it is...

    --
    Once in a while you can get shown the light in the strangest of places if you look at it right. -Hunter/Garcia
  27. if at&t wants out... by Anonymous Coward · · Score: 0

    because it's so damn unprofitable for them.. they should just sell..

    or better yet, break up the rural areas into smaller companies servicing a few counties each and give them away (that's right, GIVE, as in no-charge, gratis.. seeing how sbc-turned-at&t and its various acquisitions over the years have benefited greatly from generations of being a monopoly) -- turning them into customer-owned cooperatives instead.

    in our rural areas, we have telephone co-ops and they do rather well.. in fact, they have built out dsl service just about *everywhere* stretching from town to town even when it's 20-30 miles between them... sure, prices are a little higher than adjacent at&t-controlled markets, but the co-ops do just fine... and even return some of their profits back to their members in the form of annual dividends (the rest goes back into the co-op, not some executive's pocket). how do they do it? they answer to the members (who are the customers) NOT just shareholders of public stock (who care only about profits not how they're made)... they are driven more by service standards and service availability than by profits. what a concept.

    ____

    additionally, i think that since wireless has surpassed wireline in number of lines served, wireless should be regulated (including regulatory approval and oversight of rate increases, contract terms, fees, service standards, etc) JUST LIKE wireline service has been.

    i also don't think wireline service is obsolete. i think there is a market for a physical connection to every residential unit and business in the country and will be for at least another generation or two. it is still the easiest, most efficient, and most secure way to deliver communication services (voice, high-bandwidth data, video, etc) to fixed locations.

  28. Re:They are right, stop running out-dated technolo by ewieling · · Score: 1

    The incumbent phone companies like Verizon are putting in fiber as fast as they can. They have to share the copper, but they do not have to share their fiber.

    --
    I really shouldn't have used someone else's email address for this account.
  29. Re: Running cable multiple times by Anonymous Coward · · Score: 0

    That's how it works in the countries where Internet access is fast and cheap.

  30. subject by Legion303 · · Score: 1

    Kentucky has phones?

    1. Re:subject by thejynxed · · Score: 1

      Of course they do, how ELSE do you think the moonshiners avoid the po-po? :D

      --
      @Mindless Drivel: 100% of Twitter posts ever Tweeted.
  31. As opposed to who? by sirwired · · Score: 2

    (Before I get started, I would like to acknowledge that this bill is indeed a steaming pile of horse$hit. Now, back to my regularly scheduled criticism of knee-jerk Slashdot populism.)

    It is not at all uncommon for bills to be written by those with an interest in the matter. What's the alternative?

    Let's say Congressman X gets a bug up his butt about righting some wrong... we'll use warrantless wiretapping as an example. He needs to write a bill, and one that will not be as full of holes as Swiss cheese. The best person to write such a bill is a lawyer. Now, Mr. X isn't a lawyer and has not used his staff budget to hire an expensive civil liberties lawyer on retainer. Where does he go?

    Well, a logical solution is the EFF or ACLU, but those are a bunch of lobbyists too. Who, exactly, is supposed to write this legislation in a way that it can be fairly certain it'll actually work?

    Just because a bill is written by a lobbyist does not mean it's defective by design. Just because a bill is written by a company with a financial interest in the bill does not mean it's inherently defective. The congressman is more than welcome to reject or modify the bill, or pay a (smaller) amount of money to a lawyer to review it. Yes, many congressman are unduly influenced by things like campaign contributions, but that is a separate question from where bills come from.

    1. Re:As opposed to who? by Anonymous Coward · · Score: 0

      Wait, if we don't vote them in because they can write the bills, what the hell IS it their job to do?! I can't imagine that we're REALLY needing them because of their understanding of the issues.

  32. "Not uncommon" != "OK" by Anonymous Coward · · Score: 0

    I mean, its not uncommon for dictators to abuse their power and privilege. It's not uncommon for people to break the law. But we don't say it's OK.

    Except you, when it comes to corporate rights...

    1. Re:"Not uncommon" != "OK" by tnk1 · · Score: 1

      Sorry, I have to go with sirwired on this one. Lobbyists write laws because a single congressman is not much more informed about the variety of topics he or she has to know about than a similarly well-read bystander. They have a staff, but it is not as large as you think, and they frankly are not experts in 95% of the fields that they have to legislate from. So where do you get technical information? People who are professionals. Thing is... everyone who is a professional is busy actually working at their jobs, and what's more, they probably have their own biases based on more profits for their own company. Hell, I'm not in love with my corporation necessarily, but I know what sorts of improvements are going to get me a bonus, or at the very least, make it easier to do my job. What do you think I am going to favor in my recommendations? If I have integrity, I may well point out the other options, but really, just how much do you expect out of people?

      The problem is very simply this. The government is too big. This isn't a rant because I am afraid of "teh socialism", it's because it is being used well beyond it's capability to service it's responsibilities, and we keep tacking on more shit every year. When outside forces are writing the bills for your legislators, it means that your legislators are far out of their level of competence. And as long as we keep electing people based on a grouping of people in a very large geographic area, who can and must legislate on everything from high-energy physics, to finance, to health care, what do YOU think is going to happen?

  33. We should seize infrastructure via Eminent Domain by Anonymous Coward · · Score: 0

    We should seize infrastructure via Eminent Domain and turn it into co-ops.

    Companies should be able to own web sites but not the wire, fiber or frequencies everyone needs to use.

    The government siezes people's houses, land and property 'for the common good' on a regular basis.

    We should do the same to all natural monopolies and obstructionist patent and copyright hoarders.

  34. You didn't answer my question by sirwired · · Score: 1

    So who exactly is supposed to write the bills?

    And where in my post did I say anything about "corporate rights"?

  35. Their job is to vote on the bills by sirwired · · Score: 1

    We vote in representatives to vote on bills. They are supposed to use their judgement as informed citizens to decide if a bill meets the interests of his/her constituents. They are supposed to be making their best guess, just like we rely on citizen juries to evaluate evidence to make an informed judgement during trials.

    The bills need to come from somewhere, and unless we have a congress packed with lawyers, those bills have to come from somewhere other than individual legislators.

    Yep, the whole system is rife with holes, bias, and potential for corruption, but I have not yet seen an alternative system that's any better.

  36. You eat food. The people who make it need 9-1-1. by tepples · · Score: 1

    I thought there was a national security interest in providing communication service, even just 9-1-1 emergency service, to the people who grow the food that you eat.

  37. A question of whence by tepples · · Score: 1

    The bills need to come from somewhere

    Then why do the bills so much more often come from entities that seek monopoly rent than from entities promoting the public interest?

  38. Add capacity and avoid a single point of failure by tepples · · Score: 1

    Running cable multiple times is just ridiculous. You want every company to repeat what the previous company did, really?

    We already have a Shell gas station. Why add a Marathon across the street? (Answer: To add more capacity and avoid a single point of failure.)

    We already own one hard disk. Why add more in a RAID? (Same answer.)

  39. Natural monopoly myth is busted by tepples · · Score: 2

    The idea is that it is wasteful for multiple companies to run multiple cables which do the same thing

    And this idea has been debunked. It's no more wasteful than putting more disks in a RAID is wasteful. The waste comes from local governments' inability to efficiently price access to tear up the roads (PDF).

    1. Re:Natural monopoly myth is busted by Anonymous Coward · · Score: 0

      No.. it is not debunked. I've read the PDF. It has some nice points. But its major failing is that when it talks of benefits to the consumer, it talks only of price for service. It speaks nothing of the costs the government shouldered for the people (and passed on to them by taxation) in order to get to those many competitors that drive down price. Any resource that is under priced will be overutilized. Which.. the pdf acknowledges. But then doesn't address it with respect to the main thrust of the paper.

      It also acknowledges that "excessive duplication" wouldn't occur with optimal pricing.. but then.. ANY duplication is unlikely to occur with optimal pricing, because tearing up streets and the like has direct costs, plus (economically speaking) lost revenues, plus compensation for drivers in excessive traffic, plus compensation for noise pollution, and on and on. And you get to incur them every time a new competitor wants to break in. If you don't do all that, then you have not arrived at the optimal price. And doing all that is pretty expensive. Because you must account for each individual's preferences and tolerances for traffic, noise, whatever. Anything less and you are under or overpricing the install costs. Which results in inefficiencies that can only be sort of made up for over time ... assuming the company that incurred the costs can survive competition.

      But the tl;dr: governments can't efficiently price rights of way, because its expensive and difficult to do so. Because its expensive and difficult (read: not feasible at this time) it doesn't happen. When it is not feasible to price a resource, it can be practical to eliminate a market rather than proceed on a free market basis, when the required assumptions of free markets are being violated.

  40. Agribusiness by tepples · · Score: 1

    I thought the organizational structure of growing food in the developed world had changed so much since the days of the idyllic family farm that farmers could get long runs of fiber to the premises subsidized by their agribusiness bosses.

    1. Re:Agribusiness by Chrontius · · Score: 1

      Didn't you read the article? It's outright illegal to lay your own cable in some of these places.

    2. Re:Agribusiness by tepples · · Score: 1

      Then please allow me to rephrase:

      I thought the organizational structure of growing food in the developed world had changed so much since the days of the idyllic family farm that farmers could get long runs of fiber to the premises, laid by whatever organization is authorized to lay fiber, subsidized by their agribusiness bosses.

      Or are you claiming that the article states that no organization at all is authorized to lay fiber?

  41. Re:This will pass almost for sure by dotHectate · · Score: 1

    As a Kentuckian I'm extremely disappointed that the sponsor would even think something of this nature is a good idea. As a Republican (technically) I'm noticing that I'm less and less "in line" with the party as time goes on. It's especially noticeable to me the last election here... I need a party that's young and flexible enough to be smart about technology, strong on individual rights and liberties (but balanced with individual responsibility!), and that has the teeth to take on bonehead moves like this. Anonymous doesn't count.

    --
    Patience is a virtue, but haste is my life.
  42. Route around damage by tepples · · Score: 1

    Why can't the telco install redundant fiber so that the network can treat damage as damage and route around it?

  43. Market monopoly begets coercive monopoly by tepples · · Score: 1

    But with a market monopoly, you can have another provider (though you are not entitled to it, as many assume). With a coercive monopoly, you cannot even have that.

    There really isn't much of a difference considering how a successful market monopolist will engage in rent-seeking lobbying in order to have the government grant it a coercive monopoly.

    1. Re:Market monopoly begets coercive monopoly by temcat · · Score: 2

      If government can be bought, the basic problem to solve lies with the government, not with the buyer.

    2. Re:Market monopoly begets coercive monopoly by thejynxed · · Score: 1

      They don't even have to go that far. They just offer enough incentives for customer retention purposes or lower their prices enough that none of the competition can even get a foothold in the area.

      Besides regulatory issues, this is the entire reason you see companies like Time Warner and Comcast "trading" operating districts (to give eachother more contiguous and profitable zones) with one another without even considering offering them to a "no-name" company.

      --
      @Mindless Drivel: 100% of Twitter posts ever Tweeted.
  44. I Live in Kentucky by Anonymous Coward · · Score: 1

    I live just outside of Louisville, Kentucky @23 miles from downtown. I still don't have access to any sort of broadband besides satellite Internet @$65 a month. Cellular service is horrible in my area, Dsl won't run out here and neither will cable. With no plans in the future to do so. If the goverment has pushed in the past for LAST MILE coverage I've sure not seen it. I live on a major thoroughfare have DSL @3 miles away in one direction and Cable within 2 miles the other. But yet neither plans on running any lines at all my direction INBETWEEN..WTF

  45. Re:You eat food. The people who make it need 9-1-1 by will_die · · Score: 1

    And this proposal does not change that, it only allows changes in the event there are so few people in an area it is not practical to run wire and there are alternative methods available to people.

  46. No Land Lines? by Khyber · · Score: 1

    Okay, that's fine. Give up your rights to those landlines and abandon all infrastructure for the people to take over and maintain. You get wireless in exchange for all your wired infrastructure.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  47. Separation of conduit and utilities through it by tepples · · Score: 1

    Ideally, increasing prices charged to utilities for access to rights of way would result in a more efficient business model, where companies tear up the roads once to pull conduit and then sublet the conduit to utilities.

  48. Re:They are right, stop running out-dated technolo by Anonymous Coward · · Score: 0

    If they're putting in the fiber on the same right-of-way, they should have to share it similarly.

    AC

  49. The Phone is Obsolete by bobs666 · · Score: 1

    The time of the Phone is over.

    And the Monopoly on the Internet must end.

    The FCC must free up Radio bandwidth for open communications. Think open roof top router grid, with many Ma and Pa ISP's to pick from.