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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."

19 of 157 comments (clear)

  1. I have absolutely nothing to say except by Anonymous Coward · · Score: 4, Insightful
  2. 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: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.

  4. 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!
  5. 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
  6. 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?

  7. 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."
  8. 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 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.

    2. 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.

  9. 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).

  10. My opinion? by Anonymous Coward · · Score: 3, Insightful

    Fuck you too, AT&T!

  11. 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
  12. 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.
  13. 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.

  14. 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.

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