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As Big As Net Neutrality? FCC Kills State-Imposed Internet Monopolies

tedlistens writes: On Thursday, before it voted in favor of "net neutrality," the Federal Communications Commission voted 3-2 to override state laws in Tennessee and North Carolina that have barred local governments and public utilities from offering broadband outside the areas where they have traditionally sold electricity. Christopher Mitchell of the Institute for Local Self-Reliance said the move was as important for internet competition as net neutrality: "Preventing big Internet Service Providers from unfairly discriminating against content online is a victory, but allowing communities to be the owners and stewards of their own broadband networks is a watershed moment that will serve as a check against the worst abuses of the cable monopoly for decades to come." The laws, like those in over a dozen other states, are often created under pressure from large private Internet providers like Comcast and Verizon, who consequently control monopolies or duopolies over high-speed internet in these places.

55 of 234 comments (clear)

  1. Well done FCC by Anonymous Coward · · Score: 5, Insightful

    Good on you FCC!

    1. Re:Well done FCC by Darinbob · · Score: 5, Funny

      It's a slippery slope, soon the railroad barons will have to allow anyone to transport on their tracks!

    2. Re:Well done FCC by bjwest · · Score: 3, Insightful

      If we can get the content providers and ISPs separated, like it should be, maybe we'll see competition like we had in the days of dial-in. Oh to have the option to choose my ISP based on MY needs and desires, rather than either DSL or Cable, or only one of them and no other choice.

      That should be our next goal. Split the content providers and ISPs into two separate entities.

      --

      --- Keep the choice with the user..
    3. Re:Well done FCC by witherstaff · · Score: 2

      I agree - all the tax money put those lines in and the baby bells are a government mandated monopoly. A level playing field would be amazing. When the FCC rolled back many of the '96 telco reform act the small ISP could no longer compete. Wholesale rates were higher than the telco was offering retail rates to the end user.

      For a good first step how about the telco's having to live up to their $400 billion in broken contracts. One agreement had every house in NJ to be on fiber by mid 2000s. http://newnetworks.com/bookofb...

    4. Re:Well done FCC by Gr8Apes · · Score: 3, Insightful

      This is a point that's been stated over and over, we finally got part one: net neutrality. Part 2 is partially here, with the banning of those exclusive monopoly cabling deals. Now if the tax payer paid for cabling can be turned over to the municipalities, we can finally get to a point where your cable is essentially locally owned, and the services you may desire, email, web hosting, TV stations, etc, can be provided by whom ever you choose.

      --
      The cesspool just got a check and balance.
  2. One Word ... by anagama · · Score: 2

    Finally!

    (actually, one word is impossible due to the lameness filter, and honestly some other words would be good, like: hahaha, die bastards die, suck it, etc. etc.)

    --
    What changed under Obama? Nothing Good
    1. Re:One Word ... by Black+Parrot · · Score: 3, Funny

      actually, one word is impossible due to the lameness filter

      Maybe we can get the FCC to take that on next!

      --
      Sheesh, evil *and* a jerk. -- Jade
    2. Re:One Word ... by NoNonAlphaCharsHere · · Score: 5, Insightful

      The irony of your post vs your sig is delicious. Meanwhile, I can't help wondering how long it will take some future Republican administration to unroll this, so the big ISPs can go back to rent-seeking.

    3. Re:One Word ... by ShanghaiBill · · Score: 4, Insightful

      I can't help wondering how long it will take some future Republican administration to unroll this, so the big ISPs can go back to rent-seeking.

      That is unlikely. There is rarely a ground swell of support for anti-monopoly actions, such as NN and this ban on bans, because the public is not aware of how much they are harmed by rigged markets. But once the monopoly is broken, people will be much more opposed to reinstating it.

    4. Re:One Word ... by Luckyo · · Score: 5, Insightful

      One sentence: Now you actually have a chance to have a decent internet service without massively overpaying for it in US.

      It's going to be interesting to see how quickly municipal internet in US can actually challenge incumbent monopolies and force them to compete on quality and price.

    5. Re:One Word ... by NoNonAlphaCharsHere · · Score: 3, Insightful

      Nah. Lots of corporate campaign contributions, a few Federal lawsuits, and then there'll be a lot of sound bites about "getting the government off our backs" and "deregulation" and "states rights" and hey presto! we'll be back to monopolistic rent-seeking before you know it.

    6. Re:One Word ... by sumdumass · · Score: 2

      Actually, the FCC basically wrote the lawsuit with all it's work on the internet being an information service or an enhanced service prior to 96. I doubt the FCC will have to wait until republicans get in power before having to toss the title 2 regulation over the internet.

      It is important to note, the FCC has never until recently held any position that the internet was anything other than a title 1 enhanced or information service. Even the brief period of time in the 90's when it became a title 2 classification due to court action that was overturned on appeal, they wrote legal briefs and filed them with the courts proclaiming the mistake in title 2 classification.

      Here are a few notable quotes from one of the reports I have have been looking at.

      i]t
      certainly was not Congress's intent in enacting the supposedly pro-competitive, deregulatory 1996 Act to extend the burdens of current Title II regulation to Internet services, which historically have been excluded from regulation."

      and

      Senators Ashcroft, Ford, John F. Kerry, Abraham and Wyden emphasize that "[n]othing in the 1996 Act or its legislative history suggests that Congress intended to alter
      the current classification of Internet and other information services or to expand traditional telephone regulation to new and advanced services." 75 Like Senator McCain, they state: "Rather than expand regulation to new service providers, a critical goal of the 1996 Act was to diminish regulatory burdens as competition grew."

      http://transition.fcc.gov/Bure...

      As much as something needed to be done about the state of internet, I don't think the FCC's move was the right thing and I'm pretty sure it will not pass the court's especially seeing how they are bragging about doing it to get around a failed court challenge to something previously. I can't see the courts siding with the FCC if there is any ambiguity at all.

    7. Re:One Word ... by Darinbob · · Score: 2

      It's hard to say though. There's enough of a libertarian leading in the party now that I don't think the pro-corporate faction could get away with it. They're essentially a minority in the party, with enough clout to stop or delay bureaucrats but not enough to add their own regulations (ie, barring municipal utilities is adding regulation, while allowing them is more hands-off, and the hypocrisy would be obvious even to factions who normally only care about social issues).

    8. Re:One Word ... by Darinbob · · Score: 5, Interesting

      Municipal electric utilities have sprung up for some time, but they're still relatively uncommon despite the benefits. I suspect it will be similar for internet utilities.

      And of course, if Comcast charges $75/month and the city charges only $25, some people will still whine about it because it's the evil government charging the $25.

    9. Re:One Word ... by anagama · · Score: 2

      Yeah -- Obama being basically a GOP posterchild in every other policy -- how ironic. After 8 years, fucking finally he does something a liberal could be proud of.

      --
      What changed under Obama? Nothing Good
    10. Re: One Word ... by anagama · · Score: 4, Informative

      Yeah -- subpar. Every time I ask FedEx or UPS to mail a letter for me for less than 50c, they laugh.

      --
      What changed under Obama? Nothing Good
    11. Re:One Word ... by SEE · · Score: 4, Informative

      Given the 8-1 decision in Nixon v. Missouri Municipal League in 2004, it's essentially certain that this FCC action will be overturned by the courts. The FCC doesn't have a legal leg to stand on.

      In that case, the Supreme Court ruled that federal law did not and could not preempt a Missouri state law that prohibited municipalities from providing Internet service. Of the eight-member majority in that case, five (Kennedy, Ginsburg, Breyer, Scalia, and Thomas) are still on the court.

    12. Re:One Word ... by Maxo-Texas · · Score: 2

      Not as long as John Oliver is on the job keeping them honest. Hard to believe he's accomplished so much so far with only 15 minutes a week dedicated to examining one issue in depth.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    13. Re:One Word ... by Anonymous Coward · · Score: 2, Insightful

      That was before Title II. Now they actually have the authority.

    14. Re: One Word ... by Anonymous Coward · · Score: 3, Insightful

      If access to the World Wide Web and Internet doesn't qualify as interstate commerce then nothing does.

    15. Re: One Word ... by Anonymous Coward · · Score: 3, Insightful

      FedEx et al would undercut the prices and only take the bigger cities where it costs less on average to post a letter. USPS cannot refuse to take a letter for the same price from Podunk to Notown all the way across the country. So if the private industry want to play, they'd need to be forced to offer a universal postal service just like USPS. Which would be decried by you and the one you quoted as "bad government regulation interfering with private industry!". But without that, either

      a) you have no postal service in smaller towns (no demand on USPS to offer a service)
      or
      b) no genuine market rate for delivery, since it won't include costs of universal postal service amortization.

      the first is unfair on the people, the second is not proving that private industry has any ability to offer a cheaper and more efficient service, since they can avoid some of the costs of service when compared to the governmental service, which is unfair on the government. Remember, governments are made of people working there too, you know, just like corporations.

    16. Re:One Word ... by unitron · · Score: 4, Insightful

      Allowing the FCC to nullify state law sounds pretty damn outrageous. I.E. it has Barack Obama's fingerprints all over it and deserves to go down in flames in the courts. As for allowing towns to set up their own ISP's, I don't see a problem with it as long as the town citizenry gets a vote and they don't go deep into debt and ask to get bailed out by the state later. What towns ought to do though is make it possible for companies to build or improve their networks, something the FCC can't pretend to have any control over.

      Actually the FCC is preventing states from nullifying the will of municipalities.

      Make no mistake, these laws, no matter what rationales are offered, are only about protecting outfits like Comcast and Time Warner Cable from competition, and keeping certain areas reserved for them until they feel like getting around to providing service in them.

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

    17. Re: One Word ... by sumdumass · · Score: 3, Informative

      Even if it is interstate commerce, the constitution says congress has the power to regulate it not some extra legislative commit or department. It doesn't resolve the need for an act of congress to create the regulation or even pass the standards for the regulation to a department created for that reason. And there lays the problem, the FCC has openly and often admitted that congress never intended the FCC to regulate the internet in the ways it is trying to do. Congress has never given the FCC the power to create laws or rules for existing laws that would allow this to survive a constitutional challenge in court.

    18. Re: One Word ... by everett · · Score: 2

      You mean an act of congress like the Communications Act of 1934?

      --
      Sig withheld to protect the innocent.
  3. cant lie by ganjadude · · Score: 5, Insightful

    when we all found out who was taking over the FCC, I was terrified. Former cable lobbyist, now in charge of the group intended to regulate the same people. But it really looks like wheeler may be the right man for the job

    --
    have you seen my sig? there are many others like it but none that are the same
    1. Re:cant lie by Luthair · · Score: 5, Interesting

      Oddly parts of his background were overlooked by everyone. He was CEO of a small ISP at one point and was involved in tech startups until the 90s.

    2. Re:cant lie by CaptainDork · · Score: 2

      Or, even more interesting, we can go back and determine the true colour of the dress.

      --
      It little behooves the best of us to comment on the rest of us.
  4. Yay! by Black+Parrot · · Score: 4, Funny

    Up with service! Down with monopolies! Up with net neutrality! Down with regulation! Up with Pluto! Down with Kim Dotcom!

    Wait a minute - Today's stories leave me feeling edgy and confused.

    --
    Sheesh, evil *and* a jerk. -- Jade
  5. Great News by SuperKendall · · Score: 4, Interesting

    I'm still dubious about the end effect of net neutrality regulations being passed (remember that none of us have seen the actual regulations to take effect, and none will until they are finalized).

    That said, the real road to true Net Neutrality is and always will be in allowing real competition for your ISP provider, and that's the kind of thing that this allows for. If a community cannot be well served by a "real" networking company it makes no sense to block them from taking matters into their own hands.

    So I applaud this action, I just wish they would be open in other regards rather than limiting.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  6. Re:Authority by Anonymous Coward · · Score: 2, Insightful

    who the fuck cares?

  7. Re: Systemd, for or against? by jd · · Score: 4, Funny

    As far as I know, Systemd has no capacity to think and therefore has no opinion on net neutrality.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  8. Re: 0pointer's 30 myths about systemd by jd · · Score: 4, Insightful

    Myth: Anyone gives a damn about factually dubious rants.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  9. Re: Authority by jd · · Score: 2, Interesting

    That is a good question. The last time the courts ruled on this, the ruling was that the FCC had ceded power and couldn't claim it back without the will of god. Or Congress, or something.

    Personally, I'm all in favour of Thor turning up to the Supreme Court, but he probably wouldn't be allowed in on account of not having a visa.

    --
    It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)
  10. Re:Oh joy. by Anonymous Coward · · Score: 4, Insightful

    Speaking of roads and public schools...

    The biggest wastes of money when it comes to roads and public schools is the enrichment of private entities who have found a way to get themselves access to the public purse.

    Same with the corrections industry.

  11. Re:Follow the money by Luckyo · · Score: 2

    Google et al likely figured out that instead of public lobbying, they have to do private lobbying. I.e. less publicity, more favours exchanging hands with important figures in government bureaucracy.

  12. Even bigger.... by Dega704 · · Score: 3, Insightful

    The net neutrality vote gets a lot more attention, but this is even more important IMHO. Net neutrality wouldn't even need to be enforced by the FCC if there were sufficient competiton.

  13. Re:Oh joy. by Luckyo · · Score: 5, Insightful

    Not really. I'm from a socialist country, and on of the key aspects to our prosperity and competitiveness is enabling private entities to get to compete for and win profitable infrastructure contracts.

    This is because private contractors bring significant amount of expertise and capability that government would have to build from ground up without them, as well as force costs down through competition. Problems only arise when said private contractors become big and powerful enough to corrupt those making decisions behind these projects to favour them in various ways.

    It's another one of those "capitalism works really well as long as it is properly managed and doesn't get big enough to corrupt powerful entities" moments.

  14. Re: Authority by Jane+Q.+Public · · Score: 5, Interesting

    Does the FCC even have the authority to do that? Under what legal theory does an unelected federal regulatory commission have the authority to overrule state government laws on matters of state government interest? Don't get me wrong, I'm glad to see such laws go, as they're a major competition inhibitor, but how does the FCC have any authority in this?

    Congress has clear authority to regulate interstate commerce, under the Constitution. Unlike some other things Congress has tried to regulate, it is very clear that the Internet is interstate commerce.

    Having said that, the question that remains is whether Congress can delegate their lawmaking authority to some government bureaucracy. The correct answer to that question is probably no. But I know there are many people who would argue that point.

    The last time the courts ruled on this, the ruling was that the FCC had ceded power and couldn't claim it back without the will of god. Or Congress, or something.

    Not even close. The Supreme Court ruled that the FCC could not impose the rules it had tried to impose, BECAUSE it had not classified internet companies as Title II common carrier communications companies. So what the FCC did here, quite properly (if you accept that they have any authority to do it at all), was to re-classify internet providers as Title II common carriers.

    There are many implications to this that people haven't been discussing much. It depends on the exact language of the rules when they go into effect. But the OLD rules for Title II common carriers stipulated that your communications can't be legally "intercepted" without a warrant. So deep packet inspection by ISPs is probably out the window.

  15. Something is horribly wrong.... by Lumpy · · Score: 2

    The government is acting with sense and doing so in a honest way that fair to citizens.

    This is not right, so I firmly believe that the world is coming to an end.

    --
    Do not look at laser with remaining good eye.
  16. Re: Authority by Zontar+The+Mindless · · Score: 2

    Personally, I'm all in favour of Thor turning up to the Supreme Court, but he probably wouldn't be allowed in on account of not having a visa.

    Citizens of the Nordic countries don't need visas to visit the US. So bring him on.

    --
    Il n'y a pas de Planet B.
  17. Republicans are totally out to lunch on this issue by Applehu+Akbar · · Score: 2

    And I speak as a Republican. Unless there's some outrageous hidden agenda yet to emerge, net neutrality just means that Internet service over cable, because it is in many places a natural monopoly, is henceforth to be treated as a utility, like your electrical service. How you use the watt-hours you buy for your home is your own business, and we are all more free if the same applies to your Internet feed. Regulation of business is something we by instinct would rather not have, but if you live in an area where Comcast is the only game in town, treating it as a utility is more palatable than giving a single company full control of your access to the Internet.

    Whether to build municipal broadband is a decision that any locality should be allowed to make for itself. Because wired Internet service so often is a natural monopoly, there are all kinds of situations in which towns or villages or even small neighborhoods find themselves cut off from any service by a company that simply does not feel it worthwhile to extend service to that market. Value decisions like this should be the company's right, but has no business standing in the way of any group of users who wish to band together to organize service of their own.

  18. Of Two Minds on This by wisnoskij · · Score: 2

    While it would be great if the government offered Internet and gave many an option other than Comcast, I could see it going pretty Orwellian pretty quickly. The government offering its own service pretty much guarantees that they will subsidize the service more than they already subsidize ISPs. Making it impossible to compete. And the government would not have to pass any data retention laws if they already handled everyone's internet data. There is a point to not allowing the government to compete with businesses, and there are benefits to keeping the lawmakers and enforcers one degree of separation away from citizens.

    --
    Troll is not a replacement for I disagree.
  19. Re: Systemd, for or against? by dissy · · Score: 2, Funny

    As far as I know, Systemd has no capacity to think and therefore has no opinion on net neutrality.

    Three days ago the Systemd-UpdateAgainstYourWillD automatically installed SystemD-AiD, which is a requirement to even boot the kernel because it was deemed no human being ever has or ever could be capable of the overwhelming task of "run some programs", which of course includes programs written by humans.

    Two days ago there were promises SystemD-AiD would also gain enough intelligence to read corrupted syslogs, while insulting your petty human intelligence via way of SystemD-FortuneD, and injecting them into all outbound emails sent from your username via SystemD-SpammerD.
    It was also rumored to soon be capable of washing your dishes, since no init system wants to start dirty programs or use plastic fork()'s.

    Yesterday they canceled the dish washing patch based mainly on a usenet poll where "fuck systemd!!!" was interpreted by a similar AI as voting against the feature, thus canceling the patch due to overwhelming demand.

  20. Re:Authority by sjames · · Score: 2

    The federal government has the authority to regulate interstate commerce, which includes telecommunications. The FCC charter tells it to use that power for the public interest.

  21. And blocked in court in 3, 2, 1 . . . by SEE · · Score: 2, Interesting

    As a constitutional matter, municipalities do not have any independent existence; they are organs of the state governments. Municipal governments only have whatever powers states choose to give them, and the federal government may not commandeer a state government. So if a state chooses to deny its municipalities the authority to sell Internet access (or sell it below a certain price), then no declaration from the FCC can give the municipality that power, nor require the state to give a municipality that power.

    So, all this vote means is the FCC majority has decided to waste a bunch of taxpayer dollars losing a lawsuit.

    1. Re:And blocked in court in 3, 2, 1 . . . by SEE · · Score: 2

      Just like states are only part of the country?

      No, not "just like" that at all. There are three basic classes of entity in US constitutional law - the Federal Government, the states, and individual people. States are not organs of the Federal Government, but legally separate entities with independent rights and powers. On the other hand, municipalities are mere organs of the state.

  22. Re: Authority by CaptainDork · · Score: 2

    Yeah, he'd be a Thor loser.

    --
    It little behooves the best of us to comment on the rest of us.
  23. Re:Republicans are totally out to lunch on this is by the_bard17 · · Score: 2

    Got a reference to that statement anywhere? I haven't seen one.

  24. Re: Authority by jader3rd · · Score: 3, Interesting

    the question that remains is whether Congress can delegate their lawmaking authority to some government bureaucracy. The correct answer to that question is probably no.

    If that were true the Treasury (part of the Executive branch) wouldn't be able to issue debt. Up until WWI Congress decided how much debt to issue. During WWI a lot of expenses started adding up (tanks, planes, etc) and Congress found debating how sell bonds to be boring. So they gave that responsibility over to the Treasury and said "If we've made it part of a law and it requires money, issue as much debt as needed to pay for it". Later, they imposed a "debt limit", but it's odd to impose the debt limit on the Treasury given the fact that the Treasury is only finding ways to fill in the funding gaps laid out by Congresses budget.

  25. Re: I hope by kenh · · Score: 2

    A municipal Internet service, funded with tax-payer dollars, what could go wrong?

    Gee, there isn't any chance some activist groups would file suits forcing the government to filter out hate speech, pornography, extreme violence, gun sales, etc on their "tax-payer-funded Internet"? No, that would never happen...

    Oh wait, we already do that on taxpayer-funded Internet in our schools and libraries!

    --
    Ken
  26. Re: Authority by dywolf · · Score: 3, Informative

    once again: you are wrong about independent agencies.
    we've been through this at least a dozen times.
    Congress absolutely has the power the to delegate, the same as the President does.

    Just as no one could ever reasonably the President to personally oversee the enforcement of the entire body of law without delegation, no one could ever expect the Congress, 535 people, to personally be experts at every single topic and perform all necessary oversight. It take an entire agency to keep an eye on Wall Street, the SEC. It takes an entire agency to study the environment we live in and forge compromises between the needs of the public and the needs of industry, the EPA. I could run through the entire list, but there should be no need.

    The only people who argue the point are unreasonable people who think a return to the agrarian society run by educated scholarly farmers envisioned by Jefferson is still a real possibility, ignoring all else that has happened in the past 200 years. The Constitution doesn't explicitly state that Congress can delegate, but it doesnt explicitily state a lot of things that we take for granted. The Founders were a lot of things, and varied a lot in ideology and opinion on strong or weak the government should be. But one thing they were not was stupid. And the idea that they expected us to adhere to the document like a holy writ verbatim for eternity was not part of the plan, as evidenced by the many clauses and phrases that are vague generalities and obviously exist solely for the purpose of expanding on the parts that are spelled out.

    Parts like (and this is not an exhaustive list) the 9th Amendment, the process for amending the document, and most relevant to this topic, the Necessary and Proper Clause, also known as the "basket clause". Article 1, Section 8, Clause 18:

    p>The Congress shall have Power ... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

    IE, whatever it takes to run the country and enact the peoples will, they can do. Case closed.
    And there was a case, and it wasn't recent. McCulloch v Maryland, in 1819, a time when many of the Founders were themselves still alive, if not for much longer. And in that case the Courts established quite clearly that:

    "First, the Constitution grants to Congress implied powers for implementing the Constitution's express powers, in order to create a functional national government. Second, state action may not impede valid constitutional exercises of power by the Federal government."

    as indeed it must. Explicit powers are no good if they cannot be implemented due to the technicality that the prerequisites were not also explicitly stated. Again: the Founders were not stupid, but to take the opposite interpretation, an interpretation you seem to believe, is to imply that the Founders were in fact stupid.

    --
    The guy who said the election was rigged won the presidency with the second-most votes.
  27. Re:A different take on this by serviscope_minor · · Score: 2

    That's bullshit, because the ISPs sold "all you can use" plans, then failed to deliver. The only reason the so-called "cost shifting" went on is because the ISPs outright lied about what they were selling to consumers. To imply that Netflix allowing customers to use what they've paid for is somehow wrong is just plain wrong-headded.

    You're basically blaming Netflix for the ISPs mis-selling a service.

    --
    SJW n. One who posts facts.
  28. Re:A different take on this by Carewolf · · Score: 2

    That's bullshit, because the ISPs sold "all you can use" plans, then failed to deliver. The only reason the so-called "cost shifting" went on is because the ISPs outright lied about what they were selling to consumers. To imply that Netflix allowing customers to use what they've paid for is somehow wrong is just plain wrong-headded.

    You're basically blaming Netflix for the ISPs mis-selling a service.

    It is actually worse. The product they sell is the Internet and specifically all the content on the internet and netflix is a major provider of internet content. Their argument is blaming Netflix for giving them business... Think about that.

  29. FCC CREATES Internet monopolies by Brett+Glass · · Score: 2

    Actually, the FCC's action will have exactly the opposite effect. I own and operate a small, competitive ISP, and am quite willing to (and capable of) going up against any competitor on a level playing field. But I simply wouldn't enter any market where the city was providing service. Why? Because the city would engage in all of the following anticompetitive and predatory practices:

    * The city would completely control my access to rights of way and pole attachments, and would be motivated to keep me from getting that access or make it expensive;

    * I would be taxed and the taxes would be used to subsidize my competitor;

    * The city would engage in horizontal monopoly leverage from its other monopoly businesses (trash, water, sewer, and in many places energy) and would enjoy cross-subsidies from them; for example, it wouldn't have to build a new billing system but could use its existing one;

    * The city could also use its ability to tax, and bonding authority, to obtain capital for the buildout at bargain rates;

    * The city, with its deep pockets and by expending some of that capital, could engage in predatory pricing, offering its service below cost due to taxpayer subsidies. It could do this at the outset, to take customers away, or possibly permanently;

    * The city, because it provided those other services, would GET PAID more easily than I would because users wouldn't want their water, etc. cut off if they didn't pay the bill;

    * The city would know when both owner-occupied and rental real estate was turning over (because of changes in the party being billed) and so could always sell to people as they moved into a new home before they would have a chance to consider my service;

    * The city ISP would get the lucrative business of the city itself (eliminating one of the largest potential customers), as well as that of other government entities such as the county government and state government offices; and

    * The city, under the FCC's new Title II regime, could demand franchise fees from me that it would not have to pay itself.

    So, if you put yourself in the shoes of a hard working local ISP (which I am), or of a customer who wants choice, this no longer seems like such a good idea. Any ISP entering the market would have to fight an uphill battle against City Hall. So, new ISPs will not enter the market and existing broadband providers will have a strong incentive to pull out, leaving a monopoly. What is needed is FAIR, PRIVATE competition, not the unfair competition that turning unaccountable city bureaucrats loose would bring.

  30. Re:Republicans are totally out to lunch on this is by diamondmagic · · Score: 2

    We don't know what's buried in their 300+ pages of rules, but have you read Title II? It gives the FCC an enormous amount of power, if the Internet falls under it (it doesn't).