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Charter: City Giving Google Fiber Unfair Edge (courier-journal.com)

An anonymous reader writes: Louisville's largest cable and internet provider says the city is giving Google Fiber an unfair advantage, and it wants Mayor Greg Fischer to step in and ease key regulations in the coming weeks. In a July 28 letter, Charter Communications told Fischer the city's separate franchise agreements allow Google to operate under less burdensome rules despite the two companies offering local customers similar services. "There is no justification for different regulatory treatment," said Jason Keller, Charter's government liaison. The letter was addressed to Fischer, the 26-member Metro Council and more than five dozen other mayors representing smaller suburban cities. Charter representatives claim unlike Google, it is obligated to pay money to the city above and beyond the millions in tax proceeds Louisville receives; to provide free internet and cable television to dozens of city-owned buildings; and provide costly government channels, as well as a studio for public access channels. Kellie Watson, Fischer's general counsel, said in a statement that Charter "raised some interesting issues and ideas" but that the administration will need to consult with the county attorney's office given the franchise agreement involves federal regulations.

69 of 110 comments (clear)

  1. The headline should read; by Mr+D+from+63 · · Score: 3, Funny

    Google Ubers Charter.

    1. Re:The headline should read; by Shortguy881 · · Score: 3, Insightful

      While I like Google Fiber, I do agree that Google Fiber and Charter should be playing by the same rules from a regulatory standpoint. Charter service sucks, so Google Fiber will most likely win on its own merit, but this kind of preferential treatment is a bad stance for the city to take.

      --
      Brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants.
    2. Re:The headline should read; by Anonymous Coward · · Score: 5, Insightful

      I don't believe they should play by the same rules. You see, Charter, like cable companies most places in the US, was granted a monopoly by the city for cable services. Nobody else can compete with them in their region. Since Google uses fiber (like telcos use copper or fiber), they CAN compete since they are not granted a city-wide monopoly. If Charter wants to use the same regulatory environment that Google uses then they need to open up their infrastructure to competitors and give up their city granted monopoly. Until they do that - they should operate under different rules. After all those "expensive studios", free access to government buildings, etc. were in return for that monopoly. Give Google a monopoly on the area and you can get concessions like that from them. Until then - Charter should shut up.

    3. Re: The headline should read; by Anonymous Coward · · Score: 2, Informative

      It's not really the same, cable and phone companies built their nerworks with your tax dollars. Google is paying their own way.

    4. Re:The headline should read; by TemporalBeing · · Score: 1

      You see, Charter, like cable companies most places in the US, was granted a monopoly by the county for cable services.

      FTFY

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    5. Re:The headline should read; by Letophoro · · Score: 1

      Depending on where you live, city is the appropriate descriptor. Anecdotally, the city next to mine has a different cable company than the ones (I actually have more than one) available to me. Both cities are in the same county.

    6. Re:The headline should read; by Shortguy881 · · Score: 1

      That's not how it works, but its cute that you think so. It's a contract on exclusive rights to the current wire to the home (given to the cable company for installing and maintaining the wires). Any cable operator can come in and run their own wires on top and compete. This is really expensive to do, so most companies don't bother with it except in very dense urban areas, as it can be worth it. This is exactly what google is doing. As the new wires still fall under city/county control, Google has to enter into a similar contract for their infrastructure. While I agree there can be minor differences between the Google and Charter contracts, it is government cronyism to favor one so heavily.

      --
      Brilliance without wisdom, power without conscience. Ours is a world of nuclear giants and ethical infants.
    7. Re:The headline should read; by StikyPad · · Score: 1

      In most cases, that's correct. It's also correct that cable companies typically solicit and receive "incentives" (a lot of money) from the county or independent city in which they install, offsetting the installation expense. This makes it a very low-risk proposition, with the only variable being subscriber interest rather than direct competition. The reason that cable companies can demand this is because one county or city did it initially, effectively making counties compete with each other for attention. It was a stupid thing to cave on, and not in the long term best interest of local governments or their constituents, if alternative models are any indication, but that's where we are.

  2. This will get interesting... by KenHansen · · Score: 3, Insightful

    Because the city offered Charter a monopoly on certain services in the city, the city was able to demand certain concessions from Charter - by letting Google break Charter's monopoly, the city can no longer demand those concessions... Bye-bye public access, bye-bye free internet for city offices, schools, etc.

    1. Re:This will get interesting... by dex22 · · Score: 4, Informative

      Charter provides television to the city neighborhoods. It is incumbent on them to provide public access because of those television services. All of those concessions except internet service are still for unique services Charter is exclusively providing. Google doesn't do broadcast television.

    2. Re:This will get interesting... by Holi · · Score: 3, Insightful

      "Google doesn't do broadcast television."

      It sure looks like they do in Kansas City

      https://fiber.google.com/citie...

      --
      Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
    3. Re:This will get interesting... by oh_my_080980980 · · Score: 3, Informative

      And yet not in other areas: "Service not available in all areas" https://fiber.google.com/citie...

    4. Re:This will get interesting... by stephanruby · · Score: 3, Insightful

      Google has public access. It's called youtube. Anyone can upload videos to it.

      It's far better than public access cable if you ask me.

    5. Re:This will get interesting... by squiggleslash · · Score: 5, Insightful

      Charter is a Cable TV provider, and were as such when they got their charter. Google is an ISP. The fact Charter has decided to compete in the space Google is also entering doesn't mean previous obligations concerning the provision of TV services are no longer valid.

      --
      You are not alone. This is not normal. None of this is normal.
    6. Re: This will get interesting... by KenHansen · · Score: 1
      Cable companies are being forced to not only dedicate precious channel space to public access (so that town hall meetings and PowerPoint slide presentations can be 'aired') AND provide studio space for production of local access shows.

      BTW, charter also carries YouTube.

    7. Re: This will get interesting... by MitchDev · · Score: 4, Informative

      HAHAHAHAHAHAHAHAHAHHHHHAHAHAHHHA!

      "Precious channel space"? You mean like Comcast with a few hundred channels and tons of channel numbers with nothing? Tons of channels that no one ever actually watches? Channels that charge cable companies to carry them yet if the cable companies don't carry those channels, there's no real way for people to see that channel?

      Silly cable companies, the truth about you and your over-charging is coming home to bite you in the ass. And you deserve every last bite.

    8. Re:This will get interesting... by LWATCDR · · Score: 3, Insightful

      I do not think that public access is in payment for a monopoly but for TV in general. Honestly who cares about public access tv when you could do it all with Youtube today.
      Cable TV is not internet and internet is not cable TV Charter was given a franchise for Cable TV not for internet. They just are just using the same infrastructure for a new profit center.

      --
      See my blog http://ilovecookes.blogspot.com/ for light hearted technical information.
    9. Re:This will get interesting... by sims+2 · · Score: 1

      Unless the concessions were absolutely everyone within city limits gets coverage they were getting screwed in the first place. Otherwise the concessions were just anticonsumer bribes that cost the public more than they will ever know.

      Why would the city need free internet for city offices schools etc? shouldn't they be able to pay the same business class pricing as everyone else. A 50/50Mbps business fiber line costs $157/mo here.

      A school can afford a pair of E-rate T1's but can't afford a much faster and cheaper without subsidy business fiber line?

      What kind of madness is this?

      --
      Minimum threshold fixed. Thanks!
    10. Re: This will get interesting... by MitchDev · · Score: 2

      Oh, and let's not forget cable companies that have two copies of almost every channel. One in the government-mandated "HD" and one in SD, but they still charge you extra to receive HD....

    11. Re: This will get interesting... by ZeroWaiteState · · Score: 1

      Oh boo hoo. I bet if you totalled the cost of the internet services needed by the city, it would be vastly less than the accumulated price difference for the rest of the population due to there being no competition.

    12. Re: This will get interesting... by stephanruby · · Score: 1

      BTW, charter also carries YouTube.

      That's only because of net neutrality.

      Currently, cable companies are fighting to get rid of net neutrality.

  3. Charter is probably right by mi · · Score: 4, Interesting

    The reason our choice of communication-providers is so limited aren't the companies — those are as hungry for our dollars as ever — but the local governments.

    They've created these barriers over the years and were happy to milk them. Now Google comes along and it is cool and persuasive, so, instead of honestly removing the regulatory burdens for all, they find a way to ease them just for one company.

    This is "crony capitalism", which has about as much to do with capitalism, as a guinea pig has to do with pork... Some may even call it Fascism.

    Of course, Charter did not mind the situation themselves — for as long as their de-facto monopoly was not threatened. But we — the consumers — kept losing...

    --
    In Soviet Washington the swamp drains you.
    1. Re:Charter is probably right by fustakrakich · · Score: 1

      This is "crony capitalism"

      Is there another kind? I mean, outside the classroom? You gotta figure that even the voters who always reelect their favorite politicians are also looking for a piece of the action (just bring home the bacon). Cronyism for everybody! Even under communism, without a little lube, nothing would get done.

      --
      “He’s not deformed, he’s just drunk!”
    2. Re:Charter is probably right by mi · · Score: 1

      Is there another kind? I mean, outside the classroom?

      Of course. It is too bad, the US is slowly sliding down on the ease of doing business measures. It was not always that way, and it can get better again. One hopes...

      --
      In Soviet Washington the swamp drains you.
    3. Re:Charter is probably right by DarkOx · · Score: 1

      Which is probably the strongest argument for small government. Most of us collectively realize that given the opportunity the game will be rigged, when faces with the choice as individuals we might even decide to rig it ourselves, so as to bring home the bacon. We need to understand that if we really care about justice and equality for all we need to limit government. We need to rigidly apply the Constitution at the federal level. We need to update our state Constitutions to prevent over reach of state and local governments. If you make government to small to be a worth while crony you don't have this problem.

      --
      Repeal the 17th Amendment TODAY! Also Please Read http://www.gnu.org/philosophy/right-to-read.html
    4. Re:Charter is probably right by fustakrakich · · Score: 1

      It was not always that way

      Is there a specific time when that was so? I will grant that lack of bureaucracy was a hallmark in the "Land of Opportunity"®, but that was during the westward expansion when "business" was more "regulated" by gangsters and grifters, where the rules are much simpler.

      --
      “He’s not deformed, he’s just drunk!”
    5. Re:Charter is probably right by silas_moeckel · · Score: 1

      Most of that is because they are not a cable company. They are providing internet not TV. They money is that like any other new business these days with tax incentives? Free internet to government buildings within their footprint seems like a pretty trivial tack on. A studio thats for TV not internet and frankly they give every 501c company lots of free services that are internet related anyways, besides is it 1985 again you can stream to youtube with a phone most of the barriers to public access level programming are gone.

      --
      No sir I dont like it.
    6. Re:Charter is probably right by fustakrakich · · Score: 1

      We need to understand that if we really care about justice and equality...

      Ah, there lies the rub, wouldn't you agree? The entire burden is on our own shoulders.

      --
      “He’s not deformed, he’s just drunk!”
    7. Re:Charter is probably right by mi · · Score: 1

      Don't forget the unwritten agreements between the cable companies not to expand their services into a competitors region

      Such a collusion would be a major violation of the anti-trust laws. Not that I'd expect a President, who plays golf with cable CEOs to seriously prosecute their companies, but still...

      There's a reason you basically never see cities with multiple big name cable options.

      In my little town Comcast competes with FiOS rather vigorously...

      --
      In Soviet Washington the swamp drains you.
    8. Re:Charter is probably right by guises · · Score: 1

      That's a terrible article. Yes regulations and pole attachment fees create barriers to stringing new cables, but we don't want new cables. Unregulated utility poles look like this. The point of open access is to promote competition over existing cables.

      You can still blame government if you want, but blame them for de-regulating access back in 1996, Of course, they only did so at the behest of industry lobbyists.

    9. Re: Charter is probably right by ZeroWaiteState · · Score: 1

      Anti trust is federal law. If you operate a franchise totally within the borders of a state, then antitrust can't be triggered. This is the reason health insurance is sold on a state by state basis, in order to prevent insurance from falling under antitrust regulation.

  4. Internet Provider vs Cable Provider? by bjwest · · Score: 2

    Doesn't Google provide only internet? Why would they have to provide government channels and public access studios?

    --

    --- Keep the choice with the user..
    1. Re:Internet Provider vs Cable Provider? by oh_my_080980980 · · Score: 3, Informative

      But not in all areas, like FIOS, "Service not available in all areas" https://fiber.google.com/citie... [google.com]

    2. Re:Internet Provider vs Cable Provider? by bjwest · · Score: 1

      I didn't know this, I thought they were strictly ISP.

      --

      --- Keep the choice with the user..
  5. we need of list of cities by "unfair edges" given by smoothnorman · · Score: 3, Interesting

    Just in terms of fiber i'll add: Seattle :: Comcast. They were given assurances that they wouldn't have to compete against any municipal fiber in return for maintaining a paltry "City Channel" (typically channel 21).

  6. Paying "above and beyond" by synapse7 · · Score: 2

    What are we talking here?
     
      It's hard to feel remorse for Charter when I'm paying nearly $200 a month for cable tv and 60mb service, and we don't get all the channels. Probably further unrelated, but charter is still pushing 5mb business accounts around here, what is that?

    1. Re: Paying "above and beyond" by KenHansen · · Score: 1

      How much of your charter cable tv, phone, and Internet bundle goes to content providers? You'd be amazed how much you are paying for some channels, like *all* the ESPN channels, Al Jazerra America, etc.

    2. Re:Paying "above and beyond" by chipschap · · Score: 1

      None of this ever had anything to do with the consumer, other than the billing and collecting part.

    3. Re: Paying "above and beyond" by KenHansen · · Score: 2

      ESPN networks cost $7-8/per month, per cable subscriber... http://www.whatyoupayforsports...

    4. Re: Paying "above and beyond" by MitchDev · · Score: 3, Interesting

      Really, the channels should be paying the cable companies to carry them....without those cable companies, no one would have much access to any of them, so their programming and stupid ads would never get seen...

    5. Re: Paying "above and beyond" by MitchDev · · Score: 1

      Sounds like a RICO suit or something. Really, it's criminal.

  7. Government mandated monopolies and collusion by Zondar · · Score: 1, Insightful

    Government gives a monopoly to an entity (be it themselves or to a commercial entity). Government in return negotiates (strongarms) for 'free' services it would otherwise have to pay for. Monopoly is broken - and people are surprised that the government might now have to pay for those 'free' services?

    Who did they think was actually paying for those 'free' services beforehand? Are they really that blind?

    1. Re:Government mandated monopolies and collusion by Archangel+Michael · · Score: 3, Informative

      Government should NOT be involved in regulation of CATV markets. Instead, it should be in the market of providing the Transport Layer, so that ANY company can use the transport layer (Fiber) to provide services, and let the competition happen there, instead of at the last mile.

      Removing the LAST MILE problem from the equation will basically open up competition and we'll see actual innovation and price changes. And some municipalities are starting to go down this road. Once it is shown to work (sufficiently better than current franchise agreements), you'll see the end of the monopolistic nature of CATV and Internet Service

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    2. Re:Government mandated monopolies and collusion by Archangel+Michael · · Score: 1

      If (big IF) the price drop of CATV and Internet bills was around 50% (guestimate), the Fiber Build-out would be very recoverable in a very short period of time. Additionally, you could tack on a Maintenance Fee to everyone getting service, so that the Fiber Plant and Networking Equipment could be upgraded every 5-10 years or so.

      My guess, is that not many municipalies have the courage to actually take on a major industry and break the unneeded regulation (control) they have over it.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    3. Re:Government mandated monopolies and collusion by MachineShedFred · · Score: 1

      No, I don't need every city man-in-the-middle attacking HTTP to "provide their own."

      Layers 1 and 2 are fine. Let the ISP handle layers above that with their current service offerings and a border router attached to the municipal fiber network.

      --
      Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
    4. Re:Government mandated monopolies and collusion by Archangel+Michael · · Score: 1

      We're talking layer 1 at least, layer 2 (IP) at the Service Provider (e.g. Comcast). With IPV6 it becomes moot point.

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    5. Re:Government mandated monopolies and collusion by houghi · · Score: 1

      You will see a lot of changes, but not as an end-user. The companies will just devide the cake a bit differently.

      --
      Don't fight for your country, if your country does not fight for you.
  8. You don't say by Tablizer · · Score: 1

    Since when have telecoms been expected to compete fairly? Lopsided local deals are common in the industry, often in the name of "getting a better deal for consumers", but not ending up that way in the longer run.

    This doesn't condone the Google deal, but rather should be shining a light on a much wider problem.

    1. Re:You don't say by Tablizer · · Score: 1

      Without regulation they'd make large proprietary systems with no swappable parts so that only their stuff works with their stuff. Any competitor would have to reinvent the entire wheel for miles. Not efficient, not logical, not competitive.

  9. Pot meet kettle by sjbe · · Score: 4, Informative

    Louisville's largest cable and internet provider says the city is giving Google Fiber an unfair advantage

    Cable companies whining about unfair advantages. Cry me a river. This from the same folks that built their business by convincing municipalities to sign exclusive agreements for cable service within an area.

    1. Re: Pot meet kettle by KenHansen · · Score: 1, Insightful

      For which the cable cos made concessions, now the city wants to scrap the monopoly and keep concessions.

    2. Re: Pot meet kettle by oh_my_080980980 · · Score: 2

      Trolling for the cable companies. Take it elsewhere Potsy.

    3. Re: Pot meet kettle by Ogive17 · · Score: 1

      Do you always call others a troll if they offer a perspective different from yours?

      I haven't read enough about this to go one way or the other but it is quite possible Charter has a legitimate beef. Just because we think the terms are ridiculous to begin with doesn't mean it's right for the municipality to pick and choose which parts of the mutual agreement to adhere to.

      --
      "Action without philosophy is a lethal weapon; philosophy without action is worthless."
    4. Re: Pot meet kettle by buchanmilne · · Score: 1

      So, they can remove the "free internet for municipal offices, schools etc." from the concessions because that doesn't relate to their monopoly?

    5. Re: Pot meet kettle by MachineShedFred · · Score: 1

      They got 40+ years out of the deal. Time to renegotiate.

      --
      Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
    6. Re: Pot meet kettle by jezwel · · Score: 1

      Sounds like the city is acting in the best interests of its citizens - introduce competition to drive down pricing, yet retain concessions from the original monopoly. It looks like the city is going to review their agreements, so nothing more to see here until a decision is made - then we have something to talk about.

  10. Re:we need of list of cities by "unfair edges" giv by Holi · · Score: 1

    Well that and running coax through out the city.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  11. Re:Make a deal then by jedidiah · · Score: 3, Funny

    Those "public interest" requirements seem outdated anyways. They sound like a relic of the 80s.

    Wayne and Garth have Youtube now.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  12. They should sue in civil court... by SkyLeach · · Score: 1

    They did, after all, buy their monopoly fair and square and should have a contract with the city for it.

    Should be interesting.

    In communism, the state owns the corporations.
    In capitalism, it's the other way around.
    Party politics stay the same.

    --
    My $0.02 will always be worth more than your â0.02, so :-p
    1. Re:They should sue in civil court... by david_thornley · · Score: 1

      Unless Google is providing cable TV service, the cable company still has the monopoly it asked for. If that particular monopoly has become less lucrative over time, that's not the fault of either Google or the city.

      --
      "When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
  13. Charter could be wrong by jellomizer · · Score: 4, Insightful

    Cable TV is considered a luxury item. Hence the rules for charter are based on Cable TV Service. Internet on the other hand isn't a luxury service it is needed to operate in modern daily life. Now the Cable TV Industry used their infrastructure to expand to Internet. However it is still bundled, and priced accordingly. Google Fiber is meant to be much cheaper and get more. These government restrictions can be relaxed because 1. it is for a greater good, 2. they are trying to offer services at a lower price point.

    I would agree to charters terms IF they can provide the citizens similar services for similar costs without such extra controls.

    The Cable TV Monopoly has been a bastardization on the US Market for too long. Hense why Cable TV companies are some of the worst to deal with.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    1. Re:Charter could be wrong by TemporalBeing · · Score: 1

      Broadband Internet is a luxury — dial-up speeds are perfectly sufficient for job-search and e-mailing one's resume. But this is distinction without difference — why should one company running low-voltage cables to each house be treated differently from another company running low-voltage cables to each house?

      While I agree, I would hate to try to use gmail, hotmail, Yahoo! Mail, etc over a 56k modem. You'd never get the pages loaded, or files uploaded - even in their "basic" modes.

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
    2. Re:Charter could be wrong by mi · · Score: 1

      You'd never get the pages loaded, or files uploaded - even in their "basic" modes.

      So you'd use their IMAP-service instead — and stop wasting bandwidth.

      --
      In Soviet Washington the swamp drains you.
  14. Concessions? by sjbe · · Score: 2, Insightful

    For which the cable cos made concessions, now the city wants to scrap the monopoly and keep concessions.

    "Cable company made concessions"? Ha! Pray tell what did the cable company give up to get their monopoly? Who do you think benefited the most?

    Truthfully I couldn't care less if it is unfair to the cable company or not. The sooner we get real competition the better and if a huge cable provide gets screwed in the process, that's just the cherry on top. If you check their record on customer service you aren't going to come away impressed. I only care about the end customers and ensuring they get the best deal.

  15. "no right to unequal treatment" by AutodidactLabrat · · Score: 1

    Yes, they have such a right.
    Your charter requires you to serve "In the public interest"
    Your monopoly activities do not so serve
    The other party to the contract has every right to obtain leverage to make you adhere to your charter.

  16. Perhaps by Archfeld · · Score: 1

    It might be said that Google has yet to prove they are douche bags who will screw over their customers, the city and anyone else whom they can for a .05. I am not saying Google won't end up that way but so far their fiber rollout has resulted in a much more competitive environment benefiting everyone involved except the incumbent cable/content providers that have been routinely screwing everyone involved.

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
  17. Cable Franchises are Non-Exclusive!. by Junior+Samples · · Score: 1

    Under FCC Rules and Regulations, Cable companies are required to be franchised by the communities that they serve. The franchise is non-exclusive. Multiple franchises are allowed to be issued to multiple cable providers.

    There are no regulations requiring data service providers to be franchised, although some arrangement would be needed to access "rights of way" and use of existing utility poles. You'll notice that you are only billed a franchise fee for video services and not for data services by the cable company. The cable companies are free to do almost anything they want regarding data services because they are not regulated as far as the local community is concerned. Exceptions would include "fair use" provisions established by congress and the FCC.

  18. This scenerio sounds familiar for some reason by RCourtney · · Score: 1

    Charging long-time customers more than they charge new customers has been a thing for cable companies for awhile now - so I guess they should understand too when it happens to them?

  19. Guaranteed return by sjbe · · Score: 2

    ...and then poured millions of dollars into their infrastructure. Without the exclusive agreements, the investments wouldn't have been made - it's as simple as that.

    First off with a monopoly that is effectively a risk free investment. I would have ZERO problem pouring millions of dollars into a project that was guaranteed a return if I had any competence at all.

    Second, if you think the infrastructure investments wouldn't have been made by someone you are an idiot. There was too much money at stake for it not to get made. They negotiated a series of deals with tiny municipalities that asked for little in return. Basically they took advantage of (and/or bribed) local officials into giving them a long term monopoly on a cash cow almost guaranteed to generate a substantial profit.