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Tennessee Could Give Taxpayers America's Fastest Internet For Free, But It Gave Comcast and AT&T $45 Million Instead (vice.com)

Chattanooga, Tennessee is home to some of the fastest internet speeds in the United States, offering city dwellers Gbps and 10 Gpbs connections. Instead of voting to expand those connections to the rural areas surrounding the city, which have dial up, satellite, or no internet whatsoever, Tennessee's legislature voted to give Comcast and AT&T a $45 million taxpayer handout. Motherboard reports: The situation is slightly convoluted and thoroughly infuriating. EPB -- a power and communications company owned by the Chattanooga government -- offers 100 Mbps, 1 Gbps, and 10 Gpbs internet connections. A Tennessee law that was lobbied for by the telecom industry makes it illegal for EPB to expand out into surrounding areas, which are unserved or underserved by current broadband providers. For the last several years, EPB has been fighting to repeal that state law, and even petitioned the Federal Communications Commission to try to get the law overturned. This year, the Tennessee state legislature was finally considering a bill that would have let EPB expand its coverage (without providing it any special tax breaks or grants; EPB is profitable and doesn't rely on taxpayer money). Rather than pass that bill, Tennessee has just passed the "Broadband Accessibility Act of 2017," which gives private telecom companies -- in this case, probably AT&T and Comcast -- $45 million of taxpayer money over the next three years to build internet infrastructure to rural areas.

19 of 341 comments (clear)

  1. America! by Anonymous Coward · · Score: 5, Insightful

    Making legislated monopolies great again!

    1. Re:America! by Thruen · · Score: 4, Informative

      In this situation, "their way" (the current way) is to have regulations that prevents competition from entering an area the cable companies aren't expanding into amyway, "my way" (the alternative that got shot down) is to get rid of the regulation and allow a profitable company to expand where nobody has yet at no additional cost to taxpayers...

      Cities providing internet does not create a "legislated monopoly," it creates a public service. However, having legislation that protects monopolies by not allowing competition does create a "legislated monopoly." Really basic stuff here, guys, shouldn't be this difficult for this crowd.

    2. Re:America! by beelsebob · · Score: 5, Insightful

      Not at all. You create a municipal internet, and you still allow everyone else to compete with it. You just use the government option as a method of making sure competition actually works in the public's interest.

    3. Re:America! by Nemyst · · Score: 4, Insightful

      Nice of you to immediately assume political partisanship when none was mentioned by the parent.

    4. Re:America! by Rhipf · · Score: 4, Insightful

      Fair competition is only possible so long as the commercial ISP doesn't receive any special treatment, such as favorable regulation, exclusive access to region, ability to get tax money when they feel threatened by a competitor... .

      FTFY :-)

  2. Re:Money well spent. by Shatrat · · Score: 4, Informative

    A politician's constituents are the people who donated the most to their campaign.

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  3. Re:This is what you voted for America. by Anonymous Coward · · Score: 5, Insightful

    Let's not pretend like this is a party-specific issue. While they pay more lip service to helping the little guy, Democrats are every bit as much in the pockets of big business as Republicans are.

  4. One party government by Zontar_Thing_From_Ve · · Score: 5, Insightful

    This is what happens when you let one party have a complete stranglehold on state government. The number of Republicans in the state senate are almost 6 to 1 in favor of Republicans. It's almost 3-1 in favor of Republicans in the state house. The governor in Republican and there's no accountability. Voters have shown consistently that the vast majority of them only care about whether a D or R is next to a candidate's name and everything else is negotiable. I'm sure we'll get a few "Throw the bums out" posts, but that's not going to happen. Most of the state governments in the southeastern USA have sizable Republican majorities. I've seen corrupt practices out of the Democrats too when they had strangleholds on states with huge majorities in the state legislature. It's what happens when one party gets entrenched and there's no hope of getting them out.

    1. Re:One party government by moeinvt · · Score: 4, Insightful

      "Democrats will take ma guns..."

      Go ahead & mock people while you keep losing elections by alienating millions of voters who lean Democrat but will vote Republican based on this one issue. Your last presidential candidate even went so far as to say that Australia-style gun confiscation is "worth considering".

      If you're a Democrat, you'd be smart to tell your party to drop gun control from the platform. It's no coincidence that Democrats lost their decades-long majorities in both Congress and the Senate right after they passed the first major federal gun control law since 1968; A defeat from which they have never recovered.

      This issue is a boat anchor on your party. After 22 years, isn't it time to cut your losses & move on to more important things?

  5. It's not a free market by sjbe · · Score: 5, Informative

    However, I have serious, fundamental reservations about government competing with the free market.

    That might be a valid concern if provision of wireline data was actually a free market. It is not and never has been and there is no reasonable prospect of it becoming one in the near future either. Companies like AT&T and Comcast have a government granted monopoly because of the substantial capital costs involved in setting up and maintaining such a network. As such they need to be regulated to assure against abuses. Given that fact it is perfectly reasonable for the government to get into the market with alternative offerings if the private corporations are not providing sufficient value to the citizens.

    1. Re:It's not a free market by jittles · · Score: 5, Informative

      It is not and never has been and there is no reasonable prospect of it becoming one in the near future either.

      That's not exactly true. Just look for pictures of NYC at the turn of the century and you can see neighborhoods with hundreds of power and telephone lines from competing companies going through neighborhoods. It's an eyesore and incredibly dangerous. This is why it will never be that way again and why there should be no corporate interests invested in owning utility lines.

  6. Re:This is what you voted for America. by Maritz · · Score: 4, Insightful

    Golf clap for a master job the GOP did getting people to vote against their own best interests. Bravo, my friends.

    Credit would be due if it were somehow 'hard' to fool people. As Mark Twain (allegedly) said, "It's easier to fool a man than to convince him he's been fooled."

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    I do not want your cheap brainburning drugs. They are useless for work. And I am a working man today.
  7. Re:Money well spent. by Opportunist · · Score: 4, Insightful

    Anarchy essentially means that whoever has the most power will rule, make the laws and enforce them to his own benefit.

    Hmm. I fail to see the difference to the current situation.

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    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  8. Re:This is what you voted for America. by Opportunist · · Score: 5, Insightful

    I'm no fan of the GOP, but face it: It would not have been any different if the Democrats ruled. What would change is who gets to steal from you.

    And frankly, if you're a rabbit, do you care whether fox or wolf eats you? It sure matters to fox and wolf, but to you, the outcome isn't that different.

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    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  9. Re:This is what you voted for America. by jeff4747 · · Score: 4, Insightful

    Your statement presumes the Democratic party would yield a different result. That isn't the case. The Democratic party shifted to neoliberalism in the late 80s/early 90s.

    The parties differ on social issues. They are identical when it comes to corporate issues.

  10. Re: Money well spent. by knightghost · · Score: 4, Insightful

    Spot on. The only real party in the USA is the Corporate Party. It's biggest enemy is Social Media and it does everything it can to twist it.

  11. Re:Monopolies suck. $4,400/house aint free by drinkypoo · · Score: 4, Informative

    It's not free. It's government providing needed infrastructure. High speed Internet access is a requirement for being a first-class citizen in the modern age.

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    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  12. Here is a radical idea.. by fallen1 · · Score: 4, Interesting

    ..that has actually been brought up before on Slashdot, but it bears bringing up again.

    Why not let each county/city build out a fiber optic network that will serve its citizens, connect to each county that touches them in a peering agreement, then connect to the overall backbone that is the Internet? Once those fiber networks are built out, the county/city can then let any ISP that wants to connect to the fiber and sell services -- with the county/city collecting $XX.xx per connection for upgrades and maintenance. THAT would create competition. Even if the local county/city creates their own ISP, then that service provider/entity must be separate from the entity owning the fiber optics and still has to pay $XX.xx per connection for access to the physical fiber. Fair play and all that.

    The county/city entity that owns the fiber should have a completely "hands off" policy (net neutrality) when it comes to data flowing over the fiber and their only concern is the physical upkeep and maintenance.

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    Dream as if you'll live forever.
    Live as if you'll die tomorrow.
    ~Anonymous~

  13. Re:Monopolies suck. $4,400/house aint free by ranton · · Score: 5, Informative

    Chattanooga EFB took over $300 million from taxpayers. There are 75,000 households in Chatanooga, so the cost is $4,400 per family even if you don't get the service, with an additional monthly charge if you want the service. When you have to pay $4,400 plus $60-$150 per month, that's not free. That's not anywhere near free.

    This is quite inaccurate. EPB only took $111 million from taxpayers. $300 million was the total cost including the amount paid for by Internet, cable, and electricity customers of EPB. That comes to $1628 per household, not $4400. Fiber optic cables are tax depreciated over 15 years, with a presumed service life of 25 years, so that is $15 per month per household in taxes.

    And considering these taxes then mean you don't have to deal with companies like Comcast, it seems like quite the bargain.

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    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke