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Friday, May 14, 2010

The Backwoods Corporatists want to throw up road blocks to stop access to 21st Century High Speed Broadband

Notes from the Raleigh News and Observer show how the Conglomeration of Cable, Telephone, and other data communications providers are doing everything they can to keep progress from taking place and to protect their niche interests and soon to be antiquated capital cash-cow investments.

NC cities, cable still at odds on broadband entry - News and Observer - Gary D. Robertsen - 5/9/2010 - a summary of the article points out several issues.

Big telecoms in North Carolina keep fretting about towns like Wilson and Salisbury getting into the broadband business. Ever since a 2005 appeals court ruling upheld the right of towns and cities to offer high-speed Internet to their residents, large cable and phone companies have been urging the General Assembly to throw obstacles in the way. Local governments, they argue, don't have to pay taxes and can subsidize their rates to undercut the corporate competition.

Those efforts, however, have failed as mayors and local governments argue the big companies won't offer the kind of super-fast Internet at reasonable prices they say attracts high-tech industries. "We're trying very hard by providing broadband to bring new local businesses to our community, to bring jobs," said Salisbury Mayor Susan Kluttz, whose city has borrowed to build a $30 million fiber-optic network it will begin testing in a few months....

A 2005 Court of Appeals ruling involving then-BellSouth Corp. and the city of Laurinburg, which leased its fiber-optic network to outside customers, determined high-speed Internet fell under the definition of cable television. Only a few municipalities have entered into the broadband network business since then. Wilson has made the most dynamic effort. Wilson city officials borrowed $28 million, without a referendum by voters, to lay the fiber-optic lines and build other infrastructure to create Greenlight, which offers cable, phone and Internet service...

Greenlight has drawn nearly 5,000 household customers since it began offering the service in 2008. According to its website, it has the fastest residential Internet speed in North Carolina: 100 megabits per second, compared to 15 megabits offered to Time Warner residential customers in Wilson....

Sen. David Hoyle, D-Gaston, recently proposed a moratorium on local governments getting into the business while the issue is studied further. Hoyle backed down after opposition from the North Carolina League of Municipalities and several companies including Google, Intel and Alcatel-Lucent. But he replaced the proposal with a requirement that any debt incurred for building a broadband network must be approved in a referendum. "What's wrong with the people being allowed the right to vote on debt that they're going to be responsible for repaying?" Hoyle asked. Kelli Kukura, a lobbyist for the league, said cable television groups have spent hundreds of thousands defeating referenda on similar broadband projects in other states, with ad blitzes on their own cable TV systems...

More efforts at a compromise are likely on the horizon. High-speed Internet service could mean the difference between economic prosperity and malaise for small towns in North Carolina. "In the 21st century, broadband is what electrification and water and sewer were in other centuries," said Rep. Jennifer Weiss, D-Wake.
It is amazing how much time, money, and efforts have been utilized to stop progress, especially on this issue, here in the Great State of North Carolina. Do representatives in this State represent the Corporate interests or the well being and quality of life of their constituents?

If asked, here in our area, about a referendum on Telecommunications in our area, how would our citizens respond? I am sure that they would be weary of the price tag, but those of us who believe in modern cutting edge technology can fight that fight with one word -- CHARTER!!!

The simpler people in this area may not see the connection between high-speed broadband and economic development, but they certainly despise the boogie man that Charter Communications has turned itself into in our area and the people in Hickory aren't too enamored with CenturyLink (aka Embarq, Sprint, Century Telephone, or whatever they are called next week)..

Wilson's local Broadband infrastructure service - Greenlight - offers a package of 10Mbps internet (up AND down), HDTV w/DVR, and Phone service for $119 per month. a higher tier package consisting of 20Mbps (up/down), television with all premium channels, and phone is $170/month. These aren't teaser rates. These are everyday packages! Do Charter, Embarq, or anyone else offer this kind of service at anything competitive with this kind of price?

I understand that the local populace might worry about the initial cost of the outlay of this infrastructure and the management of the system. There will be a tax cost associated with such a project, but it is a true investment that holds merits of value.

As State Representative Jennifer Weiss of Wake County stated. "In the 21st century, broadband is what electrification and water and sewer were in other centuries."

Folks, this is how we communicate with one another. Are we going to let corporations hamper our ability to communicate with one another? This is the interstate highway of communications. We want to drive at faster speeds and these companies want us on dirt roads. I think that I have expressed in this blog the importance of the Broadband issue to our area. Any tax increases, in the name of this effort, should be 100% earmarked to this effort only and the entity should be established and operated completely in the open.

I think, along with many of my compatriots in this effort, that people would be willing to approve some increase in taxes in the name of this effort, if they feel that this effort would be fruitful towards the creation of new jobs, more competitive pricing, increased educational opportunities for the populace, increased opportunities and support for our existing industries, and a greater quality of life in general.

We all hope that the Google effort comes our way, but there is certainly nothing wrong with having contingency, thoughts, ideas, and plans available if we are not chosen by Google.

1 comment:

harryhipps said...

Isn't this a familiar pattern? Cities, individuals, or other interests want to progress, then the big money interests run to the State to create barriers to entry. Do the consumers get better products and services in the end? No. The big interests get to keep selling mediocre stuff and the politicians get their pockets lined with contributions. Competition gets stifled and the public loses. And to think there are many, many people who still want government to step in and regulate things.