Way to Go on AT&T Broadband Monopoly! FCC Commissioners Copps and Adelstein

I’m sure the sell-outs who make up most of the Washington telecom lobbying corps believe that FCC Commissioners Michael Copps and Jonathan Adelstein must come from another planet. But these all too rare two officials represent so much about what is right with the U.S. They are doing more than standing up for the public interest and demanding merger safeguards. Each has made a powerful and honest critique about what is at stake. They recognize that the U.S. broadband digital media system has been handed over to an ever-shrinking few. They realize that the U.S. media system, especially news, is in a deep crisis. Copps and Adelstein correctly critiqued what the Bush Department of Justice just did yesterday when it blessed the merger without safeguards. How refreshing to have officials who work for the public–and not really on behalf of a handful of self-serving media giants who place corporate and personal profit before the real needs of a democratic U.S.

Copps and Adelstein: Onwards to the Noble Peace Prize (Media Policy division!). Nobel citation: Trying (probably in vain) to restore honesty, integrity, and real public service to the FCC.

NetCompetition.Org: They Have Drunk Too Much Cable/Telco Lobby Kool-Aid

We hate to focus too much on this Telco-Cable industry funded lobbying effort. But its latest [9/29] self-heralded “one-pager” attacking network neutrality proponents requires a response (we admit we may have come down with a Sen. Stevens form of `fetish’ about this lobbying site). Netcompetition’s analysis comes from a naive view of the realities of the broadband market. The paper paints a glowing picture of what it believes is emerging broadband competition. Hence, with such prospective abundance of networks and content likely, it argues that the country ignore the calls for safeguards coming from net neutrality supporters. We are, suggests Scott Cleland, experiencing “unfounded pessimism and fear about the future of broadband…”

First, we have to say that history is on our side. Despite all the talk and proclamations about bypass and competition—we haven’t had much in the multichannel and telecom sector. It’s been a sad story of consolidation and broken promises. Two, Mr. Cleland is ignoring the powerful triple/quad play now being deployed by his funders. Their networks—and content applications and partnerships—will dominate our TV, PC, and mobile experience for many years. The current state of broadband concentration–along with the emerging marketplace conditions–should be unthinkable in a democracy. Two companies control the cable industry; two will dominate the telephone market. Already, old media incumbents are swallowing new players—such as the News Corp. takeover of MySpace. There is tremendous consolidation throughout the digital content marketplace.

Hey Netcompetition. Your argument that just over the hill our digital media system is awash in a Wizard of Oz golden glow doesn’t cut it. We need safeguards now.

It’s not pessimism, but honest realism with an eye on the needs of our democracy. That’s a currency in too short supply in the nation’s capital.

Shame on the GOP and Dems in California: Gutting Community Oversight of Broadband

If we ever needed evidence about how both major political parties are in the pocket of the telecommunications industry’s very deep pockets, all we need to do is look at California. The new cable law kills the historic and critical role local governments have played in ensuring cable systems are held accountable and required to do public service. Now all franchising (the licensing of cable systems) will be governed by a single statewide agreement. Doling out these “one-size fits all, lowest common denominator” deals will be the feckless Public Utility Commission.

Democratic honcho Fabian Nunez, the Speaker of the Assembly, concocted the new law. Yesterday, GOP Gov. Arnold Schwarzenegger signed it. According to the Los Angeles Times, “AT&T spent $18 million through June lobbying and running television and full-page newspaper ads urging consumers to support the Nuñez bill — and then to thank Nuñez after it passed the Legislature.” [registration required]

The argument that Nunez and his Verizon and AT&T pals made to pass the bill was that only by gutting local oversight could California see cable competition. Boy, these folks should be ashamed. They have removed the key mechanism designed to ensure broadband networks serve local needs. There won’t be any serious competition—in either price or content. Just a few extra giants who are now free to run roughshod over both the cable TV and broadband business.

But money and power talks—and Nunez, Schwarzenegger and company played ball. Both parties in California have helped turn over a sizeable part of the country’s broadband resources to the very same interests which eliminated network neutrality.

PS: We note in the Los Angeles Times story the generally approving comments for the bill from USC’s Jeff Cole, the executive director of its Center for the Digital Future. Cole should have said [and the reporter should have identified if he did] that his center’s “Board of Governors” includes executives from AT&T (and other interests that supported the bill). As I said, money talks—with policymakers and too many “educational” institutions.

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Heart [less] Institute: Part of the Telecom/Cable Lobby Support System

The Heartland Institute is one of the never-ending series of groups that attempt to place the interests of big phone and cable monopolies before those of the average American. Ideology shapes the findings of this group. If it had a MySpace page, its “friends” would include the Progress and Freedom Foundation, American Enterprise Institute, the Heritage Foundation, Cato, and the Pacific Research Foundation. They are a well-connected and networked web of organizations used to advance the narrow, monopoly-building agendas of Comcast, AT&T, Verizon, and a few others.

Now with a yearly budget in the millions, the Heartland Institute is keeping up a steady attack on the public interest campaign to restore online freedom [net neutrality] and broadband competition for the U.S. Internet. Take its most recent IT&T newsletter [no. Not named after the infamous super-conglomerate and scandalous company. It stands for Info Tech & Telecom News. But we think Heartland’s Freud must have slipped a lot when it chose that acronym]. In the September 2006 issue of IT&T, managing editor Steven Titch defends the upcoming mega-merger between AT&T (formerly SBC) and BellSouth. “This merger should be allowed to proceed,” he writes, because AT&T will provide “new investment and a growth strategy.” He attempts to make the case that poor BellSouth needs a government-approved mega-buyout to save its declining revenues. But Heartland’s analysis is distorted, designed to help out AT&T. So ignored, for example, is what Bell South told the SEC—and investors– in its 2005 10K report (before the pending merger helped shaped what it now claims). “We are a Fortune 100 company with annual revenues of over $20 billion. Our core business is wireline communications and our largest customer segment is the retail consumer. We have interests in wireless communications through our ownership of approximately 40% of Cingular Wireless (Cingular), the nation’s largest wireless company based on number of customers. We also operate one of the largest directory advertising businesses in the United States. We have assets of approximately $60 billion and employ almost 63,000 individuals…During 2004, we realigned our assets towards domestic wireless and increased investment in broadband to better position the company for the future. Specifically, our wireless joint venture, Cingular Wireless, purchased AT&T Wireless in October 2004, causing Cingular to become the largest wireless company in the United States and increasing the percentage of our revenue from wireless operations on a pro forma basis to approximately 40%. To further this realignment in strategy, we sold our Latin American operations to Telefónica Móviles in transactions that closed in late 2004 and early 2005…. As use of the Internet grows and as corporate data applications increase in sophistication and scope, the market for broadband and data services is expanding and evolving. BellSouth will continue to expand its capabilities in order to maintain a leadership position in the broadband and data communications market. Investment in service infrastructure is strategically managed to enable delivery of services offering increasing capacity and functionality. In parallel, we continue to use new advances in digital technology to bolster the broadband capabilities of our entire network. The emergence of high-performance broadband and digital infrastructure offers the ability to use these networks for real-time communications including voice and video using various technologies such as softswitches (software-based switching platforms) and voice over Internet protocol (VoIP).”

Doesn’t sound like a corporate version of the Titanic to me.

What Heartland and its big telecom-supported “think tank” minions want is a system where the public has no rights. An AT&T—in Heartland’s view—should be able to do what it wishes, regardless of the costs to our democratic society. Journalists and consumers beware. Heartland has constructed an artificial view of the world based on fantasy spun from corporate lobbyist’ playbooks.

Hey, Big Spender: Telco’s and Cable Buy Favor on the Hill

The National Journal’s excellent David Hatch has kept his journalistic eye on all the telecom/cable lobbying money flowing in to Congress. Millions are being spent to keep lawmakers favorably disposed against net neutrality and other broadband safeguards. The majority of AT&T’s giving (67%) has gone to the GOP. Other big spenders include Comcast, BellSouth, Verizon and Time Warner (the latter should spend less on lobbying and more on privacy. But, of course, they really don’t want to).

Read David’s article. See how Speaker Hastert, House Commerce chair Joe Barton and many others have done well for themselves. And then follow the money when the voting on network neutrality comes this fall.

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Telco CEOs to the Internet: We Own You and You Will Never Be Free

Top execs from Verizon, Qwest, and the USTA lobbying machine attacked the concept of network neutrality yesterday. They spoke at the annual lobbyist love-fest run by the Progress and Freedom Foundation. The exec remarks make clear that the leadership of the U.S. telephone industry is hazardous to the Internet’s health. For example, Verizon’s Tom Tauke dismissed concerns about what will happen to our democratic rights now that neutrality is lost. For the former Congressman turned top lobbyist, there are only consumer interests. “…I believe,” he said, “there is now an emerging consensus” that’s it’s all about consumers, reported Communications Daily [Aug. 23, 2006. Subscription only]. He said that calls for “non-discrimination” were coming from advocates of “old rules” (he meant the policies that made the Internet an open forum]. Meanwhile, the chief of the United States Telecom Association–Walter McCormick–said that his members “would oppose any bill with strong net neutrality language.” Qwest CEO Richard Notebaert chimed in that there was “no need for Congress to act where there’s no problem…”

Bolstering the industry’s jeremiad was the chief staffer for House Commerce chair Joe Barton. Howard Waltzman predicted, “there would not be a bill sent to the president that included [non-discriminatory net neutrality requirements] because the House would not agree to it.” Waltzman, the majority chief counsel, also proclaimed that “the Snowe-Dorgan amendment” requiring net neutrality would fail in the Senate.

These are the people—along with their bosses—who are placing the business plans of a few special interests before everyone else now online. Web 2.0 will be shaped to fit their image of broadband unless they are stopped.

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Why the Phone and Cable Industries Fear the Net

Verizon, AT&T, Comcast, Time Warner and others oppose network neutrality because they fear competition: from the Internet. In this piece I wrote for The Nation magazine, online, I discuss what their plans are for our broadband futures. Read it and fight (on) for a more democratic, diverse, and even perhaps competitive digital media system.

Kill Bill: Steven’s Commerce Committee Posts “Tube” (I mean Telecom) Bill

Here’s an example of the narrow-minded, telecom lobbyist written, communications policies that undermine the development of a U.S. democratic media system in the digital era. Congress–as usual–doesn’t really want to acknowledge why the cable and telephone industry are so afraid of the Internet as we now know it (real competition for ideas and commercial advantage). Leaders such as Sen. Stevens have their heads in the digital sands. By letting a few narrow (but powerful) interests–such as AT&T, Verizon, Comcast, and Time Warner–dominate the distribution of digital media, Stevens/Joe Barton and company are undermining both democratic discourse and competition.
This is the marked-up bill passed by Senate Commerce. It should be called the “Telephone & Cable Monopoly Giveaway and Anti Consumer/Community Act of 2006.” We will be back soon with a full analysis. But it’s revealing that the U.S. public is treated as “subscribers” or “consumers”–not as citizens and others deserving a broad and expanded set of rights.
http:// www. commerce.senate.gov/public/_files/HR5252RS.pdf

PS: The Stevens Committee also released–and then pulled, we were told–a “brochure” promoting its bill. Sen. Stevens apparently feels desperate that his bill–and lack of understanding about how the Internet works–was getting so much bad press. I guess he–and his aides–don’t know much about PR either. Here’s the brochure.

Why Take AT&T’s $1 Mil. when it Wants to Destroy a Democratic ‘Net in the U.S.?

(we won’t comment yet. Just see news story below)

From: http://sanantonio.bizjournals.com/sanantonio/stories/2006/07/31/daily5.html

AT&T Foundation gives $1 million for technology access
San Antonio Business Journal – 3:04 PM CDT Monday

The AT&T Foundation has announced a $1 million grant to provide new technology resources for people with all types of disabilities.

The grant to the Community Technology Centers’ Network (CTCNet) is part of a three-year AccessAll initiative by AT&T to provide technology access to underserved communities. It will be used to fund training for community technology center staff on universal design and assistive technology that can be used to accommodate multiple learning styles and abilities.

CTCNet will make the AT&T funds available to regional centers through a competitive application process.

(The grant) will enable CTCNet to work with our member centers to demonstrate standards in universal design for space, learning, hardware and software,” says Kavita Singh, executive director of CTCNet.

The AT&T Foundation is the philanthropic arm of San Antonio-based AT&T Inc. (NYSE: T), one of the largest telecommunications holding companies in the world.

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AT&T’s Blue Room: Music Fans Should Beware of this Anti-Internet Freedom Sponsored Site

Guess who’s the “online broadcaster of several of the hottest summer concerts”—including this weekend’s Lollapalozza. It’s AT&T. The anti-network neutrality phone giant is now “aligned with artists such as Coldplay and Keith Urban,” notes Ad Age. This summer, AT&T’s Blue Room is bringing online music fans “LIVE webcasts from Coachella, Bonnaroo, Austin City Limits, Lollapalooza.” The Blue Room site helps debut music from CBS and has interviews with many leading music artists (including Yung Joc, Rodney Atkins, LeToya, and Tom Petty). Naturally, Blue Room runs online ads for AT&T’s high-speed Internet service. AT&T is also making a major push to reach others online, including bloggers (Project D.U.).

We think it would be very cool for Blue Room’s users—and participating music artists—to make it clear that they want AT&T to support Internet Freedom (network neutrality). They should demand that the phone giant stop its political campaign to control the future of broadband in the U.S. Otherwise, they should give AT&T’s digital monopoly–including Blue Room–a real case of the blues.

Source: “A Cool, Hip AT&T? Step Inside Blue Room.” Abbey Klaassen, Ad Age. July 10, 2006