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FCC Kills Build-out Requirements for Telecoms
Posted by
samzenpus
on Thu Dec 21, 2006 04:14 AM
from the new-rules dept.
from the new-rules dept.
Frankencelery writes "In a 3-2 vote, the FCC has altered cable franchising laws in the U.S. to the advantage of AT&T and Verizon. 'The FCC order imposes a 90-day limit on local communities' franchising decisions, but, more importantly, does away with build-out requirements. Those requirements generally insist that companies offer service to all the residents in the town, rather than cherry-picking the profitable areas.' Good news for the telecoms, but bad for cities who want a say in the fiber deployments."
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The Battle Over AT&T's Fiber Rollout 121 comments
Tyler Too writes "AT&T is facing heated opposition from some communities where it wants to deploy its U-Verse fiber network. Ars Technica has a feature looking at the situation in the suburbs of Chicago. 'Legal uncertainty is the rule when it comes to IPTV deployments by telecommunications companies. Neither Congress nor the FCC [has] weighed in on whether services like U-verse require their operators to take out a cable franchise from cities, and no federal judge has issued a definitive ruling.' It's not just Chicago, either: 'With AT&T set to upgrade its infrastructure to support U-verse across its wide service area, this is a battle that could play out in thousands of communities across the country over the next few years.'"
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This is not for AT&T (Score:4, Insightful)
There are cases where even "evil monopolists" should be left to do certain aspects of their business without regulators messing in it.
Re:This is not for AT&T (Score:3, Interesting)
Re:This is not for AT&T (Score:2)
Re:This is not for AT&T (Score:5, Insightful)
>
> Which is bad how, exactly?
At the expense of equal access, public infrastructure, and realistic phone rates to go along with those benefits.
Or, was there an upside to corruption that we weren't aware of? Enlighten us how buying off greedy politicians is so great.
Parent
Re:This is not for AT&T (Score:3, Insightful)
> > Which is bad how, exactly?
> At the expense of equal access, public infrastructure, and realistic phone rates to go along with those
> benefits.
You need to think into the future.
If in a given field, a company is making excessive profits, the fact that that field is so profitable naturally leads it to draw in other companies. These new companies then undercut - just a little - the existing companies, to steal their customers. This is the b
Re:This is not for AT&T (Score:3)
Very rarely do you hear a company say "hey, we're going to market our wireless internet service in the slums, where no-one can afford the rates we want to charge!"
OK, forget about the slums. (Score:5, Insightful)
Rural communities already went through this with cable tv -- cable companies wouldn't put down the cable because it was too far away, and then when some communities tried to go with satellite TV instead the cable companies got a COURT ORDER forbidding them to do so because the cable companies had exclusive agreements with the states.
Profit is made off of these services because the companies that sell them want the services to be *indespensible*. Trying to market a service as indespensible while refusing to provide it to certain segments of society does not make for a healthy society.
So in answer to the question:
When a company decides to claim a monopoly on a service (and when you purchase a franchise from a community or state government you generally wind up having a monopoly in that area) then they have a responsibility to make that service available to all citizens. A monopoly is a different beast from standard business practices, because there are no other choices to make.
Parent
Re:OK, forget about the slums. (Score:4, Interesting)
Anecdotally, I can tell you about my situation. I live in a rural area myself, where cable stops about a half a mile from my house. It sucks, but I don't feel that I'm *entitled* to cable internet. Sure, there is only one cable provider in the area, but when we got wireless a few months ago (the antenna is on top of the local grain silos, how's that for rural?) the cable company didn't complain. There is no bad blood on either part. It simply wouldn't be profitable to run cable half a mile for one customer, and we understand that. So, we go to a competitor, and they understand that. I don't see why the law should force them to run their cable out to us if it won't be profitable. It is not paid for by my taxes.
I know it sounds like I'm sacrificing my soul at the altar of profit or whatever, but think about this: if the state forced the cable company to build out to my house, or beyond, the start-up that provides wireless would probably not have come to our area (we were in close contact with the company, trying to get them to come out here). If the state forced build-out, it would have (1) lowered the profits of the cable company, (2) lowered the profits of the wireless company, and (3) probably prevented the wireless company from even coming here and providing internet to others who are quite a bit farther from the cable line than we are. As it is, we and our neighbors get our internet, the cable company doesn't have to worry about unprofitable build-out, and the wireless company is making some good money in a new area. Like I said, this is purely anecdotal, but the theory applies elsewhere: don't force companies to provide a service, let the demand from the consumers make it desirable to provide the service.
This is why I am so interested in reading more about cable companies claiming monopolies. Build-out laws would have hurt my area, but if they really are stopping competitors while still not providing the service themselves, then yes I agree with you, they should be subject to such laws.
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Re: (Score:3, Interesting)
I'm asking this honestly, because I want to know: do you have citations for that info about cable companies getting court orders preventing rural consumers from obtaining satellite?
I remember the cable companies suing to prevent municipal broadband projects a couple of years back. This was back when some cities didn't have broadband or even planned rollouts.
live in a rural area myself, where cable stops about a half a mile from my house. It sucks, but I don't feel that I'm *entitled* to cable internet.
You are assuming (Score:5, Insightful)
The fair thing to do would be for localities/states/feds to divest the various companies of their physical networks, much as was done with electricity deregulation, which at least levels the playing field for everyone. After all, they were paid for with taxpayer dollars, so it only seems fair that the taxpayer owns them. That'd be us, btw.
Parent
No, you need to think into the future. (Score:4, Interesting)
The problem is, the phone company is allowed to set their prices based on the cost of providing service to a particular customer. If providing service toa customer is expensive, the phone company doesn't have to do it. The cable company doesn't have that option - it has to provide service to everybody. So the phone company drives down the price in the profitable areas, and the cable company is screwed - if they lower prices to compete, they still have to provide service to the unprofitable customers, and are eventually forced out of business because they arn't making any money. IF they don't lower prices, the phone company will just lower prices JUST ENOUGH to undercut the cable company, not really saving the cable company any money, while the cable company will probably have to raise rates for everyone because, now that they've lost their profitable customers to the phone company undercutting them, need to cover the increased per-customer costs of being saddled with only the expensive customers.
So, everybody loses - the profitable customers end up paying higher rates to the phone company because the cable company can't compete, and the unprofitable customers end up paying higher rates because they're not being subsidized by the profitable ones.
Now, I'm not saying that unprofitable customers should have the same rates as profitable ones - if you choose to live out in the boonies, that's your choice. But if we're not going to force phone companies to build out to everyone, then we shouldn't be forcing cable companies to do so either.
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Re:This is not for AT&T (Score:3, Insightful)
I knew people will bend it like this, but there's the deal: you have a certain acceptable price range to offer to your customers, say ~100 ID/mo (imaginary dollars
If you need to sustain certain profitability with regulations that force you to do business where you don't want to, yo
Re:This is not for AT&T (Score:3, Insightful)
At least, that's how the US Government helped Bell Labs with Ma Bell and we all benefited greater than all the libertarian marketscapes in third world countries combined.
Pick a better
Re:This is not for AT&T (Score:5, Insightful)
My phone bill after the Ma Bell breakup didn't reflect this.
All my bills following the deployment of broadband intraweb thingy didn't reflect this.
In fact, all my (tech) bills are rising faster than inflation and I have only experience more dropped calls, lower data rates, and poorer (image) quality television.
They may make in investment in infrastructure, but that doesn't mean a realized benefit to the customers in every case.
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Re:This is not for AT&T (Score:4, Interesting)
My local phone service today includes all the long distance I can eat, voice mail, more call handling options than I'll ever use, and costs 60 bucks a month. My parents paid a base fee for service, had to buy "message blocks" for local calls, and paid anywhere from 45 cents to a buck and half for long distance minutes.
Ten years ago I got my first cell phone, and paid $1 a minute for the first 20 minutes of usage, then 69 cents after that. Today I pay 10 cents a minute for the first 700 minutes (on two lines even) and something for going over, which we never have. I can make calls anywhere I go, never pay for roaming, and the only time calls drop is when I'm driving.
I don't usually think of TV as "tech" in this context, but ten years ago our cable bill with HBO ran something like $75(?). Today Dish costs us $80, with HBO and a DVR.
Parent
Re: (Score:3)
computers went from 1MHz costing $5000+ to 33MHz costing $2000+ and now 3GHz at $1000.
Cable: 1,000 x faster and about the same price
Computers: 3,000x faster and 1/5 the price
NOTE: digital telecoms infrastructure speed depends on the speed of the hardware not the cabling, so the speed should scale with the speed of comuters.
You're an idiot. Bandwidth is not merely limited by how fast you can toggle a bloody transistor. And while we all can have an example of the fastest existing PC on our desk, we can't all have the fastest existing network connection because it's a shared resource.
You're mistaken. (Score:3, Interesting)
Re:This is not for AT&T (Score:3, Funny)
> communication.
People have n money available to them. They spend it optimally - at least, more optimally than anyone else can spend that money on their behalf, because they know most about themselves, more than anyone else.
When the State appropriates money and decides what to spend it on, that money is AT BEST spend as efficiently as it would have been otherwise (in the case where the State spends it e
Re:This is not for AT&T (Score:3, Interesting)
wow, so naive... (Score:2, Informative)
Last I checked, the raison d'etre of monopoly regulation was because market forces had failed.
Re: (Score:2)
I don't see the world in black and white, I said:
There are cases where even "evil monopolists" should be left to do certain aspects of their business without regulators messing in it.
Which part of "there are cases" and "certain aspects" is unclear to you? There also such thing as overregulation, heard of it?
Re: (Score:3, Insightful)
Would you rather nobody be allowed to burrow on public property to build out the infrastructure for the Internet? That's what we'd have if the city were not allowed to make such bargains. Unless, of course, you want the city paying for a
Re:This is not for AT&T (Score:5, Insightful)
Except the people who, thanks to this decision, can't get any service whatsoever.
Anything that's vital for the proper functioning of society, and has a tendency towards a natural monopoly - water, electricity, telecommunications, transportation - should be controlled by the society and not by "market forces".
Parent
Re:This is not for AT&T (Score:4, Interesting)
Parent
Re:This is not for AT&T (Score:3, Insightful)
Well said (Score:2, Insightful)
This way, the electric companies would not have to serve you and your parents most likely would have never survived to spawn you as they would have died of exposure.
Or, more likely, they would never have learned about the world beyond their tiny little farm, and would never have Beverly Hillbi
Re:Well said (Score:5, Insightful)
No, it's stupid.
I'm so old and grew up in so rural an area, I realized very young that I profited from rural electrification. My mother still displays an "antique" kerosene lamp. Didn't purchase it. Family possession.
Sure, people complained that rural electrification was unprofitable. We could probably find some blowhard who complained at the time that it destroyed the opportunity for rich people to experience a Deliverance Weekend amongst the simple people who still played banjo on the porch in the evening. But can't most of us agree that _some_ national infrastructure standards are good for everybody? The libertarian miserliness screaming that somebody else is getting a few of their projected pennies of savings makes a mockery of the idea that there is an "American People" and that we are a "society" that share anything at all.
Parent
Re:This is not for AT&T (Score:5, Insightful)
In exchange for having their monopoly and rights-of-way protected by the government, it's only fair that utility companies would be required to give something back to the community, especially since there's such a huge public benefit at stake. If a utility company is considering moving into a hence-unserviced market, they can take into account servicing that market's outlying areas when they make that decision.
Parent
Re:This is not for AT&T (Score:5, Insightful)
With your Christmas lights shop you aren't digging up miles of public property to create the means for selling your lights. If you ever do start to do that, it becomes the public's business to say under what conditions you can dig up their property. People in a town may not want to deal with road closings and jackhammer noises and other disruptions if their block isn't going to be able to make use of the infrastructure buildout that is causing that disruption.
"If you want my service, move to a place where I offer it, or use someone else's service. Simple as that."
If you want to disrupt my days to build out something for your service in my town, you better make it available to me, or go to another town. Simple as that.
Parent
Welcome to Rural America (Score:3, Insightful)
You can't beat the 'phone company. (Score:4, Funny)
Good to see corruption and graft still thriving in the USA.
who is getting paid off? (Score:4, Interesting)
Re: (Score:3, Funny)
There has been a revolution. It was even televised, so I'm not sure what your excuse for missing it is.
KFG
That's alot of power / control (Score:5, Interesting)
The very fact that the decision had to be made leads me to believe there are communities, cities, populaces with many thousands if not millions of people who want a say in how their town is serviced by a telecommunications company. Some kind of kickback, like a swimming pool, or some franchise fees.
To my naive way of thinking, it seems incredible that 5 (3-2) people can veto the decision making process / power of entire cities or possibly even states, throughout the entire country.
It also seems kind of wrong. Power, corruption, ultimate power, you know, that kind of wrong.
Re:That's alot of power / control (Score:5, Funny)
No, I say. No. What we need is a small manageable amount of bribable individuals so companies can spend less resources on bribery, and more on running their business more efficiently.... into the ground. The current number is great. Sometimes you don't even have to pay them. You can just bombard them with marketers, PR guys, dime a dozen scientists and regatta parties and they mostly just end up actually believing what you say. Great stuff.
Parent
Re:That's alot of power / control (Score:4, Insightful)
Parent
Why is the FCC making policy? (Score:4, Insightful)
This is just yet another example; it is rediculous. Where is the mass outrage? Shouldn't Republicans be outraged by our government wiping its ass with the Constitution - limited government and separation of powers? Shouldn't Democrats be outraged as the government continues to redistribute our hard earned money into the pockets of its corporate sponsors?
I mean ordinary people. I'd like to think I'm an ordinary person, but polls say otherwise. Why aren't ordinary people outraged when they see these abuses and corruptions?
Re:Why is the FCC making policy? (Score:5, Informative)
Parent
Ammo for communities building their own fiber ? (Score:3, Interesting)
http://yro.slashdot.org/article.pl?sid=05/01/05/0
Will this decision then reduce the resistance against municipalities building their own infrastructure? If my township isn't one of the cherries to be picked by the companies, we can pick it ourselves.
Good for small telco's too (Score:5, Interesting)
Here's another perspective - the telco's are only offering DSL in specific areas - sure it's probably primarily for technical reasons - certain radius from the CO for DSL to work, but if they can "cherry pick" for DSL, why not the rest of the services they offer.
On the other hand, arguments about large numbers of rural residents not having phone or electric sevice now if the build-out requirements were never in place are hard to ignore, and high-speed internet is being considered a basic necessity by more and more people as time goes on. Perhaps the FCC doesn't agree about that, or perhaps they figure having wide-spread fiber deployments at all would be a better starting point to eventually get fiber to rural areas than if fiber wasn't in the city/town at all.
required buildout is good (Score:4, Insightful)
Required buildout NOT so good (Score:5, Insightful)
Living in rural areas with our current lifestyle incurrs a lot of societal costs in terms of pollution and infrastucture expenses. Rural development uses more land. Rural areas create more transportation costs, most indirect causes of which are born disproportunately by urbanitees. I could go on. In short, EVERYONE pays for those expenses, NOT just the folks living out in rural areas. It is not only unfair to ask urban dwellers to finance these inequities, it also creates an artificial incentive to develop rural areas and encroach on natural preserves.
It's bad policy. For phone and electric, I'm willing to hold keep my peace and underwrite expensive outlays to rural areas-- these are necessities, and I'm willing to take a hit so that other people can have those necessities. But to incurr those costs for entertainment seems a bit much-- particularly since for broadband and TV, viable alternatives do, in fact, exist. Sure, there aren't as many choices, but that applies to everything out in the country, from everything from stores to restuarants to places of worship.
Why should broadband/TV access be any different?
Parent
Join a Mesh Network Project! (Score:3, Informative)
http://cuwireless.net/ [cuwireless.net]
No; Good for cities that want a say... (Score:3, Insightful)
FUSF? (Score:4, Interesting)
Does that mean I can keep my FUSF fees?
Of course not. Gah.
Fairweather federalism... (Score:4, Interesting)
Why I can't get Verizon FIOS IPTV (Score:4, Informative)
This is not exactly pushing the limits of the bandwidth of the fiber.
Cherries (Score:3, Insightful)
So why should I, the consumer, suffer?
Re: (Score:3, Funny)
In capitalist West the government listens to rich telcos.
In the Soviet Union the rich telcos listen to the government!
some days I really do wonder who is in charge
Re:This IS NOT A Good Thing!! (Score:4, Insightful)
You're talking about marginal profits and not aggregate profit. The local government is making a deal which guarantees that the provider has a monopoly on the market. What's wrong with them negotiating a part of the contract which mandates a rollout plan to all citizens?
So, they have the right to say "NO" but they don't have the power to negotiate if they say "YES"?
Your "other business" comparison is generally ridiculous. Although you could probably come up with some parallels, these would be the exception. What other business has a barrier to entry like the cable and telecom industry? A more appropriate parallel would be giving a convenience store exclusive rights to the market in a particular town, and allowing them to refuse to sell to anyone that isn't within 20 miles of the town center.
Local control is best. We don't need the draconian FCC enforcing the will of the empire on every town and city in the U.S.
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