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The Internet Networking

Time Warner Cable Won't Compete, Seeks Legislation 621

narramissic writes "The good people of Wilson, NC pay $99/month for 10/10 Mbps internet service, 81 TV channels and telephone service. How'd they manage that, you ask? Well, the city-owned and operated cable service called Greenlight came into being when the City of Wilson approached TWC and local DSL provider Embarq and requested faster service for the area. 'TWC refused the request. And so Greenlight was born,' says blogger Peter Smith. 'Now Time Warner Cable and Embarq are upset that they've got competition, and rather than try to go head to head with Greenlight on price and service, they've instead been lobbying the state government of NC to pass laws to put Greenlight out of business. Apparently they're having some success, as the NC State Senate has proposed bills that would do TWC's bidding.'"
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Time Warner Cable Won't Compete, Seeks Legislation

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  • Sickening (Score:5, Insightful)

    by whisper_jeff ( 680366 ) on Thursday April 23, 2009 @11:44AM (#27688295)
    It's sickening to watch massive corporations give up on the ideals of commercialism (competing for the consumer's dollars on the basis of quality, service, and price) and instead simply doing business through legislation (make it illegal for your competition to exist...). I feel like I'm watching someone's Cyberpunk or Shadowrun campaign come together as megacorps take control of governments... It's all sickening...
  • by commodore64_love ( 1445365 ) on Thursday April 23, 2009 @11:44AM (#27688297) Journal

    They have Greenlight and Time-Warner cables running in parallel to one another? Good!!! I wish more communities would do stuff like that. If every city had TW, Comcast, Cox running 3-4 cables in parallel, then the power would be in the hands of the People to choose which one they like best.

  • by erroneus ( 253617 ) on Thursday April 23, 2009 @11:44AM (#27688301) Homepage

    But only when it is convenient. When it isn't convenient, they expect the government to prop up their business model in order to ensure that their profits are maximized and that their competition is none.

    This is an extremely ugly an hypocritical face of modern business today. People want lower prices and more affordable services and if they have to build it themselves to get it, they should be allowed to do it.

    This is not an entirely new story as other communications/media companies have sued municipalities to prevent them from making competitive progress in areas where they otherwise did not want to compete or operate. And these companies won. I am a little lost on what legal justification was used in winning their cases though... anyone have any insight?

  • by jollyreaper ( 513215 ) on Thursday April 23, 2009 @11:47AM (#27688359)

    Bubububbut I thought the market decided these things! I guess I didn't realize that the legislature was on the market as well.

  • by JDAustin ( 468180 ) on Thursday April 23, 2009 @11:51AM (#27688415)

    Corporations have always used the power of government to stifle their competition. It has been this way especially since the advent of mercantilism 400+ years ago.

    It was this way when the East India company was importing tea to England. It was this way with the railroads in the 1800's. It was this way under FDRs New Deal (which had the gove help big corps and put policies in place to screw over smaller ones). Its that way now.

    The product may change over time but the methods used to bury your competition are ancient.

  • Re:Surprised? (Score:4, Insightful)

    by CrimsonAvenger ( 580665 ) on Thursday April 23, 2009 @11:52AM (#27688423)

    Not allowing subscription fees to pay for other city projects - this on the other hand is not necessarily fair.

    This is insanely stupid from TWC's point of view. If I can't charge a little bit extra for my muni broadband to pay for extra police (or a new SUV for myself, or whatever), then I'll just lower my rates to breakeven.

    Which will just make it harder for TWC to compete, since they have to make a profit, and I'm forbidden to make a profit.

  • by Anonymous Coward on Thursday April 23, 2009 @11:53AM (#27688439)
    Demonstrably false, as this is opposite of an example of a "free market".
  • by Anonymous Coward on Thursday April 23, 2009 @11:54AM (#27688459)

    Do you really think that $99 is a good deal?
    How much does TWC charge for similar service?

  • by immakiku ( 777365 ) on Thursday April 23, 2009 @11:55AM (#27688477)
    Not only does it show that these companies should be able to do better than 10-4/phone/35, but it shows that these companies should be able to do better than 10-10/phone/81. This business is definitely an economy of scale with technology being a common resource that can be easily reapplied.
  • Re:Total BS (Score:4, Insightful)

    by Dr. Eggman ( 932300 ) on Thursday April 23, 2009 @11:56AM (#27688487)
    Yeah! Without lobbyist, the politicians would have to do their own research and make decisions for themselves! Just think of it, people whose area of expertise is in law and politics would be deciding laws in all sorts of fields they have no understanding of! And, er, wait...
  • by elrous0 ( 869638 ) * on Thursday April 23, 2009 @12:00PM (#27688557)
    These are the same companies that scream "socialism" every time the government even HINTS at nationalizing anything, but the second they face any REAL competition they run screaming to the government to give them special protected status (with campaign donations and other bribes in hand). Their "free market" means "free for us to rape anyone we want market" and alternatives be damned.
  • Re:Sickening (Score:5, Insightful)

    by tnk1 ( 899206 ) on Thursday April 23, 2009 @12:00PM (#27688565)

    We let that sort of thing happen every time we concede more and more to the government in terms of providing services for us. With all of the extra money and the ability to represent everyone, you suddenly realize that corps don't have to care what individuals want any more, they only have to care what the government wants.

    And the advantage from their perspective is that unlike in the market, where they have to serve millions, when you play to the government, you only have to satisfy a few hundred legislators and bureaucrats. And bribing/lobbying a few hundred people is honestly a lot cheaper than bringing a quality product to market.

    So, if you were a corp, what would you do?

    Government regulation and lobbying controls aren't going to do diddly until people realize the problem isn't with the lobbyists, per se. It's due to the fact that we've created the perfect customer for these corporations. It has incredible amounts of money to spend, not very high standards, a preference for a centralized and monolithic "low bid" sorts of vendors, and of course, it is easily and efficiently manipulated by controlling just a few key people.

    The only question is whether the multinationals need the bloated government or if they can someday discard its bloated corpse and operate like the dystopian sovereign megacorps that you refer to.

  • by Shakrai ( 717556 ) on Thursday April 23, 2009 @12:00PM (#27688571) Journal

    and nothing the government provides or does is any good.

    One could make the counter argument that we wouldn't have this duopoly situation to begin with if Government wasn't so involved in the marketplace. In most parts of the US I can't legally start my own cable or telephone company without signing a franchise agreement with the local government. Said agreements are virtually always exclusive and serve the purpose of shutting out competition.

    Mind telling me what possible public interest is served by prohibiting me from rolling out my own cable service if I've got the capital and the wherewithal to do so?

  • Re:What crap... (Score:5, Insightful)

    by twidarkling ( 1537077 ) on Thursday April 23, 2009 @12:03PM (#27688631)
    Why not? Governments are "For the people, by the people" aren't they? So if the people all say "Hey, we want this. Do it." to their government, and the government does it, and well, more power to them. After all, if the private entities failed to react to customer concerns on such an epic scale, why should we be stuck with them? Aren't private companies supposed to be better by virtue of being able to respond to the changing market more quickly than public institutions? If they need to resort to legislation to keep in business, they're doomed. It's just a matter of sooner or later.
  • Re:Convert? (Score:3, Insightful)

    by ccandreva ( 409807 ) <chris@westnet.com> on Thursday April 23, 2009 @12:03PM (#27688635) Homepage

    Not only easier, but fairer.

    I have no love for TW -- I run a small ISP. But a government-run business charging break-even prices is not fair competition for any business. I would certainly be complaining if it looked like my taxes dollars were being used to compete with me !

    So let them turn it private. If they can THEN charge break-even prices great. More likely, they'll find they can't. Either way, it's then fair competition.

  • Re:Convert? (Score:2, Insightful)

    by Anonymous Coward on Thursday April 23, 2009 @12:04PM (#27688643)

    How do you ensure that a for-profit organization will not act in the direction of how TWC acts?

    First off, it need not be a for-profit company. Or rather, it need not be a publicly traded for-profit company. If you're not publicly traded your shareholders aren't some nebulous concept, they're probably people you know. You see them in the grocery store and on the street. They also aren't in it just for the money - they care about the company and how it behaves, not just how the quarterly earning statements are effecting the stock price.

    Secondly, it won't act the same direction as TWC because that's the selling point. If you're a small company with little name recognition, why will customers choose you over the big guy? "We're not Time Warner" is worth a lot when "being Time Warner" means charging a lot for crappy service.

  • Re:What crap... (Score:3, Insightful)

    by orthancstone ( 665890 ) on Thursday April 23, 2009 @12:06PM (#27688687)
    In this case, gov't needs to be involved. The cable/ISP providers have no intention of doing their customers a favor and have EVERY intention of preventing competition from getting a foothold.
  • Re:What crap... (Score:5, Insightful)

    by JCSoRocks ( 1142053 ) on Thursday April 23, 2009 @12:09PM (#27688749)
    I'm a huge proponent of small government but I actually agree wholeheartedly with this argument. Particularly when you're doing this at the city level. This is a small community (of 50,000) that obviously agreed this was the right decision for them. This sort of project is a large undertaking and I'm sure everyone had an opportunity to voice their opinion. If a monopoly is completely screwing your town over there's no reason you shouldn't be able to organize yourselves and roll your own solution.

    What's happening at the state level where TWC is manipulating the law to prevent this is actually a perfect example of how broken government is the higher up you get.
  • by Anonymous Coward on Thursday April 23, 2009 @12:11PM (#27688777)

    These are also the companies that scream for a bailout when their failed business model leaves them in the red...

  • by tacokill ( 531275 ) on Thursday April 23, 2009 @12:11PM (#27688785)
    Do you want private companies having to compete with the government? Generally, past history suggests that is a bad idea. The government is a special entity with special powers so you have to be very very careful when you allow government to go into "profit based business" - which is what this is. Tax spending on services/infrastructure is one thing. Profit based business is an entirely different animal.

    I have no problem with the idea of busting up the monopolies but you don't do that by making your government compete with private industry. No, instead you encourage OTHER private players to come in and compete with the monopoly (or you pass legislation, tax cuts, or whatever that does the same). If you insist on putting your government "in business", then you will eventually drive out all the other competitors aside from the government. Remember, the government can do LOTS of things that private industry can't so, by default, it's an unfair playing field. Look no further than the banking system right now for an example of how that plays out. Government was never designed to "be in business".

    For a bunch of tin-foil hat guys, the slashdot crowd really puts a lot of faith in government solutions of all kinds.....
    I hate Comcast as much as the rest of you. But I cringe at the idea of my city government being in the ISP business.
  • by erroneus ( 253617 ) on Thursday April 23, 2009 @12:11PM (#27688791) Homepage

    We need a constitutional amendment to kill this kind of crap once and for all.

    Our legislative history is filled with special laws written to serve the interest of single parties and interests; especially business interests. One such law that really sticks in my mind was actually a U.S. Federal Constitutional Amendment called the "Wright Amendment." It wasn't enough to pass a law because the law, as intended, would have been ruled as UNCONSTITUTIONAL. So to prevent that from happening, they made it a part of the constitution. What was the "Wright Amendment?" Well you could google it to get better information than I can provide, but it was essentially a law designed to prevent Southwest Airlines and Dallas's Love Field airport from competing with American Airlines and D/FW airport. Think on this. A general law document designed and intended to LIMIT what the U.S. Federal Government can do, was used to impose limits on the level and quality of service that one air carrier can do in favor of another air carrier. In the end, it never worked. It did push airfares higher and for those who flew Southwest airlines (the only US air carrier that makes a profit while offering lower fares than competitors who are losing money while charging higher fares) required that they make stops before they reached their final destinations limiting the distance a single SWA flight could make when flying out of Love Field. This was written into an amendment to the U.S. constitution!! Think on it. It just doesn't get any dirtier than that.

    A constitutional amendment should be written that government shall not write any law that favors one business, public, private or government, over the interests of another business public, private or government. It is far and away NOT the government's role to interfere with business except in cases where businesses harm the public. It is the government's job to protect the public.

  • by Lendrick ( 314723 ) on Thursday April 23, 2009 @12:11PM (#27688795) Homepage Journal

    After all, Greenlight, being government-run, is by very definition grossly inefficient. Time Warner ought to be able to beat them on both performance and price and still have a wide profit margin.

    Either that or maybe sometimes the government can actually provide decent, efficient services...

  • Re: Convert? (Score:5, Insightful)

    by Black Parrot ( 19622 ) on Thursday April 23, 2009 @12:13PM (#27688827)

    This is ridiculous when a private company is stifling competition.

    The benefits of competition are only of interest to companies as a mantra for getting government regulations eliminated. No company actually wants it.

  • Re:Convert? (Score:5, Insightful)

    by Narpak ( 961733 ) on Thursday April 23, 2009 @12:14PM (#27688843)
    If the companies delivering internet doesn't deliver the speed or quality desired by the citizens of a region or city; then I see absolutely no problem with the people taking matters into their own hands. In fact I would call it democracy in practice. TWC trying to push legislation should be ruled as anti-competitive behaviour and they should be heavily fined.

    If anything should be done it might be the privatization of the newly created service provider. The city should retain a minority controlling share, impose oversight and fair rules; and then let the company exist as a competitor. If TWC want to gain back their customers they should perhaps try to actually provide the services people want, at fair prices and with good service. Instead of using resources that could be better spent trying to hinder and punish citizens who's example should be honoured, respected and emulated.
  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Thursday April 23, 2009 @12:15PM (#27688867)
    Comment removed based on user account deletion
  • Re:Sickening (Score:5, Insightful)

    by Keith_Beef ( 166050 ) on Thursday April 23, 2009 @12:18PM (#27688919)

    It's sickening to watch massive corporations give up on the ideals of commercialism (competing for the consumer's dollars on the basis of quality, service, and price) and instead simply doing business through legislation (make it illegal for your competition to exist...). I feel like I'm watching someone's Cyberpunk or Shadowrun campaign come together as megacorps take control of governments... It's all sickening...

    A corporation that exists to make profit will use any means available to make those profits. If lobbying and back-room deals pay better than R&D, then that's where the corporation will put its efforts.

    I don't like that any more than you, but we have to face the facts: that's how it works.

    If you want corporations to compete on value (i.e., cost/benefit for the consumer), then you need a system where R&D gives better returns than lobbying.

    This kind of stuff has been going on for ever. In feudal times, there were monopolies, guilds, charters; in the renaissance there monopolies, guilds were less influential, but there were still charters; in the 18th century, businessmen like Boulton and Wedgwood would petition parliament for extensions of patents in order to corner markets and build monopolies... TWC is behaving somewhat like the Dutch or British East India Companies... just taking care of business in the most efficient way that the system allows, and if that means using political influence then so be it.

    You can't wish it away. If you want to think of TWC as the enemy and defeat it, you need to understand the strategy and tactics available to your enemy and adapt your own strategy and tactics in consequence. If TWC has access to those who write and enact bills, then get access for yourself, or block TWC's access to that resource.

    K.

  • Re:Convert? (Score:5, Insightful)

    by negRo_slim ( 636783 ) <mils_orgen@hotmail.com> on Thursday April 23, 2009 @12:18PM (#27688931) Homepage
    Personally I don't see how private interests are anything but harmful when it comes to running of important public infrastructures.
  • Re:Convert? (Score:5, Insightful)

    by Red Flayer ( 890720 ) on Thursday April 23, 2009 @12:19PM (#27688963) Journal

    But a government-run business charging break-even prices is not fair competition for any business.

    So?

    Seriously, if the people choose to provide the services themselves, why should they be prohibited from doing so?

    I know, it's anathema to free-market idealists, but the end result is... better, cheaper service.

    TWC does not have a right to make a profit. No entity does. If they can't compete with government-provided service, then they should rightly have no presence in the market.

    Unless of course, you choose to ignore the economics of the issue... please recall from Econ 101 that in an ideal free market, profits will approach zero anyway. TWCs profit is a sign of market inefficiency. The ideal outcome is for both (or more) competitors to fight over minimal profit.

  • by wonkavader ( 605434 ) on Thursday April 23, 2009 @12:22PM (#27688997)

    Yes it is an no it's not. This is a semantics thing. You hear "free" and assume it's structured to be a level playing field. They hear "free" and assume it means that they are free to bribe, cheat, steal and pass laws to screw others without prosecution.

    The difficulty here is that we associate the word "free" with good things. This lead to terms like "pro-life" and "pro-choice" instead of "anti-choice" and "pro-death" -- the terms used by the controllers of the message about the other guys.

    There's no point in having "free" market discussions, therefore. You'll never agree until you abandon the term to the guy who controls the terms (ie. has more money to influence the media).

    Which means you're screwed from the outset: You're bringing a well-reasoned argument to a knife fight.

  • Re:Convert? (Score:5, Insightful)

    by cptdondo ( 59460 ) on Thursday April 23, 2009 @12:26PM (#27689073) Journal

    I work for a government and I think you've been drinking too much Limbaugh kool-aid...

    I am always amazed how industry has been yelling "big bad inefficient government; privatize now and we'll do it better cheaper quicker!"

    Now that government is actually competing, they're yelling "big bad unfair government; they can do it cheaper than us and we need protection!"

    So what is it? If government is so "inefficient" why does industry need protection? If privatizing is so much better, why worry about government getting into your business niche?

    In other words, government all too often does do things "better cheaper quicker" - we may pay a lot for a consultant, but our CEOs earn $100K/year, and not $100M/year. You can buy a lot of consultants for what one private industry CEO gets in a year.

  • Re:Total BS (Score:3, Insightful)

    by jeffmeden ( 135043 ) on Thursday April 23, 2009 @12:30PM (#27689181) Homepage Journal

    You may be sarcastic, but it does beg the question: Isn't that what we pay those people for? Isn't it their damn job to investigate what to do and what laws to pass? Isn't that basically their only reason to exist, to find out what's "best" for what is considered the common good and act in this manner?

    If they cannot act that way, fire them. Yes, fire them. Out of a cannon if necessary, but they are essentially our employees. If I'm not satisfied with the performance of an employee, I send him packing and hire someone who can do his job.

    You have a chance every 1, 2, 4, or 6 years (depending on the position) to do just that. Fire them! Get a new guy! Of course, you can't make the decision by yourself and need to get the agreement of a plurality of your peers... but hey how hard could that be? It's funny how we really do get just the system of government which we deserve. Except by funny, I mean heartbreaking.

  • Re:Sickening (Score:5, Insightful)

    by Red Flayer ( 890720 ) on Thursday April 23, 2009 @12:31PM (#27689207) Journal

    We let that sort of thing happen every time we concede more and more to the government in terms of providing services for us. With all of the extra money and the ability to represent everyone, you suddenly realize that corps don't have to care what individuals want any more, they only have to care what the government wants.

    Hogwash. We let that sort of thing happen every time we concede more and more to the corporations in terms of regulation and oversight.

    The problem is not big government providing services. The problem is failure of public (government) oversight and regulation. And the reason this has happened is because the public has handed control of their government to the big corporations, by failure to exercise due diligence in electing officials, and the failure to practice due diligence in overseeing the actions of their elected officials. Largely this is an issue of scale -- on average, a US Representative is responsible for something like 560,000 constituents. There is no way to have personal accountability. Even on the state level, it's impossible. NC, the state in question here, has 50 assembly members for a pop of 8 MM -- that's 160,000 constituents per Assemblyman.

    No, my fried, the problem is not allowing the government to provide services. The problem is allowing the government to NOT oversee and regulate monolithic corporate entities.

    Even if we had a small government that didn't get involved so much, we'd still have the problem of the government being bought by corporations... it would be even worse than now, since in some cases the government can and does provide cheaper and better service than private entities would.

  • Re:Convert? (Score:4, Insightful)

    by Anonymous Coward on Thursday April 23, 2009 @12:32PM (#27689223)

    Yeah, I own a private road business, and all this government owned and operated road business cuts into my profits. We should make government owned roads illegal, that way I can charge everyone who uses it as much as they will take short of a revolt and make a tidy profit.

    Seriously, these guys are producing poor results and charging a ton of money for it. This is pretty standard, but suing public townships who try to set up public works their citizens strongly favor so that the money will flow in their direction is extremely damaging. I cannot abide by that.

  • Re:Convert? (Score:5, Insightful)

    by faedle ( 114018 ) on Thursday April 23, 2009 @12:33PM (#27689255) Homepage Journal

    Except, if Time Warner is like most cable companies, they are not operating on a level playing field either. Most cable companies get a tax break on personal property taxes, often have subsidized costs on rights-of-way (because they are using municipally-owned RoW for their cables), and often had many of the startup costs subsidized by municipal and regional governments as part of the franchise agreements.

    You, as a business owner, don't have a right to make money. For a group of citizens to invest their tax money to build infrastructure, it means the broadband providers have failed as business people.

    TWC had a chance to provide the service, they declined. At that point, their moral right to complain disappeared.

  • Re:Total BS (Score:4, Insightful)

    by networkBoy ( 774728 ) on Thursday April 23, 2009 @12:34PM (#27689285) Journal

    apparently you missed the memo about our country being a representative republic, not a democracy.

    Our representatives do, in fact, work for us and can be fired (recall election / impeachment).
    -nB

  • by commodore64_love ( 1445365 ) on Thursday April 23, 2009 @12:38PM (#27689363) Journal

    >>>Time-Warner...is trying to legislate the competition out of existence

    Yeah I know. It's a shame that the North Carolina government is not constrained in its power to collude with private companies. If only there were some kind of contract, a piece of paper if you will, that specifically enumerated the power NC could exercise, and reserved all the other powers to the citizens. Then all of Time-Warner's posturing would not matter, because the NC government would be powerless to grant such a monopoly.

    It's a shame we don't have anything like that.

    Oh wait we do! It's called the North Carolina constitution. I can not lay my hand on any part of that document which gives NC the power to grant a monopoly to Time-Warner and/or force competitors like Greenlight out of business. Such an action by the politicians is unconstitutional.

  • Re:Convert? (Score:5, Insightful)

    by broen ( 1197939 ) on Thursday April 23, 2009 @12:44PM (#27689451)

    I know, it's anathema to free-market idealists, but the end result is... better, cheaper service.

    I would suggest that this is completely in line with free-market idealism. They found a better solution and decided to go with it. The only thing anathema to a free market is coercion (i.e., punishment). For example, if they found a better solution but were prevented by law. In that case the punishment is fines or imprisonment. And that is exactly what TWC is doing: using the government to punish the free-marketers who found a better solution.

    The only thing anathema to a free market is coercion.

    (repeated for emphasis)

  • by bigtrike ( 904535 ) on Thursday April 23, 2009 @12:45PM (#27689475)

    However, due to government provided monopolies given because businesses are allowed to lobby the government, this doesn't happen.

    The best solution is probably to strip the cable and phone providers of its guaranteed monopoly and let other businesses compete.

  • Re:Convert? (Score:5, Insightful)

    by interkin3tic ( 1469267 ) on Thursday April 23, 2009 @12:48PM (#27689537)

    But a government-run business charging break-even prices is not fair competition for any business. But a government-run business charging break-even prices is not fair competition for any business.

    It's not fair competition because it's not competition: time warner refused to give them fast service, THEN greenlight was born. Furthermore, TFA points out that tax money is NOT used!

    What is happening here is TWC offering B, the community wanting A and making it themselves, so TWC is trying to ban A so everyone has to buy their B.

    Anyway, even if this were not the case, who cares? Maybe my pink roots are showing, but if the people of Wilson are getting a better deal, so what if it's not strict capitalism? I don't think most of us are capitalist because we think that's what God wants us to be. The only reason to go with capitalism is because it's generally more efficient. In cases of monopoly, like this basically is, it apperantly isn't more efficient. So why not do this?

    And it's not like government goliath vs david TWC. TWC has way more money to invest, they have much more of an advantage than this grassroots organization. That they're unable to compete is all their failure and they should eat it.

  • Re:Convert? (Score:1, Insightful)

    by Red Flayer ( 890720 ) on Thursday April 23, 2009 @12:50PM (#27689563) Journal

    The only thing anathema to a free market is coercion.

    Becuase it is government that is acting, there is coercion involved. Anyone dissenting is forced to participate (via taxes on the debt service on the bonds for the initial buildout (of what, some $30 MM?)).

    Government intervention in the market, whether as a primary actor, or via impact (regulatory) on a primary actor, is anathema to a free-market idealist.

  • Re:Convert? (Score:5, Insightful)

    by Mantrid ( 250133 ) on Thursday April 23, 2009 @12:53PM (#27689639) Journal

    I think most complaints are about the Federal Government. State governments can be bad as well, but when you get down to the municipal level, things can get a lot more efficient.

  • by seer ( 21011 ) on Thursday April 23, 2009 @12:58PM (#27689725) Homepage

    Yeah! And we should make sure they get out of the Water business, since both Coke _AND_ Pepsi have bottled water now, right?! I mean, I can't wait until I can use the new Coke Shower or the Pepsi toilet!

    And man, how cool would it be if I could drive on GM Roads! I'm sure they'd be making a profit if they had their own roads. If only it wasn't for that nasty government making all of their roads public. I mean, look at what the auto industry did for the wonderful Public Transit system was have in the U.S. now! Wow! I mean, who wouldn't want to wait for the once and hour bus, pay over two dollars a trip, and have a 14 minute trip take almost an hour! /Sarcasm

    We need an IP infrastructure to be in public hands, and we need it ten years ago.

  • Re:Convert? (Score:5, Insightful)

    by bleh-of-the-huns ( 17740 ) on Thursday April 23, 2009 @12:59PM (#27689755)

    Wasn't your tax money used in the first place when TWC and almost every other utility, private or otherwise), got subsidies and rights of way to run their initial coax/fiber lines in the first place.

  • Re:Convert? (Score:3, Insightful)

    by sckeener ( 137243 ) on Thursday April 23, 2009 @01:01PM (#27689789)

    So what is it? If government is so "inefficient" why does industry need protection? If privatizing is so much better, why worry about government getting into your business niche?

    I would worry about the Fedex/UPS vs post office comparisons. In the case of UPS & Fedex, they are limited in how low they can charge their services. UPS and Fedex get around this by offering more services than the Post Office and bring more value to the customer....

    still...UPS/Fedex can't compete with the Post Office. Ask managers in those companies and they'll tell you how much they hate it and think they can do a better job than the Post Office.

    Now if this ISP is playing by the same rules that TWC has to play by, then I see no issue; however if the government ISP is getting around some issues because they are the government, then I have a problem with it.

    Easiest solution is to privatize the government ISP and then they should be playing by the same rules.

    The next best solution is to audit both and make sure they are playing by the same rules. Maybe get some group accounting group to make sure no monopoly like practices are occurring on either side. If there are, document them and fix them.

  • Re:Convert? (Score:3, Insightful)

    by bleh-of-the-huns ( 17740 ) on Thursday April 23, 2009 @01:07PM (#27689887)

    They are not sueing, they are lobbying the state gov to override the rights of local gov's to prevent them from providing services, whether or not they use tax money (and its already been stated that so far almost all of the city/county gov provided services use bonds, and not tax dollars).

    And more to the point, who cares if it does indeed use tax dollars, if 90% of the populace of a particular area vote in favour of a project that uses tax dollars, that to mee seems like democracy at work, majority rule, because obviously 90% of the populace are unhappy with the current situation, which in many cases is poor service from gov provided monopolies....

  • Re:Convert? (Score:4, Insightful)

    by geekoid ( 135745 ) <dadinportlandNO@SPAMyahoo.com> on Thursday April 23, 2009 @01:10PM (#27689933) Homepage Journal

    Compared to almost all corporations with more then about 100 people, the feds run very efficiently.

    There are literal 10's of thousand of projects going on at any given time that run smooth, on time and at budget*.

    Sure, sometimes things don't work out that well, but overall they are better at doing certain things.

  • Re:Convert? (Score:3, Insightful)

    by master811 ( 874700 ) on Thursday April 23, 2009 @01:11PM (#27689967)

    Except it says BREAK-EVEN, so unless you know for sure they are using additional tax money to run the business, then what exactly is the issue??

  • Re:Convert? (Score:3, Insightful)

    by geekoid ( 135745 ) <dadinportlandNO@SPAMyahoo.com> on Thursday April 23, 2009 @01:13PM (#27690015) Homepage Journal

    Too many utilities run very well.
    You could Tax and make it free like roads roads.
    or charge and use bonds to pay for large changes, not taxes.

    "does anyone in gov. EVER look at the cost of something?"

    every day all the time. In fact some of the best cost analyst in the world work for the government. Nice attempt to propagate that myth.

  • Re:Convert? (Score:3, Insightful)

    by geekoid ( 135745 ) <dadinportlandNO@SPAMyahoo.com> on Thursday April 23, 2009 @01:16PM (#27690071) Homepage Journal

    A) with a government agency you ahve a lot of writes to find out what they collect and what they do with it, and to change it. With a private company you do not. Why do you think when a 3 letter agency wants to skirt the law they do it through a private company?

  • Re:Convert? (Score:5, Insightful)

    by frank_adrian314159 ( 469671 ) on Thursday April 23, 2009 @01:28PM (#27690327) Homepage

    still...UPS/Fedex can't compete with the Post Office. Ask managers in those companies and they'll tell you how much they hate it and think they can do a better job than the Post Office.

    I think they'd have a hard time providing both the coverage and all services of the USPS. When you actually talk to the managers, they really only want to provide service to high-density/volume areas. The hinterlands, not so much. So, as usual, private enterprise wants to cherry-pick the public service, letting the rest of us pick up the now increased costs for the problematic customers.

    BTW, FedEx can't get a package to my (notably small) hometown in less than two days. The USPS can get me 24-hour priority delivery. Why is that? Somehow I think it has something to do with the fact that FedEx doesn't find it profitable to do so.

  • Re:Convert? (Score:3, Insightful)

    by Austerity Empowers ( 669817 ) on Thursday April 23, 2009 @01:39PM (#27690545)

    My neighbors here in TX would prohibit using the network for anything deemed "pornography", probably ask that it be shut down on Sunday morning for church, and probably would prevent anything that seemed like anonymity.

    I might tolerate some of that for better service than what AT&T provides (which honestly, is just about anything)...but it's definitely not a utopia.

  • by kindbud ( 90044 ) on Thursday April 23, 2009 @01:42PM (#27690615) Homepage

    Do you want private companies having to compete with the government?

    Sometimes yes and sometimes no. In this case, yes. Municipal internet is a great idea just like municipal water, fire, police, trash collection, etc. I like my utilities to be provisioned at cost. Private enterprise won't do that.

    Generally, past history suggests that is a bad idea.

    Can you provide an example and explain how it applies to this case?

  • Re: Convert? (Score:5, Insightful)

    by Touvan ( 868256 ) on Thursday April 23, 2009 @01:49PM (#27690759)

    Exactly, especially when the regulations are not beneficial. In the case though, TWC is looking for regs that harm their competition, and that they are ok with. The same goes for bailouts, which are a form of regulation. Real companies have never behaved as though they want real, fair markets with free access. They just want to win, and are happy to have that win handed to them by the government.

    This should all be plainly obvious at this point, and anyone who thinks that mantra has any meaning beyond a marketing ploy to fool citizens into working against their own interests, well, there are some painful conclusions to draw about those people.

  • Re:Convert? (Score:4, Insightful)

    by Touvan ( 868256 ) on Thursday April 23, 2009 @01:53PM (#27690875)

    So should all government utilities only run at a profit? The point is, these things cost money, and someone has to pay for it. The question then, Is it cheaper (per user or if important enough, per captica) to use tax money instead of allowing a company to skim a profit (or bull doze a profit in the case of large American companies)?

    If your questions about efficiency are only centered on turning a profit, then you are probably missing the point of a public utility.

  • Re:Convert? (Score:4, Insightful)

    by badasscat ( 563442 ) <basscadet75@NOspAm.yahoo.com> on Thursday April 23, 2009 @02:01PM (#27691035)

    If the companies delivering internet doesn't deliver the speed or quality desired by the citizens of a region or city; then I see absolutely no problem with the people taking matters into their own hands. In fact I would call it democracy in practice.

    It's more like socialism in practice. Not that there's anything wrong with that, but let's call it what it is.

    Ok, there's a bit of a distinction here. "Citizen-owned" and "City-owned" are two different things. A "citizen-owned" entity would just be a corporation like any other, subject to the same rules as Time Warner. Time Warner itself is "citizen-owned". But such a competing corporation couldn't operate in most cities because of franchise rules that on the one hand keep there from being a tangled mess of wires and torn-up streets everywhere but on the other hand also sanction monopolies.

    This is a city-owned entity. It is a government organization that is undercutting a private company by selling its products and services at cost. There's no way for any private for-profit company to "compete" with that. Socialism is not about competition; it's about government providing services at the lowest cost possible. Businesses exist to be profitable; they're not charities. The goal of a business is to sell products for the highest price possible, not the lowest.

    Now, I'm not arguing that there's anything wrong with what this city is doing. But I wonder how many people who are criticizing Time Warner over this really understand what they're arguing in favor of. They're arguing in favor of an economic system that is designed to be anti-competitive and to provide services for less than a private company ever could. Given that most seem to be criticizing Time Warner for "not competing", I would say very few understand this.

  • Re:Convert? (Score:5, Insightful)

    by gestalt_n_pepper ( 991155 ) on Thursday April 23, 2009 @02:12PM (#27691259)
    Democracy means you get to choose *either* the socialist or the capitalist solution. As the health care system, the banking system, the real estate market and cable de-facto monopolies have shown, capitalism is NOT a one-size-fits-all solution.
  • Re:Convert? (Score:5, Insightful)

    by Narpak ( 961733 ) on Thursday April 23, 2009 @02:23PM (#27691479)

    But I wonder how many people who are criticizing Time Warner over this really understand what they're arguing in favor of. They're arguing in favor of an economic system that is designed to be anti-competitive and to provide services for less than a private company ever could.

    This is conjecture. Just because people are critical of the way TWC have handled this case, and just because they took matters into their own hand to find one solution (temporary or permanent}; does not mean that it have to lead to the implementation of a socialistic economic variation. Even if you accept that the solution they adopted here is moving into one of the fundamental concepts upon which the numerous variations of socialistic philosophy is based.

    I would urge you, and others, to keep in mind that reality is not easily put into one category or another. Socialistic and Capitalistic concepts and ideas are not all Either Or; one or the other. What matters is practical implementation of ideas; something that makes no distinction between the various ideologies behind the implementations chosen or attempted.

    While they people in question here might have taken the path the did because of perceived flaws in the system in place; does not mean anyone is advocating a total replacement of the system; or that following up on what they did with Greenlight will necessarily lead to the total implementation of a variant of a socialistic economical model; or that all socialistic economical models are hostile to all sorts of competition.

    Of course on the last point I will agree; very few seem to understand this; or that reality is not easily divided into ideological camps. Few things are black and white, one or the other. Our society and government(s) are what we make them, shaped by our ideas and actions.

  • Re:Convert? (Score:2, Insightful)

    by zindorsky ( 710179 ) <zindorsky@gmail.com> on Thursday April 23, 2009 @02:53PM (#27692109)

    Government intervention in the market, whether as a primary actor, or via impact (regulatory) on a primary actor, is anathema to a free-market idealist.

    Then free-market idealists are living in a fantasy world.

    In reality, even if you start with a free-market utopia, eventually some players consolidate power and then use it to stifle competition. We've seen it over and over again.

    Yes, sometimes the government is the player that has too much power and quashes the free-market. But at least (in theory) governments are beholden to the people.

    Really, these libertarian types remind me of old-school communists: their ideas sound cool but fail to take human nature into account.

  • Re:Convert? (Score:3, Insightful)

    by Firehed ( 942385 ) on Thursday April 23, 2009 @03:24PM (#27692625) Homepage

    Good for them. I'd make equally [in]valid requests to prohibit using the network for anything deemed "AOL", and that the network randomly get a speed boost for at least an hour a day. While I'm at it, all traffic will be encrypted at all times and the data retention policy will destroy all logging not critical to billing and other operations, and be destroyed once the operations for which the data was kept have been performed, anonymizing whenever possible.

    If they want to request that a utility (which is what it would be, in this case) be run a certain way in order to suit their lifestyle, I can make similar requests to suit my own lifestyle. That doesn't stop the request being complete and utter bullshit, even if mine are going to be a lot more popular with the slashdot crowd than what your neighbors will want.

  • Re:Convert? (Score:4, Insightful)

    by aaandre ( 526056 ) on Thursday April 23, 2009 @03:24PM (#27692643)

    Unfortunately corporations are structured in a way that only benefits greed and shareholders, not stakeholders. If bullying, corruption and toxic law promise a higher profit, even by a margin, that's where these entities put their efforts. Better service and healthy competition do not guarantee profits higher than the promise of competition-killing laws.

    If corporations were truly persons, many of them would be in jail or mental health institutions.

  • Re:Convert? (Score:5, Insightful)

    by the_B0fh ( 208483 ) on Thursday April 23, 2009 @03:41PM (#27692899) Homepage

    Excuse me, english is my fourth language, so, pardon my french, but what the fuck are you talking about?

    TWC was invited to come in and provide the service. They refused. So the city built its own. And now you're saying TWC can't "compete" with that? Well, too bloody bad. The government offered it to TWC, and TWC turned it down. And now they want to cry "bad city"? Well, I'd like a pony with that too.

  • Re: Convert? (Score:3, Insightful)

    by DarkOx ( 621550 ) on Thursday April 23, 2009 @04:32PM (#27693693) Journal

    That is a problem with government not with businesses. Business should be seeking to win government should not be enabling them to cheat! Certainly not explicitly in the form of bailouts and granted monopolies. Ideally government would seek to avoid being gamed, where regulatory legislation is passed to that is more beneficial or less harmful to one player than others.

    The problem is the government is currupt through and through, its structure, our constitution, and stat constitutions are probably fine but the people at all levels everywhere need to be thrown out. The president, Congress, the Senate, Justices on almost all our courts at the federal level. Most states would be well served by a complete house cleaning as well. It might be a good idea to toss out last 40 years or so legislation and start over.

    The biggest problem is though people are lazy and way to willing to accept style over content. When this nation started voters read pamphlets like Federalist and Anti-Federalist papers which laid out complex arguments and political theory. Today they vote based on who can come up with a catchy slogan like "Yes we can!". So the biggest jerk wins.

    When people hear "Yes we can?" the response should be "Okay, that may be but should we really and explain to me why you think that, essay format response preferred."

  • by sjames ( 1099 ) on Thursday April 23, 2009 @07:30PM (#27695967) Homepage Journal

    This should be a big clue to the pro privatization crowd who routinely claim that government provided services are inevitably many times more costly or much poorer quality than what a corporation would provide.

    TW clearly doesn't believe it can compete with what is already offered. If they did, they'd just compete Greenlight into the ground and save the legal fees.

  • by kindbud ( 90044 ) on Monday April 27, 2009 @07:21PM (#27738803) Homepage

    Riddle me this: What incentive does your municipal internet have to improve services over time? or even offer the level of service you desire?

    What incentive is there for your local cable internet monopoly to do the same? Are they doing it? I see stores about fee increases and bandwidth caps. Is that meeting customer demand? Where are these customer that are demanding higher fees for less service?

    Your question assumes private industry is doing those things. But the fact that there is a demand for municipal internet service says private industry isn't doing that everywhere it could. Instead, they are seeking laws that prevent municipalities from filling in the gaps in coverage of private for-profit service. Private internet is intervening in the workings of the market by trying to use the law to prevent municipal providers from filling in the gaps where they aren't meeting customer demand. If that isn't anti-competitive and anti-consumer, then I don't know what is.

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