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Telecoms Suing Municipalities That Plan Broadband Access 288

Law.com has up a review of ongoing and historical cases of telecoms suing municipalities that plan broadband networks. In many cases those same telecoms have spent years ignoring as potential customers the cities and towns now undertaking Net infrastructure projects, only to turn around and sue them. One lawyer who has defended many municipalities in this position says, "This is similar to electrification a century ago when small towns and rural areas were left behind, so they formed their own authorities." Bob Frankston has been writing for years about the financial model of artificial scarcity that underlies the telecoms businss plans. This post gives some of the background to the telecoms' fear of abundance.
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Telecoms Suing Municipalities That Plan Broadband Access

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  • open access (Score:4, Insightful)

    by QuantumG ( 50515 ) * <qg@biodome.org> on Monday July 07, 2008 @08:08PM (#24092161) Homepage Journal

    Municipalities want to pay for fiber to connect them to the metropolis? Fine. But that fiber has to be open for everyone. They don't get to play favorites with the telcos.

    • Re:open access (Score:5, Insightful)

      by TubeSteak ( 669689 ) on Monday July 07, 2008 @08:31PM (#24092427) Journal

      Municipalities want to pay for fiber to connect them to the metropolis? Fine. But that fiber has to be open for everyone. They don't get to play favorites with the telcos.

      Maybe you're confused.

      Municipalities want to build out broadband networks and make them the 5th utility, alongside natural gas, heating oil, water, and electricity. The Telcos are suing to prevent Municipalities from doing this.

      • Re:open access (Score:4, Insightful)

        by QuantumG ( 50515 ) * <qg@biodome.org> on Monday July 07, 2008 @08:34PM (#24092461) Homepage Journal

        Yes, and the bits will get from their fiber to the Internet via MAGIC.

        You obviously have gotten everything you know about this issue from the article, which is poor on details.

        The Municipalities are cutting deals with Telcos. They are playing favorites.

        • by keithjr ( 1091829 ) on Monday July 07, 2008 @09:02PM (#24092731)

          Last time I checked, lawsuits are not typically the way one cuts deals.

        • Re:open access (Score:5, Interesting)

          by TubeSteak ( 669689 ) on Monday July 07, 2008 @09:03PM (#24092743) Journal

          The Municipalities are cutting deals with Telcos. They are playing favorites.

          Okay, maybe I'm confused... Are you talking about the status quo, which is Munis playing favorites with the Telcos?

          Or are you saying that the Munis are cutting deals with Telcos w/regards to Municipal broadband? Because if that's what you're saying, you should do a little more explaining, rather than decry the lack of information in TFA.

          Yes, and the bits will get from their fiber to the Internet via MAGIC.

          Building out a Municipal broadband network and purchasing bandwidth directly from a Tier 1/2 ISP is not the same thing as giving [Telco] a monopoly to build out their own network.

          Or am I missing something?

          • Re: (Score:3, Interesting)

            by Mattsson ( 105422 )

            I don't understand the base that they use for suing.
            Is it illegal for municipalities to offer services that can compete with corporations in the US?

            Or are they suing because they feel that they're choosing the wrong ISP?

            If it's the later, the municipalities should build the infrastructure and offer all ISP's to compete inside this at equal terms...
            I sit on such a network and have about 8 competing ISP's to choose from inside the same physical network.
            Competition has a great impact on quality and pricing. ^_

        • Re:open access (Score:5, Interesting)

          by RulerOf ( 975607 ) on Monday July 07, 2008 @10:07PM (#24093305)

          Yes, and the bits will get from their fiber to the Internet via MAGIC.

          No, no, they don't. Those bits would travel to the internet via Peering Agreements [wikipedia.org] with Tier 1 ISP's. [wikipedia.org] Bandwidth that is effectively paid for by the bit. Tier 1 ISP's don't pay eachother to swap data, because each considers traffic from the other to be just as important as its own.

          Interestingly enough, if municipalities were to bond together to form a network large and important enough (maybe they could buy a couple /8's from Ford or whoever) to contain enough traffic to meet the absurd "settlement free" peering agreement requirements [atdn.net] put forth by the cartel we know as Tier 1 ISP's... now that would be interesting.

          • Re: (Score:3, Informative)

            by Daengbo ( 523424 )
            What I find amusing is that, in most cases, the telcos have been given monopolies by the municipalities, so what grounds would the telcos have to sue the munis on? It's all very screwed up.

            Ultimately, though, the U.S. consumer gets little choice in most cases.

            Somehow, here in Korea, I have a choice of several broadband providers, including one that offers unmetered 100Mb/s downstream. There are also multiple Wifi systems for larger towns, though none in my little tucked-away village.
        • Re: (Score:3, Informative)

          by sjames ( 1099 )

          Yes, and the bits will get from their fiber to the Internet via MAGIC.

          More likely, they would buy bandwidth and internet connectivity by contract with a provider. A contract isn't playing favorites. Alternatively, if they have a great deal of traffic, they might buy transit to a peering point.

          The telcos are suing because they want to be the only player in town who owns the last mile. The last thing they want is to have the last mile run at cost by the people (through their government). They will contract for internet connectivity or transit if that's all they can get but they

      • Don't forget the sewers! There's something that we should all hope is never be left to the vagaries of mysterious "market forces".

      • by DigitAl56K ( 805623 ) * on Monday July 07, 2008 @08:57PM (#24092685)

        Here is the problem I see with ISPs in general.

        You tend to get internet, phone, and TV services from a single provider. Unfortunately, phone services will go away as a revenue stream as people move to VOIP. I know plenty of people who have also canceled their tv service because they only watch a few shows and they prefer to get them online at their convenience. This means that providers loose the revenue attached to phone and tv services right off the bat. Then you have to consider how many big ISPs are also media industry giants and have a vested interest in ensuring you continue to consume media through premium channels and channels laden with advertising. They don't necessarily want you watching things over the net at your convenience. So we have ISPs fighting against P2P claiming "conjestion", while refusing to upgrade their backbone, killing their newsgroup services, and imposing bandwidth caps with costly per gigabyte charges for subscribers who exceed them.

        Of course, the ISPs can't afford to lose even these "undesirable" users to a municipality, because as soon as they do they can no longer impose p2p throttling and bandwidth caps as a measure to slow people moving away from their established channels and services, and their content is harder to monetize. So IMHO they're going to fight to keep people locked into a service that they're also working feverishly to lock down to their benefit and the detriment of consumers.

        But that's just my $0.02 ..

        • Re: (Score:3, Insightful)

          by pdemon ( 313972 )

          just removing a wrong mod

        • by plasmacutter ( 901737 ) on Monday July 07, 2008 @09:55PM (#24093219)

          When the power goes out, so does VIOP. Eventually a mobile also has to be charged, and murphy's law states the power will go out on the evening it's due to be charged.

          The redundancy offered by self-powered land lines is something which cannot be so readily ignored, at least to me.

          • Re: (Score:2, Insightful)

            If you have portable phones, like most people, you lose power, you lose your phone also. I bought a $10 non portable phone just because the power when out and I lost the use of all my phones.
          • Re: (Score:3, Insightful)

            by AvitarX ( 172628 )

            Mobiles can be charged in all sorts of ways:
            1)car
            2)USB from laptop
            3)Double A's
            4)For the truly hard core hand crank

          • by ScrewMaster ( 602015 ) on Monday July 07, 2008 @10:53PM (#24093959)
            Sure, POTS runs off batteries at the CO, but nothing says you can't run your cable/DSL modem and VoIP box from a battery. That's what I do. I've coasted through a number of power failures with no loss of service (I have Comcast as my ISP and AT&T's Callvantage for my VoIP service.) Plus which, the AT&T service allows you to assign a backup cellphone number, to which all incoming calls are routed in case they can't get through to your VoIP unit.
        • by nine-times ( 778537 ) <nine.times@gmail.com> on Monday July 07, 2008 @10:52PM (#24093955) Homepage

          You tend to get internet, phone, and TV services from a single provider. Unfortunately, phone services will go away as a revenue stream as people move to VOIP. I know plenty of people who have also canceled their tv service because they only watch a few shows and they prefer to get them online at their convenience. This means that providers loose the revenue attached to phone and tv services right off the bat. Then you have to consider how many big ISPs are also media industry giants and have a vested interest in ensuring you continue to consume media through premium channels and channels laden with advertising.

          Yup. It's a problem. People often focus on the problem of limited choices in ISPs-- that your only real choice in a given area is usually "the phone company" or "the cable company"-- but they usually fail to recognize the conflict of interest involved in owning multiple points in the chain. Verizon, for example, is the owner of the infrastructure, the ISP, and the phone service provider. So right off, they aren't going to want VOIP to be successful, but also they don't have much interest in seeing successful alternative ISPs over their own infrastructure.

          Cable companies can be even worse. Like with TimeWarner Cable, you have the same problems as Verizon, but substitute "cable TV" for "phone service". But in addition to that, their parent company also owns a bunch of the content being delivered on their TV service. So they own the infrastructure, they're the ISP, they provide a video service, and they provide the video content that they're providing in that service.

          Now maybe there's some independence between those functions, but there's still a conflict of interest. As the company building infrastructure, it would normally be in your best interest to build infrastructure everywhere so that you could get paid. As the owner of the infrastructure (if you weren't an ISP) it would be in your interest to foster ISPs and new services who would pay for a variety of uses of that infrastructure, instead of putting all your eggs in one basket. If you were the ISP, anything which made people want access to the internet would be to your advantage. As the video/voice service provider, you'd want the best/fastest network possible. As the content owner, you'd want your content on every possible channel (that makes money for you).

          But since these companies basically run the whole supply chain, their interests are different. Building the infrastructure comes out of their own pocket, they don't want to build anything without knowing it'll provide the best ROI, so they don't bother building in lots of places. As the owner of the infrastructure, they want to restrict its use to pushing their own services. As the ISP, their interests are best served by restricting usage, as much as possible, to pushing their own content and services. As video/voice service provider, your interests are served by seeing Internet service being slow outside of a QoS for your own services. As the content owner, you want to restrict your content to channels that you control, and also use those channels to push/advertise your content.

          All of this is a bit of an oversimplification, but I still think we would be well-served by breaking some of these functions out into separate companies. Primarily I have in mind that whoever builds/maintains the infrastructure should be forbidden from providing any services on that infrastructure. I admit that I'm not an expert in telecommunications or economics, but it seems reasonable to me.

          If it's not possible to build infrastructure by itself, without providing services, then it seems like an argument in favor of a completely public infrastructure.

          • Re: (Score:3, Insightful)

            I wonder about the competition that VoIP presents. Right now, I'm paying to split a phone line. This person already has land line phone service, I'm paying for the DSL on top of the service, splitting the internet thru a router. I'm also paying for VoIP service on top of that, because I don't want to split a phone number with someone. I've complained that the telco advertises heavily for DSL service for "just $25.99" or some such number. This is if you are already paying ~$15 +taxes and additional char
      • Re:open access (Score:4, Informative)

        by Z34107 ( 925136 ) on Monday July 07, 2008 @10:23PM (#24093539)

        Reading the article, it sounds like the telcos are suing over anti-competitive tactics used by the cities. (Telcos suing the government for monopolistic practices? Reads like a certain slashdot meme...)

        Attorneys for telecommunications companies say the litigation is needed because municipalities with the ability to borrow money cheaply -- and not hobbled by the need to return a profit -- have unfair competitive advantages

        ...which is an interesting point. I'm inclined to give some sympathy to the telcos because of another bit in the article:

        Goodnight cited an association of Utah cities formed to promote the construction of a broadband networks in smaller cities and rural areas. "What we found during discovery was that the cities were providing facilities and personnel at no cost, interest-free loans and, in some instances, outright cash infusions," he said.

        So, the Telcos make it sound like municipalities are arbitrarily picking "winners" in the broadband market. Kind of a no-no. But, I wonder if that's really the case, especially given the cities complaint of lack of service. Can you sue the city for anti-competitive practices (or whatever the actual suits are about, the article doesn't say) if you weren't competing there? If no one was offering broadband services prior to the cities mucking about?

        I like the typo at the end, too:

        A motion for dismal is scheduled to be argued on July 18.

        (Sounds like it's already pretty dismal.)

        • by davide marney ( 231845 ) on Tuesday July 08, 2008 @08:48AM (#24098613) Journal

          See, here's the thing: telcos do not have a "right" to compete for these services. Rights belong to the people, not to private businesses.

          The people, through their various branches of government, decide what are the rules and laws under which business can operate. The people, through taxes, fees, and bonds, provides the funding. The people, through our elected representatives, entirely owns the "public" sphere and everything that operates within it.

          We are our own sovereign entity. No private enterprise can legitimately claim to "compete" with us; there is no government other than what we have established.

          The whole foundation of the telco's argument is built on sand. Something to think about ...

      • Re: (Score:3, Interesting)

        by mpe ( 36238 )
        Municipalities want to build out broadband networks and make them the 5th utility, alongside natural gas, heating oil, water, and electricity.

        No doubt there are still places where such utilities are owned by local government...

        The Telcos are suing to prevent Municipalities from doing this.

        Maybe they should counter sue arround a century's worth of "back rent" on the public land these telcos use to run their cables.
    • Re:open access (Score:5, Insightful)

      by jc42 ( 318812 ) on Tuesday July 08, 2008 @09:46AM (#24099291) Homepage Journal

      They don't get to play favorites with the telcos.

      And from TFA: ... you can't use your powers as a city to create an uneven playing field,"

      This is a nonsensical argument. Nearly everywhere, the municipalities, states, and all other levels of government always "play favorites" and create an "uneven playing field". They do this by creating and enforcing local telecom monopolies.

      Where I live, the phone line leading to my house is owned by Verizon, and it's illegal for any competitor to install a competing line. This is about as much an uneven playing field as you can imagine. The town has exactly one favorite phone company, and the others aren't allowed to install their wires in this neighborhood.

      Cable is similar, though our neighborhood is a bit unusual in that there are two companies that are legally permitted to install their cables. But a "duopoly" isn't all that much better than a monopoly. (And the "competition" between phone and cable companies does little to alleviate these mon/duopolies.)

      Also, here in the US, and in most other companies, the phone companies have received all sorts of subsidies from the national government. If I'd tried to start my own phone company, I'd have had no access to those subsidies. And even with regulations allowing my startup to use the phone company's (copper) wires, they can charge me so much that I can't price my services competitively with theirs.

      How do people get off arguing that municipalities shouldn't play favorites to create an uneven playing field, when for over a century, all levels of government have been doing exactly that to create and enforce the telecom monopolies that we see everywhere?

  • If a Telco wins their lawsuit, the Judge has to mandate a build-out plan for the Telco, with high penalties for failing to reach milestones.

    So if the Telcos really want to build it, they'll sue.
    More likely, I imagine they'd stay far far away from those areas.

    • judge says it's not a natural monopoly, and tells the telco's they have to negotiate right-of-way wherever they have lines (new or existing). Additionally, there is no public benefit to restricting municipalities from competing with the consent of their citizens, so the telcos can go suck on a rock.
  • The government? (Score:5, Insightful)

    by symbolset ( 646467 ) on Monday July 07, 2008 @08:14PM (#24092235) Journal

    The government? Providing necessary infrastructure companies can't or won't? How dare they!

    • Re:The government? (Score:5, Insightful)

      by QuantumG ( 50515 ) * <qg@biodome.org> on Monday July 07, 2008 @08:22PM (#24092323) Homepage Journal

      Yeah, cause its not like these municipalities are trying to say who can use the fiber that they want to build to connect their citizens to the Internet. Oh wait, yes they are. This would be like building a nice new highway, and getting Ford to pay part of the cost, and only allowing people with Fords to drive on it. [Slashdot car analogy at its finest].

      • Not all of them (Score:5, Informative)

        by symbolset ( 646467 ) on Monday July 07, 2008 @08:55PM (#24092655) Journal

        The power districts I know of that are doing this don't sell retail. They'll open their network to any shmuck with a decent router. I could be an ISP. If comcast and AOL want to play on a level field, they're welcome to. They don't. The thought terrifies them. Hence the lawyers.

        In Tacoma WA they have muni broadband, and they're more particular. OTOH their quality of service is stunning. You call, and get actual local people who know the area and the network and get someone out to you right away if you need it. Click Network is great stuff, even if it's only 10mbps over cable instead of 100mbps over fiber.

      • Re: (Score:2, Insightful)

        by Anonymous Coward

        Are you an idiot or just a shill?

        The telcos HAVEN'T BEEN PROVIDING SERVICE TO THESE TOWNS DESPITE REQUESTS TO DO SO. So the towns have done it themselves. They aren't saying the telcos can't run their own lines and services to the town, they're just going to do it themselves because the telcos have never shown any interest in serving them. The companies have denied themselves this business. And like any municipal service (power, water, etc.) the citizens pay for it and anyone who pays bills gets it. The mun

      • > getting Ford to pay part of the cost
        Exactly. Much of the infrastructure build out has been taxpayer subsidized.

        Now some taxpayers want to pay a second time to lay more fiber for themselves because the telcos won't, and the telcos call that unfair competition?

        That's like Ford complaining it's unfair that I build my own car. After I already paid them to build one for me.

  • hmmm (Score:3, Insightful)

    by ILuvRamen ( 1026668 ) on Monday July 07, 2008 @08:14PM (#24092237)
    yeah or maybe it just costs too much to run cabling and equipment out to rural areas...like more than they'd make selling internet connections so they don't do it. Consipiracy theorists tend to really leave logic behind. The whole suing thing is just because telecom companies know the cost per person will be so low, it's crazy. I mean a 100 megabit connections could cover a decent sized small town and that's relatively cheap when you divide it out per person. So then everyone's gonna want it and drop the traditional ISPs in favor of probably free municipal internet and their business will collapse.
    • That's the point (Score:5, Insightful)

      by symbolset ( 646467 ) on Monday July 07, 2008 @08:32PM (#24092433) Journal

      These areas have no current broadband business serving them and they aren't going to because the margins are higher providing 5mbps to city folk than dragging fiber out to farmer John. That's why rural areas to get broadband at all have to do it themselves.

      The thing is in places like sleepy Ephrata, WA they can sell 100mbps broadband for $50/mo through the power district and still make a profit - just not as big of a margin as the telcos are getting.

      There is no business there to destroy and there never will be. Comcast and Ma Bell have no intention of serving these folks ever. They just sue to keep other people from doing it to prop up the myth that bandwidth is evpensive. Yeah sure it's expensive if the guy dragging the fiber has to take every corner, valley and river by force from a defending battalion of lawyers.

      • by QuantumG ( 50515 ) *

        That's why rural areas to get broadband at all have to do it themselves.

        Seriously, do you actually think that these local governments are doing it themselves? They're not. They're borrowing money and paying a telco to do it for them. That's why we're talking about subsidization.

        Know what you're talking about before talking about it.

        • by NMerriam ( 15122 )

          Seriously, do you actually think that these local governments are doing it themselves? They're not. They're borrowing money and paying a telco to do it for them. That's why we're talking about subsidization.

          So hiring people with the expertise to do something is bad? I thought that was the key to efficiency.

          A magical Verizon Fairy doesn't go out and lay cables, they borrow money and then hire people with experience to do it for them.

        • So... What you're saying is... A telco refuses to build out broadband. The community raises the funds and builds out broadband using whatever subcontractor. That seems a reasonable course to take. Then the community should just take this essential infrastructure and just gift it to the telcos to exploit like their other monopoly victims? And pay the bonds back with what, exactly?

          I'm sure the phone company involved in this hypothetical case you're talking about billed all the traffic would bear and I'm

        • Can you be more specific? Are they just contracting the job out or paying a telco to build and operate lines? Who owns these lines? What business is it of other telcos, provided that the bidding process is open to all?
        • by afidel ( 530433 )
          Uh, wrong. I know in one local power district their field techs learned how to splice fiber and operate horizontal boring machines. They then laid all the fiber. They have their own networking people who know the network equipment. My bosses son is interning with them and is going to have at least his CCNA by the time he graduates high school next year. Some may outsource, but many will do it themselves.
      • by hitmark ( 640295 )

        and this profit margin keeps popping up in all kinds of markets.

        how high a profit margin should be the expected minimum for a business? i ask this as it seems lawmakers are willing to bend over backwards to keep those margins as high as possible...

    • by NMerriam ( 15122 )

      yeah or maybe it just costs too much to run cabling and equipment out to rural areas...like more than they'd make selling internet connections so they don't do it. Consipiracy theorists tend to really leave logic behind. The whole suing thing is just because telecom companies know the cost per person will be so low, it's crazy. I mean a 100 megabit connections could cover a decent sized small town and that's relatively cheap when you divide it out per person. So then everyone's gonna want it and drop the t

  • by WillAffleckUW ( 858324 ) on Monday July 07, 2008 @08:14PM (#24092245) Homepage Journal

    And is there any way we can post the plans for the wiring of their top execs offices and homes online so all the world can assist them in not having broadband?

    After all, it's for the public good - the USA is near the bottom for high speed Net access among first world nations ...

  • We're screwed (Score:4, Insightful)

    by clang_jangle ( 975789 ) * on Monday July 07, 2008 @08:15PM (#24092253) Journal
    The people didn't worry when the same thing happened with electricity, they didn't worry when it happened with telephone service. They didn't even worry when a "radio set" came to mean just a receiver. The wild and wooly "early days of the internet" will be over in just a few years, and few will really care. Relish these times we live in, pity those who come later...
    • Re: (Score:2, Interesting)

      by maxume ( 22995 )

      People have receive only radios because they have little desire to transmit. Oddly enough, most people who want a transmitter can just go buy one (they may have to fiddle about a little to legally use it).

      • Re:We're screwed (Score:5, Interesting)

        by clang_jangle ( 975789 ) * on Monday July 07, 2008 @08:55PM (#24092659) Journal
        Thanks, you have illustrated my point well. The day may well come when someone with no understanding of today's internet potential will say, "People have download only accounts (or accounts with tiny upload caps) because they have little desire to upload. Oddly enough, most people who want an uploading account can just go buy one (they may have to fiddle about a little to legally use it)."
        • by hitmark ( 640295 )

          that would be if the net was strictly broadcast, that is that every package my computer generates would hit every other computer on the network.

          and while that was going on, every other computer would have to wait for mine to shut up.

    • by Bandman ( 86149 )

      Are you kidding? I already miss the "old" internet...when the scourge of banner ads was barely a glimmer.

    • by NMerriam ( 15122 )

      The people didn't worry when the same thing happened with electricity, they didn't worry when it happened with telephone service. They didn't even worry when a "radio set" came to mean just a receiver.

      Commercial radio receivers always outsold transmitters. Other than building a crystal set in the basement to learn electronics, 99.9999% of people have never given a damn about transmitting.

      Everything else you said seems to disagree with your premise. I don't know of anyone who wishes phones were still rare

  • Bad Idea (Score:2, Insightful)

    by Bios_Hakr ( 68586 )

    Letting a local government run your Internet is a stupid-bad idea.

    You will see caps, filters, and all kinds of other crap. States like Arizona and Alabama have laws against sodomy. Alabama makes it illegal to own a sex toy. Let Alabama run the Internet and you'll find yourself in jail for watching MrHands.avi or WeLiveTogether.

    I understand that in some places, commercial access would remain available. Just like we have toll roads and bridges today. But a good portion of the people would be forced to us

    • Re:Bad Idea (Score:5, Insightful)

      by stinerman ( 812158 ) on Monday July 07, 2008 @08:58PM (#24092687)

      Letting a local government run your Internet is a stupid-bad idea.

      I agree.

      What isn't a stupid idea is letting a local government build networking infrastructure and then allowing access to anyone who wishes to provide services over the infrastructure.

    • by NMerriam ( 15122 )

      Letting a local government run your Internet is a stupid-bad idea.

      You will see caps, filters, and all kinds of other crap.

      And you're basing this on...? Legally speaking, if the government is providing the infrastructure, that's the surest way to guarantee it will be available to all and open to new uses, since they have a constitutional obligation to be content-neutral and not discriminate towards customers or services. Every home provider of internet service today is experimenting with -- and extolling t

    • Actually, in the US, it is the other way around. A private company can impose all sorts of stupid restrictions because it isn't constrained by the Constitution. A public utility has to abide by the Constitution, including the First Amendment, so it is more limited in the constraints it can impose.

      The examples that you provide are not representative. The Supreme Court has struck down laws against sodomy. If Arizona still has a sodomy law on its books, it is probably unconstitutional and unenforced. The Ar

    • by Bandman ( 86149 )

      As long as it's just an option and not mandated, I don't see a problem with it. It's when the government is the only source of the internet that I have a problem.

  • fsck the telcos (Score:5, Interesting)

    by blind biker ( 1066130 ) on Monday July 07, 2008 @08:28PM (#24092375) Journal

    I was on a course in Oulu, a smallish city slightly up north here in Finland, and was delighted that across the whole city there is unrestricted free WLAN access to their PanOulu network. It was a grand week - I was cycling around a lot (excellent city for cyclists, BTW) and once a bit tired, sit down and whip out my Eee PC and check my e-mails. When I returned to Helsinki, I felt like I was in a stupid backwater, and can't wait for the day Helsinki, too, introduces such a wonderful, free service. As for the telcos, well, they "don't have a God-given right" to profits. If I were one of the telcos, I'd try to actually be the one supporting such an initiative, and try to get what I can from the municipality, in terms of revenue.

    By the way, before the Helsinkiläinen lynch me: I love the city, but dudes, Oulu beats Helsinki in this particular instance, sorry.

  • Wi-Fi (Score:3, Insightful)

    by Darkness404 ( 1287218 ) on Monday July 07, 2008 @08:29PM (#24092399)
    Hmmm... Lets see... I can go to any city and immediately find around 10 wireless networks, about 3 of them will be unencrypted. Does this too pose a threat to the telecoms? When I can get 100% free Wi-Fi wherever I go that isn't a problem but this is?
  • who are they to say who gets to deliver broadband, i say sue the telecoms for abusing a monopoly power, was it not tax payer funds that helped the telecoms get the infrastructure and power they have now? this is what the telecoms get for neglecting those that want/need broadband because it was not profitable enough for their fat wallets...
  • New business model (Score:5, Insightful)

    by SilverBlade2k ( 1005695 ) on Monday July 07, 2008 @08:52PM (#24092617)
    Just like the RIAA and MPAA, the Telcos would rather sue, then to actually WORK for their money.
  • It's good that this issue is getting at least some sort of media attention. The anti-competitive environment for broadband Internet access is worse than the Microsoft monopoly ever was.

  • by postbigbang ( 761081 ) on Monday July 07, 2008 @09:20PM (#24092891)

    The telcos are running scared. They may no longer be able to bribe (oops, sorry, I meant lobby and give campaign contributions) to Congress and the White House, so it's time to grab all available opportunity to extend and destroy-- I mean deploy.

    The thought of public utility as a concept is just about over in many areas, and communications is a de facto utlity concept. So, if you can't woo them, like Verizon did to Ft Wayne Indiana, then simply sue and use the legal funds to drive municipalities broke.

    This so begs for a reexamination of competition in the communications markets, but it's unlikely to happen after the last two legislative fiascos (this after Judge Greene).

  • by Stanislav_J ( 947290 ) on Monday July 07, 2008 @09:27PM (#24092955)

    "This is similar to electrification a century ago when small towns and rural areas were left behind, so they formed their own authorities."

    And yet (as is painfully aware to me every month when I pay my power bill), the big power companies still survived and thrived. So will the telecoms.

    It amazes me how they say it isn't profitable to for them to serve a certain market, municipality, or region, then suddenly covet those same populations when someone else tries to serve them. If you want them, serve them. If you don't want to serve them, don't go crying to court when someone else does.

  • by f2x ( 1168695 ) * <flush2x.gmail@com> on Monday July 07, 2008 @09:34PM (#24093021) Homepage
    I hate seeing articles like this...
    Municipal corporations versus privately held corporations. It doesn't matter who wins, the taxpayer/consumer loses.

    I'm curious when the internet as we know it will essentially vanish. Usenet is already on the endangered species list, P2P is still a logistics nightmare if it goes prime time. Special interest groups want to censor every website. Barratry is rampant over intellectual property claims. Spam, spyware, trojans, worms, viruses, and other malwares are constantly trying to take over or kill the net. Governments want to tap into everybody's business while they're on the net. Telecoms want to repackage it with their own brand name all over it. The list of this degenerating garbage is endless, and yet people are still so desperate to get it!

    Why doesn't this stupid thing just implode already?! Once it does, Tim Berners-Lee (with nothing better to do) can come out and design a whole new concept of network computing that no single entity can possibly own or control.

    Meanwhile, Priva-corp vs Muni-corp can serve as yet another distraction from creating more practical advances in technology.
    • I hate seeing articles like this...

      Municipal corporations versus privately held corporations. It doesn't matter who wins, the taxpayer/consumer loses.

      I'm curious when the internet as we know it will essentially vanish. Usenet is already on the endangered species list, P2P is still a logistics nightmare if it goes prime time. Special interest groups want to censor every website. Barratry is rampant over intellectual property claims. Spam, spyware, trojans, worms, viruses, and other malwares are constantly trying to take over or kill the net. Governments want to tap into everybody's business while they're on the net. Telecoms want to repackage it with their own brand name all over it. The list of this degenerating garbage is endless, and yet people are still so desperate to get it!

      Why doesn't this stupid thing just implode already?! Once it does, Tim Berners-Lee (with nothing better to do) can come out and design a whole new concept of network computing that no single entity can possibly own or control.

      Meanwhile, Priva-corp vs Muni-corp can serve as yet another distraction from creating more practical advances in technology.

      and this fine image of corruption is different from the rest of human civilization, how?

  • by nurb432 ( 527695 ) on Monday July 07, 2008 @09:36PM (#24093035) Homepage Journal

    I'm curious to see why they think they can even sue? Since when cant a municipality create its own 'utility service' ?

  • by grandpa-geek ( 981017 ) on Tuesday July 08, 2008 @10:02AM (#24099537)

    The abundance concern of the telcos is a manifestation of Googin's Law, enunciated by Roxanne Googin, editor of a telecom-related newsletter. She stated that broadband (from an investor perspective) will either be a valuable monopoly or a worthless commodity.

    The marginal cost of additional bandwidth is near zero. According to basic economics, the price should equal the marginal cost. That is the "worthless commodity" part. However, if there is a single monopoly owner who can play games and charge whatever they want for whatever they decide to provide, that is the "valuable monopoly."

    Right now, we are in the valuable monopoly situation. Speeds are dumbed down (real broadband starts around 500 Mbps bidirectional, chips now in systems can support 1 Gbps). Cable TV providers use the rationale of limited bandwidth to choose the channels they provide and play games with tiers.

    This situation is causing the US to fall behind in worldwide competitiveness.

    We need to make bandwidth a worthless commodity. That may mean end-user ownership or municipal involvement. Our innovative birthright should not belong to the telcos.

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