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AT&T, Verizon Pour It On Thick In Praise Of New Broadband Plan
Lobbyists celebrate open access failure, insist they're 'empowering consumers'
by Karl Bode Wednesday 24-Mar-2010 tags: legal · competition · fcc · coverage · business · Op/Ed · telco · Politics · consumers
Today the incumbent phone and cable carriers hosted a roundtable forum, sponsored by The Georgetown Center for Business and Public Policy and the Technology Policy Institute. The "discussion," which featured a smattering of academics for legitimacy's sake and no consumer advocates, was a who's who of incumbent telecom lobbyists and hired think tankers. Most of the forum's participants spent their time praising the FCC's new broadband plan, which as we've discussed, is a good sign the plan fails to rattle the status quo or tackle competition.

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AT&T's chief lobbyist Jim Cicconi, who surely had a lion's share of input into the plan, repeatedly praised the FCC's "fact-driven" approach to policy, though only apparently if the facts in question were approved by AT&T.

At around 4:45 in this video, Cicconi can barely hold back a laugh at the failure of the open access push. That failure was, in part, thanks to the FCC's Blair Levin, who recently admitted the FCC (or at least Levin), lacked the courage to challenge carriers like AT&T in court.

Specifically, Cicconi claims Harvard researcher Yochai Benkler has "the faint whiff of sour grapes." Why? Because in an editorial last weekend, Benkler complained that the FCC essentially ignored his study. Said study contained data that argued that open access policies lead to competition and lower prices across global markets. In France, for instance, open access policies led to multiple Parisian fiber companies competing, which resulted in prices plummeting (as in, 100Mbps/50Mbps fiber service, VoIP and IPTV bundles for $40 a month). AT&T's clearly happy the FCC ignored this data, and hopes the trend continues.

Back in 2007, lobbyists like AT&T's Cicconi and Verizon's Tom Tauke didn't want a broadband plan. Now that there is one, the baby bells' focus will obviously be on shaping it to their liking as the FCC begins the gladiatorial effort of actual rule making. For the baby bells, this means less regulation of incumbents, more regulation for threats like Google, weakened FCC authority, and changing the USF so more money goes to AT&T and Verizon. Of course Cicconi and Tauke can't just say this is their goal, so they work hard to dress up simple revenue-driven lobbying as altruism and consumer advocacy.

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Ever since the FCC began crafting a broadband plan and thinking about network neutrality protections, Verizon's top lobbyist Tom Tauke has toned down his rhetoric from recent years, in the hopes of stalling new consumer protections. Tauke's now taken a strong fancy to saying things that sound quite consumer friendly (empowered consumers!), provided you completely ignore Verizon's long history of anti-competitive behavior, or their recent decision to literally hang up on millions of rural customers. Luckily for Verizon and Tauke, the press usually does.

Today saw Tauke pour it on particularly thick in his speech at a forum. In his turn at the microphone, a lobbyist for a company not known to be gentle when crushing competitors underfoot, magically became a huge fan of the broadband plan, consumer advocacy, and even arch-enemy Google:

Consumers must be fully empowered. Any new policy should put the users in charge. Consumers should have the ability to choose the devices and software they want, access whatever lawful content and applications they need, and obtain the products and services they desire on the move or at home. Empowered consumers are also well-informed consumers, who are able to make choices and decisions based on easily understood language and transparent business practices.

So, by empowered consumers, Tauke must be referring to consumers being allowed to use applications that Verizon hasn't intentionally crippled to prop up dying business models? And by "transparent business practices," Tauke must be referring to milking consumers for millions of dollars by using a computer glitch Verizon is fully aware of? And when Tauke talks about "finding common ground with Google," he must mean paying "consultants" to smear them? And by "informed consumers," Verizon must be referring to the consumers they fight in court to prevent getting access to broadband mapping data?

Tauke's call for overhaul of telecom policy is not new -- the laws do need to be changed to incorporate the litany of changes facing the sector, most of which involve the eventual waning power of Tauke's employer. However, given Verizon's history -- it's unlikely any reasonable, "informed" consumer wants Verizon dictating those changes. Meanwhile, there's a huge chasm between what a lobbyist says, and what the company they lobby for actually does. And again, luckily for AT&T and Verizon, nobody in the press is going to really bother to point that out as the baby bells "participate" in crafting the finer details of the broadband plan.

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spansyears

@verizon.net

2003-2010

15/2 in 2003.. price $49.99 no standalone allowed
15/5 $64.99 standalone
25/15(25?) $69.99 stanalone
50/20 $139.99

Not exactly the best in competitive increase in speeds and value for the price charged. The rest of the country is still screwed and don't even really see 15/1 on an "extreme tier" which is prices at or above $100 standalone.

ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
kudos:4

Re: 2003-2010

Where I live, 10/1 for $70 dollars or 5 /712 from AT&T for $35 or so. You have it good!

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: 2003-2010

Here it's:

$42 for 10/1 or $70 for 30/2.

Lower tiers are available too, namely 6m/512k for $35, 1m/128k for $22.

Those rates assume you also subscribe to cable TV. Without cable it's $15/mo more for 1m through 10m, and $10/mo more for 30m.

ptrowski
Got Helix?
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join:2005-03-14
Putnam, CT
kudos:4

Re: 2003-2010

Mine is standalone. I think it's $60 for 10/1.
jimbo2150

join:2004-05-10
Youngstown, OH
Here are choices here:

Cable (local, smaller cable co)
10/1.5 -- $60
5/512 --- $40
768/256 - $25
+$10 unbundled, I believe

Phone (AT&T)
6/712 -- $25 ($45 unbundled)
3/512 -- $15 ($35 unbundled)

Speeds/prices pretty much same (wavers +-$5) for last decade
--

- "Techie" Jim
JazzJRabbit

join:2003-09-27
Naperville, IL
I suppose my deal is slightly better in terms of "value", but not by much.

15/2 standalone $78, still ouch...
jimbo2150

join:2004-05-10
Youngstown, OH

Re: 2003-2010

said by JazzJRabbit:

I suppose my deal is slightly better in terms of "value", but not by much.

15/2 standalone $78, still ouch...
It is sad that it's 2010 and we still have areas where there is only 1 or 2 broadband provider(s) that typically only offer 10-20 mbps download (and very small upload), areas that are not served by broadband at all, areas where the fastest (wireless) broadband really does not meet the standards for broadband, and places (usually just large cities) that offer 50-100 mbps download (and relatively larger upload). Of course, each of these successive examples include smaller and smaller amounts of people respectively.
--

- "Techie" Jim

Bill Dollar

join:2009-02-20
New York, NY

DC is sick

Every panelist at that Georgetown forum either was from industry, or is directly supported by industry $$$, even the academics. That Levin would show up there, tells you all you need to know about him.

The big winners of the FCC plan are the 2 wireless giants, AT&T and Verizon. Since Mr. Levin has given them so many goodies in this turd of a term paper, I wonder where his next job will be?
Sammer

join:2005-12-22
Canonsburg, PA

1 edit

Why shouldn't they like it?

It's a terrible plan that doesn't solve much of anything but seeks to increase AT&T and Verizon's profits. The plan not only proposes stealing spectrum from free TV (endangering local newscasts) but also proposes adding an unnecessary new mobility fund (actually a way to get taxpayers to pay for the spectrum auctions) to the Universal Service Fund. The plan only gives lip service to competition but actually does nothing to increase it and may actually discourage competition. The new broadband plan while a nightmare for the American public is a dream come true for AT&T and Verizon and those who want to see little telecommunications progress. The lousy broadband plan of the "W" administration (essentially none) was actually better.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Why shouldn't they like it?

said by Sammer:

It's a terrible plan that doesn't solve much of anything but seeks to increase AT&T and Verizon's profits. The plan not only proposes stealing spectrum from free TV (endangering local newscasts)
What local newscasts? VNRs and "DC correspondent" junk from the network?

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Verizon's Tauke wants FCC neutered

and I agree. The FCC should stick to technical aspects of spectrum mgt and leave all the rest of their current power to the FTC and Justice Dept. The FCC should not be in the business of politics and off the cuff regulation.

»news.yahoo.com/s/pcworld/2010032···lecomact
The U.S. Congress should rewrite the Telecommunications Act to focus on the Internet and strip away the rulemaking authority of the U.S. Federal Communications Commission, a Verizon executive said Wednesday.

Rules aimed at specific industries such as broadcast television or telephone carriers are "out of step" with today's converged broadband and video ecosystem {best point he makes about FCC}, Tauke added. Instead of the traditional rulemaking process, an enforcement agency should have an "ongoing engagement" with technology experts to analyze industry trends, he said.

Instead of the current, wide-ranging rulemaking powers at the FCC, "an agency" designated by Congress should have the authority only to protect Internet consumers and to enforce antitrust rules {shoud be DOJ} in the telecom industry, Tauke said.

It doesn't make sense for rules to apply to one type of company in the Internet industry but not another, he said. Vendors are banding together to create new product lines, and the lines between traditional telecom carriers and application providers or computer makers are blurring, he said.

Tauke also called for an end to low-income subsidies under the FCC's Universal Service Fund {FCC has no business being a welfare agency}. Instead of the USF collecting money from telecom carriers and then distributing money to poor people who need help paying for phone service, Congress should give direct vouchers to low-income subscribers, he said.

--
NCAA® March Madness on Demand®

Karl Bode
News Guy
join:2000-03-02
kudos:30

Re: Verizon's Tauke wants FCC neutered

The FCC should stick to technical aspects of spectrum mgt and leave all the rest of their current power to the FTC and Justice Dept.
I say we give all rule-making authority right to Verizon.

Rob
In Deo speramus, God Bless the USA
Premium
join:2001-08-25
Kendall, FL
kudos:2

Re: Verizon's Tauke wants FCC neutered

said by Karl Bode:

The FCC should stick to technical aspects of spectrum mgt and leave all the rest of their current power to the FTC and Justice Dept.
I say we give all rule-making authority right to Verizon.
You mean we haven't already? I'm pretty sure the telco's and MSO's do all the rule-making. The FCC is their puppet.
--
CheckSite.us | YourIP.us | Reverseip.us
openbox9

join:2004-01-26
Alexandria, VA
kudos:2
That would streamline the rule making process and probably save the government a significant amount of money. Sounds good

Karl Bode
News Guy
join:2000-03-02
kudos:30

Re: Verizon's Tauke wants FCC neutered

I'm sure it does.
Bob61571

join:2008-08-08
Washington, IL

This is all to be expected when you're regulated,

because you have to dance with whoever's in power.
(I could use some cruder metaphors.)

This is also why VZ is cutting their FiOS expansion.
Why spend your own $, when the Feds will shower you with their $ anyway!

BF69
Premium
join:2004-07-28
Camden, TN

Re: This is all to be expected when you're regulated,

They're regulated? HA. WTF have you been smoking?

Kind of saying the foxes guarding the hen house are regulated.

Harddrive
Proud American and Infidel since 1968.
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join:2000-09-20
Phone Room
kudos:2
Reviews:
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Jim Cicconi... not a public speaker.

i tried to watch his little video on the AT&T blog web page. i can't get through the first 2 minutes. can he get through 2 sentences with out saying 'um'?
great lobbyist. poor speaking skills.
--
I've come here to chew bubblegum and kick ass and i'm all outta bubblegum.

ifarrell

join:2000-08-10
Willow Spring, NC

1 edit

Same here for four years

Still stuck at 7M/384K for $45/mth under Slime Pawner.
I can get 10/512K for another $10/mth. Wow, such a great deal.
No other choice either.
Welcome to the Cable Monopoly.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Suckers

I hope all the people here who were clamoring for a 5 Year Plan for broadband are happy now. In addition to raising rates, this is yet more corporate welfare.
--
"Net Neutrality" zealots - the people you can thank for your capped Internet service.

Alpine
Premium
join:2000-01-11
Atlanta, GA

Typical

A typically one-sided, biased post from Karl.

While it's true that the telecom companies want as little regulation as possible, their main point is to keep the lawmaking in Congress, where it belongs. It doesn't belong in political-hack, unelected, unaccountable panels like the FCC.

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