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story category SCOTUS Throws Out Baby Bell Antitrust Case
Evidence lacking to show illegal collaboration
(old news - 12:50PM Monday May 21 2007)
tags: dsl · legal · competition · business · clec
Tipped by viperlmw See Profile
The Supreme Court this morning threw out an antitrust lawsuit against AT&T, Verizon and Qwest. The suit accused the companies of illegally agreeing not to compete against one another in order to protect their interests while simultaneously driving CLECs from the market. The justices voted 7-2 in favor of the baby bells, stating the lawyers for the plaintiffs failed to provide evidence of collusion. Verizon applauds the deal, saying the high court has established that providers "will not be challenged under antitrust [laws] for making independent choices that benefit consumers."

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Forums » SCOTUS Throws Out Baby Bell Antitrust Case
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bigjimc

join:2003-04-21
Middleboro, MA

WOW 7-2

Who was a plaintiff attorney? Mickey Mouse?

or

Was it that cut and dry? (But not unanimous)
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ColorBASIC
8-bit Fun
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join:2006-12-29
Corona, CA

Re: WOW 7-2

Bartles & Jaymes.

GOLFnSUN
Enjoy the sun
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1 edit
said by bigjimc See Profile :

Who was a plaintiff attorney? Mickey Mouse?
or
Was it that cut and dry? (But not unanimous)
It was that cut and dry. The only justices dissenting were Ruth Bader Ginsburg and John Paul Stevens. These are the two leftist anti-corporate justices on the court who vote against corporate interests on every single vote.

Basically, the plaintiffs said that because the Baby Bells didn't go in to competitors neighborhoods and lay parallel wiring to each home that that was proof of collusion. The claim was ridiculous on its face. Doing that would never return a profit. No wonder the Bells came to that conclusion independently. And that is how the court decided.
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Re: WOW 7-2

said by GOLFnSUN See Profile :

Basically, the plaintiffs said that because the Baby Bells didn't go in to competitors neighborhoods and lay parallel wiring to each home that that was proof of collusion.
Lack of proof that a conspiracy exists is, in fact, PROOF that the conspiracy exists.

This is one of the first fundamental concepts that they teach on the first day of Conspiracy 101.


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A is A
nasadude

join:2001-10-05
Rockville, MD
·Comcast

said by GOLFnSUN See Profile :

... These are the two leftist anti-corporate justices on the court who vote against corporate interests on every single vote...
you mean the pro-consumer justices?

said by GOLFnSUN See Profile :

...Basically, the plaintiffs said that because the Baby Bells didn't go in to competitors neighborhoods and lay parallel wiring to each home that that was proof of collusion. The claim was ridiculous on its face. Doing that would never return a profit. No wonder the Bells came to that conclusion independently. And that is how the court decided.
Wow. So laying parallel wiring to each home "would never return a profit"? Is that why the ILECs want any competitors to do that and not have to share the existing lines? So the FCC pushing "facilities based competition" is really just a sham, because it "would never return a profit" for competitors?

You didn't think very hard before you wrote that did you? Because that one statement completely shows the fallacy of the current FCC policy of pushing facilities based competition and allowing the ILECs to get away with not sharing their lines.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Re: WOW 7-2

Actually, it shows the fallacy of the Telecommunications Act of 1996 which started this "competition" farce.

While the FCC often has its head up its ass, in this case Congress shoved it up there. You might also remember it as the first attempt by Congress to regulate "obscenity" on cable TV pay channels.

Anyone who has even a slight grasp of economics knows this would never work under any kind of "free market" arrangement. Either it's heavily subsidized or outright built by tax money.
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ieolus
Support The Clecs

join:2001-06-19
Duluth, GA

Re: WOW 7-2

Then they should just nationalize the last mile to each home and let any service company that wants to provide service. There, free market competition at its finest.
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RadioDoc
58ef2c0
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Re: WOW 7-2

Hardly. Why should someone who doesn't want to use it have to pay taxes to support that?
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bmn
? ? ?
Premium,ExMod 2003-06
join:2001-03-15
hiatus

Re: WOW 7-2

You collect fess from the network services providers... Subscriber funded.
--
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RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Re: WOW 7-2

Which does that address, the chicken or the egg? The infrastructure has to be there before there are subscribers.

I don't disagree something needs to be done, but nationalizing utilities rarely works.
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SRFireside

join:2001-01-19
Houston, TX

Re: WOW 7-2

Maybe a form of regulation that states whoever owns the line only provisions the line. They can't offer content. That way all the line owner can do (and hope for) is to get as many competing companies to lease their lines as possible.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Re: WOW 7-2

As long as it applies to everyone, including cable and wireless, I see nothing wrong with that.

Of course, we both know the probability of that happening is -1.
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KrK
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Re: WOW 7-2

said by RadioDoc See Profile :

As long as it applies to everyone, including cable and wireless, I see nothing wrong with that.

Of course, we both know the probability of that happening is -1.
Heh. More like - 1 Billion
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
bmn
? ? ?
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hiatus

said by RadioDoc See Profile :

Which does that address, the chicken or the egg? The infrastructure has to be there before there are subscribers.
A forced divestiture of the existing infrastructure... Sounds nasty, but really, its the only way to make the telecom arena truly competitive. It is nearly impossible to build out an entirely new work to compete against the existing giants. And of course, it is asinine to spend resources when the existing network could just be shared instead of having fifty different networks dangling from telephone poles.

I don't disagree something needs to be done, but nationalizing utilities rarely works.
The only other option is a not-for-profit operating corporation.
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Prove it...
RadioDoc
58ef2c0
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·AT&T Midwest

Re: WOW 7-2

If we are really serious about it we'd just give tax credits to those who own private networks, and shift it all over to some benevolent public-controlled overseer? Really?

Where has that ever really worked for anything? Maybe if you have central control and no private ownership there might be a chance you'd get close to the goal, but then what? Where does the money come from? Do you lease it all back to the original companies? How do you keep the government from fucking it up like they do everything else they control? We'll end up with another Amtrak.

The horse has been out of the barn so long it's died and its corpse been eaten by jackals. The time to do this was in 1981...I'm afraid there is no going back now.
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Skippy25

join:2000-09-13
Hazelwood, MO

Re: WOW 7-2

At the drop of a hat our country can spend hundreds of billions of dollars on a war in a country that has no real benefit to us and yet you would object to them using that kind of money in building a nationwide network?

I say build the damn network with our tax money as they have it to spend already and then lease the lines.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Re: WOW 7-2

Try again, that made no sense. The tired "they can spend $$$ on war so why can't they spend $$$ on ______" is trite and intellectually lazy.

We already have a nationwide network. Several, in fact.

You say you're 35 years old. Do you pay taxes? Are you ready to pay enough extra to foot the bill for your shiny new network that has little actual benefit to anyone?
--
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Skippy25

join:2000-09-13
Hazelwood, MO


1 edit

Re: WOW 7-2

Coming from a probusiness/monopoly person like you of course you call it lazy.

Again my point stands as we all pay enough taxes already that can easily be reallocated to this project just like they do for all their other special little pet projects.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Re: WOW 7-2

A probusiness/monopoly person?

You base that on what, more lazy thinking?
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wifi4milez
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said by RadioDoc See Profile :

If we are really serious about it we'd just give tax credits to those who own private networks, and shift it all over to some benevolent public-controlled overseer? Really?

Where has that ever really worked for anything? Maybe if you have central control and no private ownership there might be a chance you'd get close to the goal, but then what? Where does the money come from? Do you lease it all back to the original companies? How do you keep the government from fucking it up like they do everything else they control? We'll end up with another Amtrak.

The horse has been out of the barn so long it's died and its corpse been eaten by jackals. The time to do this was in 1981...I'm afraid there is no going back now.
You are 100% correct. The reality is that wired networks (at least copper) are going to to be slowly decommissioned over the next 50 to 100 years until they are left only in obscure locations. As much as everyone hates WIMAX, it or its successors (or variants, etc), will/do offer the chance for someone to build a truly new network to reach subscribers. Whether that person/company is willing to spend billions and then leave it open to competitors remains to be seen, but dont count on that either.
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wentlanc
You Can't Fix Dumb..

join:2003-07-30
Maineville, OH

For the same reason that you pay taxes to fix a neighbors road that you probably never drive on.

People ni this country used to do things to help each other. now they only do things to help make money. It's a horrible shame really.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest


1 edit

Re: WOW 7-2

There is a big difference between paying to maintain a public road (or school or police department or fire department or...) and using tax dollars to take a private utility. Especially when the the motives of the government agency doing the taking are unclear, along with it having an absolutely horrid operating record. We're talking about nationalization of existing infrastructure, not some sleepy burg putting up their own fiber to play network operator on.

But more to your example, why should I pay tax money to take my neighbor's private road so it can be turned into a public road, just because someone else wants to use it? How about negotiating with my neighbor for an access easement? Maybe a lease? Maybe something not quite so oppressive?
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wifi4milez
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Re: WOW 7-2

said by RadioDoc See Profile :

How about negotiating with my neighbor for an access easement? Maybe a lease? Maybe something not quite so oppressive?
For the last time, please STOP being fair and reasonable! What kind of a forum do you think this is??
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RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Re: WOW 7-2

Sorry. I'll go watch O'Reilly and listen to Limbaugh to learn how to do it right...


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bratwiz

@verizon.net
For the same reason they make you pay local taxes in support of roads and schools you'll likely never use.

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said by RadioDoc See Profile :

Actually, it shows the fallacy of the Telecommunications Act of 1996 which started this "competition" farce.

While the FCC often has its head up its ass, in this case Congress shoved it up there. You might also remember it as the first attempt by Congress to regulate "obscenity" on cable TV pay channels.

Anyone who has even a slight grasp of economics knows this would never work under any kind of "free market" arrangement. Either it's heavily subsidized or outright built by tax money.
Funny, Playboy took the FCC to court over that "obscenity" law and won. Since then, the Congress doesn't touch "erotic" entertainment. It shouldn't have in the first place ala the 1st Ammendment.

The Bells competing is as stupid as those CLECs offering phone service.
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11
·AT&T Midwest

Re: WOW 7-2

said by supergirl See Profile :

Funny, Playboy took the FCC to court over that "obscenity" law and won. Since then, the Congress doesn't touch "erotic" entertainment. It shouldn't have in the first place ala the 1st Ammendment.

The Bells competing is as stupid as those CLECs offering phone service.
Yep. Stupid is as stupid does. There's a lot of stupid inside the Beltway.
--
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FIOS

join:2007-03-10
Netcong, NJ

said by nasadude See Profile :



You didn't think very hard before you wrote that did you? Because that one statement completely shows the fallacy of the current FCC policy of pushing facilities based competition and allowing the ILECs to get away with not sharing their lines.
When are you cable people going to open up your coax to CLEC. You get to leech off the poles. You people never placed one pole.

T1 Rocky

join:2002-11-15
Dallas, TX
·Time Warner Cable

said by GOLFnSUN See Profile :

said by bigjimc See Profile :

Basically, the plaintiffs said that because the Baby Bells didn't go in to competitors neighborhoods and lay parallel wiring to each home that that was proof of collusion. The claim was ridiculous on its face. Doing that would never return a profit. No wonder the Bells came to that conclusion independently. And that is how the court decided.
I have to agree with you. I can't believe it but I have to agree. Why would the Bells build into homes that already lines?

But what stupifies me is that of all the unethical monopolisitic things that the telcos have done over the last 10 years, this is the case that made it to the Supreme Court? Here's the cases I can think of bringing them to court for:
1 Creating fake "astro turf campaigns" to influence public opinion.
2 Not building out the fiber networks they were paid to build.
3 Not opening their networks to competition as dictated in the telecom Act of 96.
4 Restoring a monopoly.
5 Failing to honor concessions such as lowering dsl rates in Texas to retail ISP's because their lawyers didn't approve of the language in the contract, when they were the ones who authored the contract.
6 Failing to honor the concession of the SBC/AT&T merger to offer naked dsl.
7 Failing to honor the concessions of the AT&T/Bellsouth merger to offer naked dsl (2 freekin yrs later!)
8 Underminding local municipalities who try and build out their own netwoks after the telcos failed to build what they already agreed (and were paid) to build.
9 Wiping out the ISP and CLEC indistries by suffocating competition (wholesale dsl is more expensive than retail dsl.)
10 Forcing bundled solutions on customers.
11 Excessive lobbying and inciting corruption (although this is not illegal in itself, when your passing out $1.39 BILLION I'd be willing to bet there's more than enough illegal activity.)»www.publicintegrity.org/lobby/to···ompanies
12 False advertising ($15 dsl does not exist without bundling and T1 rates have another 30% mark up over what your quoted when you order the service.)

Of all of those legitimate arguments, the one that makes it to the Supreme Court is that they were scratching each other's backs? Hell, if they would have given it another 2 years then AT&T, Verizon and Qwest might be merged by then and then the Supreme Court wouldn't have had to waste time on this. Then they can get back to important decisions like should Maurice Clarett be allowed to enter the NFL early and who get's Anna Nicole's ex husband's money.
Zoder

join:2002-04-16
Miami, FL

said by GOLFnSUN See Profile :

Basically, the plaintiffs said that because the Baby Bells didn't go in to competitors neighborhoods and lay parallel wiring to each home that that was proof of collusion. The claim was ridiculous on its face. Doing that would never return a profit. No wonder the Bells came to that conclusion independently. And that is how the court decided.
I seem to recall that the mergers which created Verizon and SBC pre-MCI/AT&T required the new companies to compete out-of-market. SBC sold local service as a CLEC in Miami for awhile because of this. But the FCC never really pushed the issue, so the companies never made a real effort to compete aggressively.

cableties
Premium
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But..

but your honor, look at the phone records!!!

(get it?)

major marco
Res Firma Mitescere Nescit
Premium
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Stepford, CA
clubs:

This should come as *no* surprise whatSOever

The decision by the big business-friendly Supremes, was, as usual, bullshit. The whole reason why there was an antitrust case in the first place was because the Death Star (AT&T) is slowly reassembling itself. In short, if there is to be any kind of competition, then whoever owns the local lines has to allow other companies to use the same lines, even if they're competing for local service. But the aftermath of the Telecom Act produced a pattern of company consolidation, rather than an influx of new businesses. In 2000, Bell Atlantic and GTE merged to form Verizon. Five years later, Verizon bought MCI. That same year, SBC acquired AT&T.

The class action lawsuit filed against big telcos like Qwest Communications, Verizon and SBC, claims the companies conspired to exclude competitors and not to compete against one another in their respective geographic markets for local telephone and high speed Internet services.

The Supremes simply sided with their corporate buddies, but then again, this is the same court that decided in Kelo that it's A-OK to eminent domain its way to possessing your home/land if a big moneybucks developing company wants the land.
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See 36 replies to this post
waiting4fios

join:2005-04-08
Howell, NJ

If the ruling had gone the other way?

Would the cable companies then have been targeted for a similar lawsuit, as they fall in the same boat as the ILECs on this one. What about utility companies?
campinfool

join:2006-02-24
Austin, TX

Re: If the ruling had gone the other way?

No because cable is good, telco is evil.

Sincerely,
Half of this board.

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:

Re: If the ruling had gone the other way?

Drat. Not in either half again. This fence hurts my butt.
I think both lean more toward evil than good. Rock on any-competing-third-party.
KM
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FIOS

join:2007-03-10
Netcong, NJ

DUH.

Verizon can't run FiOS in its own area let alone run it in another's. The network is a natural monopoly. They knew that 100 years ago, when did the country become stupid? Oh, I remember, when MCI sold it shovels full of B.S. Leech are still shoveling it and people still swallow it.

KrK
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Anti-Trust / Collusion

So basically as long as you don't compete but don't leave clear evidence of collusion you can get away with it.

IE It's not just the provision of anti-competitiveness but you have to be proven to be collaborating with each other.

As long as you don't provide evidence of collusion you can get around the intent of the law without being penalized.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)

KrK
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Simple Question:

A simple question: If they ARE NOT GUILTY, then....

How come I can't get Verizon POTS? Or Verizon DSL? Or Qwest POTS? Because I live in the geographical empire area that at&t owns, and they won't compete with each other. Often, in fact they treat consumers like they own them, not like they are customers.

The truth is clear. The Legal arguments aren't. It sometimes feels like the legal system is a way to seperate the truth and Justice from each other to make sure the truth is not revealed and Justice is not served.

--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)
crudis01

join:2007-05-23
Baltimore, MD

Regs

Well, if you look at the sucky phone and internet the US has, you can trace it back to our government controls. Internet speed is a gazillion times faster in Europe and Asia. Ask your self, how much better has your power bill gotten since dereuglation. Until Satellite, and recently Verizon FiOS, how competetive was your cable choice. You can have a regulated entity, but not one in a competetive environ. The US gov't trys to allow both to exist, can't happen. If you spent a ton of time working to buy the worlds greatest lawnmower, busting oyur hump using oyur dollars. Would you want to be required to allow oyur neighbor to use it to improve the look of the community, hells no. The gov't sets phone and internet as luxuries, so they either need to totally remove controls or totally control it end to end. This in the middle cr@p and lets help out the little guy by ensuring you lose money on oyur own product is cr@p.
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