Cable co. blames “misinformation” for failure of municipal Internet ban
Kansas cable lobby will try again, now facing opposition from Google.
by Jon Brodkin
Ars Technica
Feb 4 2014, 2:35pm CST
http://arstechnica.com/tech-policy/2014/02/cable-co-blames-misinformation-for-failure-of-municipal-internet-ban/
The legislation in Kansas that would have made it nearly impossible for
cities and towns in that state to offer broadband service to residents
was originally scheduled for debate in the Senate today.
That hearing ended up being canceled after public outcry forced the
bill's author, the Kansas Cable Telecommunications Association (KCTA),
to rethink its tactics.
But that doesn't mean the bill is going away forever. Cox, a member of
the cable lobby group, blamed the early struggle on "misinformation,"
but said there will be "continued discussion."
"Cox Communications was prepared to participate in Kansas legislative
hearings regarding Government Owned Networks," the company said in a
statement sent to Ars. "With approximately 22 other states having some
type of restriction on the use of taxpayer dollars for these kinds of
facilities, we thought it a relevant topic worthy of our involvement
given our significant investment in the communities we serve and our
public-private partnerships. There was enough misinformation regarding
the legislation that made it appropriate for the committee to defer
action at this time. We look forward to a continued discussion with all
parties on this issue."
The KCTA said yesterday that it requested the cancellation of today's
Senate Commerce Committee hearing to "allow time to meet with the
interested parties about the legislation." (As it turned out, a
snowstorm canceled all of today's legislative sessions.)
The bill would have forbidden municipalities from providing "video,
telecommunications, or broadband service" except in areas where 9 out of
10 residents have no service at all. The bill also placed restrictions
on government partnerships with broadband companies.
*Google says private sector can't solve broadband problem alone*
This drew opposition from within Kansas and from a variety of tech
companies and consortiums who sent a letter to state lawmakers. The
letter was signed by Google, which chose Kansas City as the first site
for its Google Fiber service. Signees also included Alcatel-Lucent, the
American Public Power Association, the Atlantic Engineering Group,
Calix, CTC Technology & Energy, the Fiber to the Home Council, the
National Association of Telecommunications Officers and Advisors,
OnTrac, the Telecommunications Industry Association, and the Utilities
Telecom Council.
"We, the private-sector companies and trade associations listed below,
urge you to oppose SB 304 because this bill will harm both the public
and private sectors, stifle economic growth, prevent the creation or
retention of thousands of jobs, hamper work force development, and
diminish the quality of life in Kansas," the letter said. "The private
sector alone cannot enable the United States to take full advantage of
the opportunities that advanced communications networks can create in
virtually every area of life. … SB 304 would prevent municipalities from
working with private broadband providers, or developing themselves, if
necessary, the advanced broadband infrastructure that will stimulate
local businesses development, foster work force retraining, and boost
employment in economically underachieving areas."
The KCTA denied that its bill is just an attempt to protect cable
companies from competitors. “Let me be clear that this legislation was
not introduced to prevent other private telecommunications providers
from building or expanding their services in Kansas communities," KCTA
President John Federico said in yesterday's announcement. "This bill was
intended to provide safeguards to all telecommunication providers
against government-subsidized competition."
Last week, Federico told Ars that the cable lobby intends to change how
the bill defines "unserved areas" to make it a little less restrictive.
But the lobby's belief that it shouldn't have to face competition from
government-run networks remains as strong as ever.
“Taxpayer dollars are a scarce resource, and legitimate questions about
municipal projects that compete with private providers should be
addressed in communities where private Internet Service Providers have
already invested risk capital to bring high-speed broadband, and other
telecommunication services, to Kansas consumers," Federico also said
this week.
The lobby will probably have at least some support in the legislature.
Two Republican Kansas legislators are part of the leadership of the
American Legislative Exchange Council, which says that taxpayer-funded
broadband networks "could erode consumer choice by making markets less
attractive to competition because of the government’s expanded role as a
service provider."
The council's board of directors includes Sen. Susan Wagle, vice chair
of the Kansas Senate's Commerce Committee, and Ray Merrick, speaker of
the state House of Representatives.
--
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Associate Professor Fax (713) 743-3927
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University of Houston
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