Internet Providers And Their Lobbyists Losing Momentum Vs. City Wi-Fi Plans Brian Deagon
http://news.yahoo.com/s/ibd/20060731/bs_ibd_ibd/2006731tech As phone and cable firms battle each other, they're tackling a new class of competitor -- city administrators. Municipal Wi-Fi systems and cities treating Internet access as a utility could have dire consequences for the cable and phone companies, which have spent billions to provide these services. (See related story on this page.) In response, phone and cable firms, the incumbent operators, have lobbied state governments to restrict the kind of wireless service municipalities can offer. One argument is that the private sector shouldn't be forced to compete with the public sector for a service that receives taxpayer support. In 2005, 11 states agreed with the phone and cable firms, and passed laws that made it tougher for cities to float broadband initiatives. Lawmakers aimed to prevent serious competition and stop the nascent muni Wi-Fi movement. The phone and cable firms incumbents also sued to stop city network rollouts. Signs now suggest, however, that municipal broadband networks are here to stay. Rather than trying to squash them, phone and cable firms are seeking better ways to compete. Verizon Communications (NYSE:VZ - News) is one of the companies that lobbied hard against municipal broadband efforts last year. Here's what it has to say now: "The short version is that we think there are plenty of examples of this sort of thing failing badly, but if cities want to go into this and taxpayers are willing to pick up the tab, so be it," said Verizon spokesman Eric Rabe. "Verizon doesn't oppose these sorts of networks, and indeed there are a few cases where we've been a supplier. We're ready to compete. We're building a wireless broadband network that blows Wi-Fi away." To be sure, cities have to hire tech companies to set up Wi-Fi networks, contracts that could add up to billions of dollars in a few years. Meanwhile, cable and phone companies are pressing a strategy called the triple play. They offer consumers voice, Internet and TV services, with discounts for people taking all three. Cities can't match such offers. Simultaneously, cable and phone companies have scaled back lobbying aimed at beating back municipal broadband. "In 2005, there was a strong wind in state legislatures to restrict the municipalities, but we have not seen anything like that this year," said John Logan, a telecom attorney who worked for the Federal Communications Commission for most of the 1990s. No such state, or federal, laws have been enacted this year. A few have been proposed, but were defeated. The general mood in Congress is to let cities do what they want, Logan says. Bills being crafted in Congress would overturn restrictions states put on muni Wi-Fi, he says. "People are saying this is a good idea," Logan said. "The technology is so powerful that it's winning the day." And it's not as if industry opposes government intervention in other private-sector areas, others note. "The last time I checked, I didn't see them screaming about tax dollars being used to build football stadiums," said Jonathan Baltuch, president of the consulting firm MRI. Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
