Ever since coming across
this Nation article that discusses the Bell Companies plans to start extorting content providers (from Google to DailyKos,) for use of "their" networks, it's become a notion I haven't been able to shake.
Senior phone executives have publicly discussed plans to begin imposing a new scheme for the delivery of Internet content, especially from major Internet content companies. As Ed Whitacre, chairman and CEO of AT&T, told Business Week in November, "Why should they be allowed to use my pipes? The Internet can't be free in that sense, because we and the cable companies have made an investment, and for a Google or Yahoo! or Vonage or anybody to expect to use these pipes [for] free is nuts!"
If it seems like the telcos have already received adequate compensation for any infrastructure changes made, it's because they have. Tax incentives, deregulation, and approved mergers were all meant to offset the costs being undertaken by the communications giants. I came across this report,
The $200 Billion Dollar Broadband Scandal. It seems someone has been paying attention:
During congressional testimony over a la carte cable services, it was mentioned that even the public's much-sought-after a la carte cable service was repeatedly quashed by congress for the cable companies during the 90s because 'packaging' revenue benefits would help support infrastructure upgrade plans that were made. Consumer groups argued that the infrastructure is now solidly intact, and services like a la carte should begin to be offered to the public. Yea right.
I admit I haven't purchased the e-book, but the main page of the site confirms all my fears immediately. Not only have we already paid for infrastructure upgrades, we haven't even received what the FCC, the congress, and the American people were promised during the 90s.
From the introduction:
We will attempt to show how America entrusted the phone companies with our fiber optic Digital Future and we were taken to the cleaners. It not only cost you and everyone you know a significant sum of money, but it has also harmed our entire economy. It is the reason America is not first in broadband in the world but 12th or 16th, depending on which international agency's data you believe.
We estimate that the failed fiber optic deployments have cost America over $206 billion in higher phone rates, tax breaks and other financial perks to the phone companies, and it has cost the American economy an estimated $500 billion annually in loss of new growth -- so far a total of about $5 trillion.
...
What was promised? By 2000, according to the Bell companies' annual reports, press releases and state filings, about 50 million households should have been rewired. California's Pacific Telesis (Pac Bell) promised to have 5.5 million households wired with fiber optic services, Ameritech; which covered 5 states including Illinois, Indiana and Michigan, Ohio and Wisconsin) promised 6 million homes by 2000, Bell Atlantic claimed 8.75 million homes, and NYNEX said 1.5-2 million by 1996. (Ameritech, Pac Bell, Bell Atlantic and NYNEX were four of the original Bell companies.)
The rewiring he's talking about here isn't DSL, or internal fiber-optic upgrades. What was promised was fiber-optic line direct to your house for your personal use, paid at rates similar to what you're paying now, if not cheaper.
Why then today, after reneging on a $200 billion dollar promise, do the telco's feel they now 'own' the weak infrastructure they've barely managed to provide us with? This report estimates the Bell's collectively spent about $1 billion dollar setting up fake industry groups and hiring lobbyists to push this forward. In the end, they pocketed nearly every penny, all while achieving deregulation in a majority of states, and being approved for merger after merger.
This is truly an outrage, the public has been duped, and while a pro-deregulation FCC and a communications-illterate (if not bought and paid for) congress is now about to face a new round of lobbying from AT&T, Verizon, and Comcast to hand them the keys to the internet. Promises will be made, but its clear no one will be bothered with enforcing them. We need to make this a higher priority agenda item not only stop the current coup, but we all need to take a look at the bullshit they've already sold us and start collecting on promises made.
Another article about the current rip-off being undertaken.