Upcoming UTOPIA Legislation

As part of the last Government Competition and Privatization Subcommittee, proposed legislation regarding UTOPIA has been handed out. Needless to say, it's a Qwest dream come true designed to unduly restrict UTOPIA from expanding beyond the current membership. Since it's not available online yet, I'll transcribe it with some of my own thoughts. These are all amendments to the Municipal Cable Television and Public Telecommunications Services Act.

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Liveblogging the Government Competition and Privatization Subcommittee: October 25, 2007

Another meeting, another liveblogging. It looks like this meeting will likely be starting late; Rep. Frank appears to be the only one here so far. Keep obsessively hitting those refresh buttons, folks.

1:46PM The meeting is over. I'll have a summary up later today.

1:45PM The next meeting is tentatively set for Wednesday November 7 at 9AM. They're likely to be discussing the potential legislation based on these tentative new laws, so UTOPIA supporters need to show up in force!

1:41PM The RUS money was about $66.2M for UTOPIA.

1:39PM Zing! Yep, Qwest gets a lot of USF money. $85M would make a big difference to UTOPIA if they could participate.

1:37PM I don't get it. The UTOPIA reps have to repeat themselves every single meeting, mainly at the insistence of Sen. Stephenson. I don't mean to be rude, but Senator, it might be time to do some private reading on the topic since it seems their answers and explanations aren't sticking.

1:33PM It seems like Sen. Stephenson and David Shaw are kind of talking past each other. Sen. Stephenson wants to know what the implications are of a private entity choosing to join UTOPIA and Mr. Shaw is trying to deflect the larger implication that UTOPIA would be "cherry picking" service areas.

1:30PM And… we're back to the whole "green field" discussion. Sen. Stephenson, haven't we beaten this dead horse enough?

1:26PM The committee has called UTOPIA representatives Roger Tew and David Shaw up to answer some more questions on how the current arrangement works. As I read more of this document and its proposals, I see more and more how it's a solution in search of a problem. UTOPIA seems to agree.

1:21PM This is really bad. Not only would the prospective member city have to hold a city-wide vote to join, each existing member city would have to do the same for each applying member! This would be a crazy expensive proposition that would practically kill off any new members. This reeks of Qwest and its anti-UTOPIA ways.

1:17PM The anti-UTOPIA legislation is being planned, but just isn't drafted yet. Proposed restrictions include banning non-pledging members, prohibiting new membership until the existing buildout is complete in pledging cities and require voters in a city to approve membership. These are some seriously restrictive proposals and you can be I'll be fighting against them!

1:14PM We're now moving on to discussing UTOPIA.

1:05PM This won't be very interesting. The discussion is about some technical amendments for waste disposal companies. Snore.

1:02PM The meeting is back in session.

12:04PM The committee is breaking for lunch. They will resume at 1PM.

12:03PM I provided some comments to make sure that UTOPIA cities don't end up with a bunch of extra costs due to the financial reporting requirements. Seems like they could end up being safe.

11:59AM Okay, fair enough. The reporting could keep cities honest by preventing them from doing cross-subsidizing like the incumbent telco and cableco carriers have done.

11:57AM The UAC is concerned that this legislation can be used in a retaliatory way against municipalities operating services the state doesn't want them to operate. A valid concern given the Real Salt Lake funding and the land dispute in North Salt Lake disputes that ended up being resolved by the legislature.

11:47AM Murray City is being cited as a model for proper accounting between core functions and ancillary functions. The ULCT's position is that compelling cities as to the manner they use to balance the books will likely jack up costs and provide few (if any) advantages over the current city practices.

11:36AM Oh my. If there's any person or business within 30 miles providing a similar service, a municipality would have to comply with these accounting rules. That's a very low threshold and could apply to all but the most remote of cities. That's pretty onerous. Sen. Goodfellow raises the point that this could lead to abusive monopolies.

11:34AM This is a new set of requirements that cities must create distinct budgets for any activity that competes (or could compete) with private enterprise. Penalties would include withholding of state funding. Since pledging UTOPIA cities have already been setting aside funds to satisfy the bond, I wonder if that would already comply. The real question is what impact this could have on non-pledging cities that didn't plan to be on the hook for any monies.

11:30AM We've now moved on to the "separate accounting" requirements for municipalities.

11:21AM Sen. Stephenson, that's kind of a technicality. Yes, municipalities exist more-or-less at the pleasure of the state, but that doesn't make top-down solutions the right thing to do. I've gotten the feeling that the problems with public/private competition are greatly overstated as there appear to be relatively few concrete examples of this being an issue. Most telling is that there haven't been a lot of business owners here to describe how they've been harmed to the point where this is necessary.

11:12AM Just noticed that the rep from Qwest that was at the Woods Cross meeting is here as well. If you aren't listening along, I don't think you're missing much if you're not listening along. A lot of words are being passed around, but not much new is being said.

11:01AM YES! We don't need this over-reaching legislation! It definitely is "using a sledgehammer to address a thumbtack."

10:59AM The current policy board has, to at least one member's recollection, never had someone act contrary to its recommendations. Given this, there's not really a need to create an official enforcement arm to carry out their recommendations.

10:53AM Sen. Goodfellow asked what too many of us in Utah have asked: how can the legislature complain about No Child Left Behind and then exercise top-down authority on cities? Mr. Van Tassel from the Utah Taxpayers Association was put on the spot with that one, but he seems to think that we're in a situation where a top-down approach is called for. It should be no surprise that I totally disagree with him.

10:45AM The discussion has been a back and forth on the rights of municipalities and the rights of the state. I get the feeling this is going to be quit the philosophical showdown during the next legislative session. Keep your eyes on this fight, folks.

10:35AM There's a distinct possibility that due to the Municipal Cable Television and Public Telecommunications Services Act, entities like iProvo and UTOPIA could be construed by the courts as exempt from these provisions since those functions are expressly granted by the legislature.

10:24AM It sounds suspiciously like this proposed commission could be used abusively to harass cities. While I can understand the need to keep government competition with the private sector to a minimum, this is seeming like another case where the state is butting in where it's not invited. The real question is if this system will be used by Qwest and Comcast to file various complaints against UTOPIA and member cities.

10:12AM Uh-oh. Counties aren't much going to care for it either. Specifically, the deck of council/commission membership seems to be stacked in favor of unelected officials making up the rules.

10:10AM I think the last rep was from ULCT. The Utah Association of Counties now has a rep on the stand.

10:08AM The cities might be prepared to fight if this proposed legislation if it is far too over-reaching. Specifically, the "Ripper Clause" of the Constitution prohibits state-created entities from interfering in municipal functions. Sounds like a potential Constitutional roadblock, but since when has that stopped the legislature?

10:04AM And here comes the friction. A representative of the cities (didn't catch the name) has the feeling that cities are not going to be happy about having a state-mandated fee structure and being told how they can use their own buildings.

9:58AM Sen. Goodfellow made the good point that simply raising the issue of private competition is usually enough to get cities to tread lightly.

9:49AM This is getting a bit on the complicated side. There's going to be both a council and a commission; the former will be responsible for defining what will be within their purview and the commission will be responsible for creating and enforcing directives per the advice of the council. This sounds like some pricey and over-reaching regulation that could impede offering municipal services and smells a bit like a unfunded mandate.

9:46AM It sounds like this "upgrade" from policy board to commission is going to extend the authority from just state activities to county and municipal activities. I'm also gathering that there's some level of vagueness regarding what kinds of activities it will be reviewing. There will be a "white list" of allowed activities (probably stuff like police and fire), though the contents of said list aren't very specific.

9:38AM They're now moving on to talking about the proposed legislation. None of this should directly affect UTOPIA, though you never know what will weasel its way in between now and January.

9:36AM The argument right now seems to be that the proposed legislation would be redundant in some cases. After all, you aren't going to bond or enter into a contract without some detailed analysis. It seems like yet another top-down solution from the state.

9:33AM Sounds like the proposed economic impact studies are going to be a bit too onerous for rural towns where a private provider may not be available. In other words, why do a study to assess the affect on the services that aren't being provided? Good question.

9:30AM Sen. Jenkins is now speaking on economic impact studies.

9:29AM A new agenda item was added concerning waste disposal companies. Thank goodness we don't have any UTOPIA-related surprises… yet.

9:27AM Only about a half hour late. Not too bad. Looks like we have Reps. Frank, Cosgrove and Duckworth and Sens. Stephenson, Goodfellow and Niederhauser present. Rep. Garn won't be present and Rep. Morley is on his way.

Verizon Pumps Up FIOS to 20Mbps in Both Directions

After what seems like an eternity of telcos and cablecos not understanding that we like to send as well as receive data at blazing speeds, Verizon decided to launch a 20Mbps symmetrical connection for home users. The real shocker? The price tag, a paltry $65 a month, shockingly low for an incumbent offering these speeds. But hold up there, cowboy; only select residents in New York, New Jersey and Connecticut will be able to get the service right now.

Analysts are predicting that this move might put pressure on cable companies to start competing on the upload side of things as well. Most DSL and cable modem connections download about 10-20 times faster than they'll upload, a big gap that forced the FCC to make "broadband" 200K in both directions and "high-speed" 200K in one direction only. I'm hoping that maybe Comcast or Qwest will give us a bit more than the lousy 768K we currently have to suffer with lest Verizon decide to "outgrow" its current territory.

Are You Ready For Digital TV?

February 17, 2009 might be known as the day the airwaves died, at least for people unprepared for the switch to digital TV. Britain has already leaded ahead in this respect with the first analog signal going down for a dirt nap last Tuesday. Now Best Buy starts blazing a trail by eliminating its entire stock of analog TVs that won't be able to pick up over-the-air signals when the switch occurs. Stores still carrying older sets have been under intense FCC scrutiny lately for failing to comply with labeling requirements that have been in place since May. If you're still hanging onto that old analog set (like I am), don't fret. Uncle Sam will give you some coupons for converter boxes and cable systems will be required to support analog sets through 2012.

Comcast Filtering BitTorrent, Gnutella… and Lotus Notes?! (And They Profit From Wiretaps Too!)

It broke earlier this week that a reporter from the Associated Press had confirmed what we all knew, that Comcast has been blocking people from seeding torrent files. How do they do it? By illegally impersonating your computer to reset the connection, that's how. It's the same method used in China to block websites the government doesn't want you to see.

It gets worse, though. Further testing shows that Comcast is also blocking Gnutella traffic as well as interrupting connections to Lotus Notes. What? How does an e-mail groupware package constitute a threat to the network? The consequences of this have been felt far and wide as telecommuters have become unable to send large attachments, World of Warcraft players can't get necessary software patches and Linux junkies everywhere have to resort to slower methods of getting their ISO files.

Meanwhile, they continue to be Really Evil™  by charging upwards of $1,000 for government wiretaps. Is it any wonder that some folks are so upset that Comcast complain sites (like ComcastMustDie.com) are popping up all over the place?

Reminder: Government Competition and Privatization Subcommittee to Meet Thursday October 25 at 9AM

Just a reminder that the Government Competition and Privatization Subcommittee will be meeting this Thursday, October 25, at 9AM to discuss possible legislation in the upcoming session of the legislature. Proposals include creating a standing commission to oversee potential government competition with private entities, up the reporting requirements for local governments and potentially limit UTOPIA membership yet again. This is probably going to be the last meeting of this subcommittee for the year so it will be critically important that as many of us as possible attend this meeting to head off bad legislation before it gets to the general session.

Hope to see a bunch of you there! 

AT&T Plans Ambitious Expansions

As I've said before, it's sometimes a Good Thing™ to let news age for a bit before writing about it. Not only does it let the story develop a bit more fully, but you also get a much better idea of the big picture. Take for example the plans that AT&T has for expanding their reach within and beyond former SBC and BellSouth territories.

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AT&T Imitates Sprint and Verizon by Suing Vonage

I'm thinking I might need to change my home phone provider in the not too distant future. Following up on the expensive litigation brought by Sprint and Verizon, Vonage now has to go to court to defend itself against AT&T for alleged patent infringement. It's too early to tell if AT&T's patents are along the lines of Verizon's "we own the Interweb" patent, but my bets are that the prior art defense would play well if Vonage actually has to stones to defend itself instead of rolling over. Then again, history has shown us that Vonage just wants to cough up its lunch money so that the bullies leave it alone.

FCC Delays 700MHz Auction Admidst Much Weeping, Wailing, Gnashing of Teeth

With how ugly the fight for the 700MHz auction has gotten, the FCC has decided to delay the auction by eight days. FCC Chairman Kevin Martin also announced that there will be a limit of $10B on bidding, a move designed to keep big companies from outspending all of their smaller rivals. This comes as Frontline Wireless asks that Verizon be barred from the auction over their pending lawsuit against open access requirements, smaller carriers complain that they don't have a chance and AT&T (among others) voices that the rules are unfair. I could see why some of the potential bidders would be upset. After all, it's come out that the FCC allows some well-connected lobbyists to skirt rules and get information ahead of rivals.

Meanwhile, AT&T has decided to side-step some of the furor and snap up some 700MHz bands from Aloha Partners that won't be up for auction. They'll also not be subject to the same open access rules that the upcoming auction will be encumbered with. That might not matter as the FCC considers the so-called "cellular Carterphone" rule for all cellular phone carriers that would allow any device to be used on any network.

Comcast to Customers: All Your Dollars Are Belong To Us

Seems like Comcast is bumping up rates all over the nation. Chicago, Houston, Seattle, San Francisco and Lancaster, PA have all seen big bumps in pricing from 6.9% to as high as 12.5%. This is on top of a 4.1% increase foisted upon us in January. The company is blaming increased customer service costs; they've hired about 400 more techs and customer service staff. I call it a shameless attempt to use TV revenues to further subsidize their other offerings. How long until the Wasatch Front sees yet another pricing jump?

(Hat tip: The Consumerist)