Telco Strategy Shift: To the States

by Matt Stoller, Thu Oct 05, 2006 at 11:57:50 AM EDT

We beat them in Congress, and depending on what happens on November 7th, we may win a full victory next session. The telcos are already changing their strategy to head off a Democratic Congress. This is from Tech Daily:

Lead Verizon Communications lobbyist Tom Tauke announced that the company is likely to halt its efforts in pursuing federal rules on video franchises should pending legislation fail this year. Bloomberg News reports that Tauke said the company instead would shift its focus to obtaining statewide agreements in Massachusetts, New York and Pennsylvania. Although federal language that would help telephone companies like AT&T and Verizon offer video services has broad support, the proposal has stalled because of various objections to the broader bill. "It is unclear whether there will be an opportunity" to pass a bill this year, Tauke said. "I do not expect we will mount an effort for federal legislation in 2007."

This is essentially a threat to Congress - if you don't pass something soon (in the lame duck session, for instance), we're going to bypass you and go directly to the states. This has been coming for some time. Unfortunately for Tauke, it looks like tough, progressive Democratic Governors are going to be elected in Pennsylvania, Massachusetts, and/or New York, and these Governors are likely to want massive build-out or net neutrality protections, and probably both. Which means of course that they will have to go back to Congress for Federal legislation on video franchising.

Does anyone know how Eliot Spitzer, Deval Patrick, or Ed Rendell stand on net neutrality? I'm not aware of any public statements.

Update: Eliot Spitzer is a strong supporter of net neutrality.

"Congress must not permit the ongoing consolidation of the telecommunications industry to work radical and perhaps irrevocable change in the free and neutral nature of the Internet," wrote Spitzer, who is running for governor in the fall election. He was referring to the recent mergers between AT&T and SBC Communications and Verizon and MCI.

Tags: Deval Patrick, Ed Rendell, Eliot Spitzer, Massachusetts, net neutrality, New York, Pennsylvania, telecom (all tags)

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Re: Telco Strategy Shift: To the States

Eliot Spitzer has spoken out pretty clearly in favor of net neutrality. I'm a provincial New Yorker, though, and can't speak to the others.

by sb 2006-10-05 12:21PM | 0 recs

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Re: Telco Strategy Shift: To the States

I recall Spitzer being strongly pro-neutrality as well. I don't have a link, though.

by lightyearsfromhome 2006-10-05 12:27PM | 0 recs

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Re: Telco Strategy Shift: To the States

Some quick googling finds this zdnet story. Strong pro-Net Neutrality statement by Spitzer.

"Congress must not permit the ongoing consolidation of the telecommunications industry to work radical and perhaps irrevocable change in the free and neutral nature of the Internet," wrote Spitzer, who is running for governor in the fall election. He was referring to the recent mergers between AT&T and SBC Communications and Verizon and MCI.

My searching found nothing on Rendell.

by juls 2006-10-05 12:54PM | 0 recs

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Re: Telco Strategy Shift: To the States

This is essentially a threat to Congress - if you don't pass something soon (in the lame duck session, for instance), we're going to bypass you and go directly to the states

Why exactly would Congress care? One less highly-charged unpopular issue for them to worry about as they pop their lame-duck Zoloft.

by lightyearsfromhome 2006-10-05 12:26PM | 0 recs

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Re: Telco Strategy Shift: To the States

They want power.

by Matt Stoller 2006-10-05 12:28PM | 0 recs

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Re: Telco Strategy Shift: To the States

And contributions.

by BriVT 2006-10-05 04:57PM | 0 recs

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Even if Ahnold retains his governorship

Cali is home to the largest chunk of content providers who would be affected by Telco efforts!

by crazymoloch 2006-10-05 12:30PM | 0 recs

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Re: Telco Strategy Shift: To the States

Yes, but that strikes me as a very abstract view of 'power' as such. I can't see your average congressperson viewing it as a threat.

I dunno. Insert The Kinks "King Kong" here.

by lightyearsfromhome 2006-10-05 12:37PM | 0 recs

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Re: Telco Strategy Shift: To the States

Didn't Rendell cave on community wi-fi? That doesn't exactly bode well for his opposing the telcos on other issues.

by RT 2006-10-05 01:13PM | 0 recs

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Re: Telco Strategy Shift: To the States

Trust me, you are not the only one who has forgotten that sell out by Rendell. Not by a LONG shot.

Ed Rendell tucked tail and ran like a dog beaten to within an inch of his life. Verizon and the big telcos have Rendell's ear. Rendell doesn't have nearly the backbone of Spitzer and Patrick when it comes to standing up to the telcos.

BTW, I believe Patrick has community wifi for the entire state as a plank in his platform.

Rendell can suck it.

by manyoso 2006-10-05 03:34PM | 0 recs

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Phil Angelides was an early supporter...

of Net Neutrality and wrote a letter to Boxer alerting her of the issue very early on and prompting her to take her strong stance.

-C.

by neutron 2006-10-05 02:34PM | 0 recs

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Re: Telco Strategy Shift: To the States

Wait a minute--is this the same Tom Tauke who won the Republican Senate nomination against Tom Harkin in 1990??

by Sandwich Repairman 2006-10-06 01:22AM | 0 recs

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Re: Telco Strategy Shift: To the States

Yes.

by Matt Stoller 2006-10-11 05:37AM | 0 recs

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Re: Telco Strategy Shift: To the States

Matt, Tom Tauke has written at PoliBlog with a link to the post above. It's here: http://poliblog.verizon.com/PoliBlog/Blo gs/poliblog/TomTauke9/105/Video-Choice-M any-Fronts-One-Goal.aspx

by CZ 2006-10-10 11:15AM | 0 recs

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Re: Telco Strategy Shift: To the States

PA's Commonwealth status may ensure we have potholes, but it also allows Municipalities to scuttle bad legislation, such as Cable Choice. Verizon is still pursuing franchises, but on a case by case municipality level since they lost at the state level. And yes, Rendell caved on wifi, but there's legislation being put forth to correct that, I believe.

Bell South is trying to make this same end run in Tennessee, while AT&T is working to do the same thing in Michigan.

It seems to me that the whole grassroots movement surrounding Net Neutrality may have unhinged this state by state initiative before it could get off the ground, at least in the states where it got started after Net Neutrality began getting a lot of play. Case in point-- Verizon got a statewide franchise bill passed in NJ before all the hoopla. It'll be interesting to see how it happens in other states. California seems to be the exception to that speculation, but with Arnie as governor that comes as no surprise.

Meanwhile Santorum is so wishy washy on Net Neutrality it isn't funny. But all that Comcast dough sitting in his Campaign Chest is most likely the reason. Specter hasn't declared either way but I suspect that since he was the sponsor for the bill that whitewashed Bush's wiretaps that he'll follow Dubya like a good little lackey.

Just in case you folks weren't following, there's an FCC hearing in NYC tomorrow night with Copps and Adelstein re Media Mergers and Minority Representation in the Media.

by bj 2006-10-18 09:51AM | 0 recs