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United States Your Rights Online

Supreme Court Rules Against Community Telcos 399

acherrington writes "Today the Supreme Court ruled against a group of Missouri communities offering telecom services where it is prohibited by Missouri law. At least eight other states -- Arkansas, Iowa, Minnesota, Nebraska, Nevada, Tennessee, Texas and Virginia -- have similar laws. Today's ruling will most likely result in more lobbying by the Baby Bells at the state level to stop community-sponsored telecoms who are fed up with poor service and monopolies."
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Supreme Court Rules Against Community Telcos

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  • They saw it coming (Score:5, Informative)

    by RobertB-DC ( 622190 ) * on Thursday March 25, 2004 @01:01PM (#8669483) Homepage Journal
    The local electric co-op, Trinity Valley Electric [tvec.net], had a phone subsidiary, Trinity Valley Services [tvec.net]. When we moved to their service area last summer, I was exctatic to be out of the grasp of the scandal-plagued monopoly [txucorp.com] I'd been forced to buy power from before. So when we signed up for electricty and they asked if we'd like to use their phone service, we said heck, yeah!

    Last month, we got a note in the mail that TVS was now "Cedar Valley Communications", and no longer directly affiliated with TVEC. This was pretty depressing... it was so nice to call up the phone company and talk to a person instead of to a robot.

    Now, it makes sense. With an 8-1 decision in the works, TVEC/TVS must have known that they were about to get hammered by Texas law. With little hope for legislative help from the Republican puppet government [takingontomdelay.com] in Austin, they spun off TVS.

    At least I don't have to worry about getting a bill from the clueless megacorporation [sbc.com] I was stuck with before.
    • by Ungrounded Lightning ( 62228 ) on Thursday March 25, 2004 @01:29PM (#8669871) Journal
      With little hope for legislative help from the Republican puppet government in Austin, they spun off TVS.

      That seems an odd position to take, given that it's the Republican FCC commissioner that keeps pushing for the legalization of competition in communications, and fighting off the courts when they try to turn it back.

      The local electric co-op, Trinity Valley Electric, had a phone subsidiary, Trinity Valley Services. [...] Last month, we got a note in the mail that TVS was now "Cedar Valley Communications", and no longer directly affiliated with TVEC. [...] Now, it makes sense. With an 8-1 decision in the works, TVEC/TVS must have known that they were about to get hammered by Texas law.

      That doesn't make sense either. As another poster has already pointed out, the Supreme Court decision was against GOVERNMENTAL ORGANIZATIONS (cities, townships, counties, etc.) running phone companies. A Co-op is a corporation with its customers as its stockholders - as strictly private eneterprise as any other corportation. Unless TVE is a misledingly-misnamed government entity the ruling would not apply to it.

      When we moved to [TVE's] service area last summer, I was exctatic to be out of the grasp of the scandal-plagued monopoly [bucorp] I'd been forced to buy power from before.

      As far as scandal-plauging, there are few scandals to equal the routine operation of nearly ANY government operation. I, for one, am more than happy to see the big government, now that it's broken up the national telephone monopoly (a creature of its own regulation), telling the little governments to dump their own creatures.

      To anyone who lives in a region with its own city phone service, who believes that their service is good and wants to keep it that way, I have this suggestion:

      Go to the legislature of the governmental body that runs the little tellco (i.e. city council or whatever) and suggest they spin it out as a coop. (This will preserve much of its structure, and give the customers even more say in its operation than they had as citizens of the parent governmental division.)

      If you don't do this, expect your government to sell it to the local corporate-behemoth tellco at a kickback-driven bargan price - which will be paid off at compound interest in your next telephone bills.
      • by ninejaguar ( 517729 ) on Thursday March 25, 2004 @01:47PM (#8670109)
        Republican FCC commissioner that keeps pushing for the legalization of competition in communications, and fighting off the courts when they try to turn it back.

        That's baloney. Powell's son is trying to get others to do his work for him, and the courts have stated he hasn't been granted the authority to do that by congress. You can paint it anyway you want, but I have paint thinner.

        = 9J =

      • by Anonymous Coward
        The Republican FCC can out strong against the little guy in this case as you can see in the first two paragraphs of the Court's decision.

        The little guy in this case was a group of rural counties.

        The court ruled that the word "any" in the federal law prohibiting states from regulating any telecom does not mean that states cannot regulate counties because they are political subdivisions of the states and therefore states should have a right to regulate themselves.

        So much for the Rublican idea of local cont
      • They already did that with the local cable company.
        Rates are up 80% since. Sure we have 10 more channels, but most of them worthless.

        I WILL be at the city council meeting if they ever even hint about selling of the municipal phone company.

        And yes, I do believe that the cable was sold off for a kickback-driven bargin price.
      • "As far as scandal-plauging, there are few scandals to equal the routine operation of nearly ANY government operation. I, for one, am more than happy to see the big government, now that it's broken up the national telephone monopoly (a creature of its own regulation), telling the little governments to dump their own creatures."

        You're a Republican, your boys control Congress, the White House, and the Supreme Court, and have taken "scandal" to depths unplumbed since Caligula: ignoring al Qaeda until 9/11/01
      • That seems an odd position to take, given that it's the Republican FCC commissioner that keeps pushing for the legalization of competition in communications, and fighting off the courts when they try to turn it back.

        Republicans say they are for individual rights, states rights, free markets, free enterprise, and competition. But saying and doing are two different things.

        In fact, "individual rights" is just a code word for pushing a Christian right agenda; when people try to assert their individual right
  • Good news (Score:4, Informative)

    by daveschroeder ( 516195 ) * on Thursday March 25, 2004 @01:02PM (#8669485)
    The ruling prohibits governmental entities (cities, counties, other municipalities, or groups thereof) of entering the telecom business.

    Nothing precludes any small private coop, company, or partnership from becoming a telecom provider.

    The Telecommunications Act of 1996 says that "states may not prohibit 'any entity' from getting into the phone business. That does not include political subdivisions of states, said Justice David H. Souter, writing for the court."

    This ruling is a good thing, as it keeps government out of the telecom business, where it belongs.
    • Re:Good news (Score:5, Insightful)

      by lukewarmfusion ( 726141 ) on Thursday March 25, 2004 @01:07PM (#8669567) Homepage Journal
      I don't know about that. You think a small private company is going to be able to compete with the big boys? Sorry, but I'd rather have a gov't. backed telco at low rates and comparable service than deal with Comcast.

      I don't want it controlled by the gov't (even on a community level), but our local ISPs are pretty weak in service, support and pricing. They just can't compete.

      I don't see why the gov't can't invest in (and get a return from) a local ISP. Let the ISP run the system, let the gov't. help to fund it and when the profits appear, some of those go back to the gov't.

      It avoids privacy issues while still allowing the consumers (and the government) to benefit by providing reasonable competition against the giants.
      • Re:Good news (Score:3, Insightful)

        by krem81 ( 578167 )
        The government's purpose is not to provide you with cheap utilities.
        • by ERJ ( 600451 )
          Thank goodness someone here understands this. krem81 just made my buddy list.
        • Re:Good news (Score:3, Interesting)

          by Skye16 ( 685048 )
          The government's purpose was not to provide us with cheap utilities. That doesn't mean it can't change.
        • Re:Good news (Score:4, Insightful)

          by Moofie ( 22272 ) <lee@ringofsaturn . c om> on Thursday March 25, 2004 @01:29PM (#8669877) Homepage
          No, but one of its purposes is to regulate harmful monopolies.
          • Re:Good news (Score:2, Insightful)

            by krem81 ( 578167 )
            While this is another controversial topic, I fail to see how "harmful" monopolies come into play here? Do you think that the your local government would provide you with better phone service than your local telco? And wouldn't your local government qualify as monopoly then?
          • But this isn't regulation. This is competition. This is like a judge of a contest only getting one entry and saying 'ah, well, I'll just enter myself AND continue judging, then!'

            It is certainly possible that the judge would remain unbiased if any confrontations were to flare up, but we can't count on that.
        • Re:Good news (Score:5, Insightful)

          by Anonymous Coward on Thursday March 25, 2004 @01:34PM (#8669950)
          The government's purpose is not to provide you with cheap utilities.
          This is what gets seen as Insightful around here? The government's purpose may not to be to provide cheap utilities, but I sure see it as their role to ensure that I'm not gouged by the utilities that are out there.

          And what the hell is wrong with people, coming together as a community (perhaps in the form of the local government) and providing cheap telephone service? I'm sure you'd be happy as a clam if I hadn't included the parenthetical remark, but isn't the government of the people and for the people?

          • Re:Good news (Score:4, Informative)

            by krem81 ( 578167 ) <krem81.yahoo@com> on Thursday March 25, 2004 @02:12PM (#8670530)
            Nothing's wrong with the community doing it. It's when the government gets involved that things go awry. See, the governments (even the local ones) have a tendency to subsidize an unprofitable venture with yours and mine tax dollars, thereby killing off the competition.
            • Re:Good news (Score:3, Informative)

              by JWW ( 79176 )
              The problem is that when you stop subsidizing the government run telco with you tax dollars and sell it off to one of the big monopolies, the extra money you end up paying them make the tax subsidies look like spare change.
          • Re:Good news (Score:5, Insightful)

            by hesiod ( 111176 ) on Thursday March 25, 2004 @02:12PM (#8670540)
            > what the hell is wrong with people, coming together as a community and providing cheap telephone service?

            That's fine, and there is nothing wrong with that, since people can choose to create a company to offer whatever the hell they want. GOVERNMENTS DO NOT AND SHOULD NOT HAVE THIS ABILITY. As for your "parenthetical remark:"

            > (perhaps in the form of the local government)

            As soon as the government gets into things they get an unfair advantage over private companies because they can subsidize things with taxpayer money, thereby ruining the other business's chances. Also, when the government controls things, they have more opportunity to demand other things. They can then demand that EVERYONE pay a certain tax, part of which goes to upgrading their telecom infrastructure.
            Well, if I don't use that phone service, I should not have to pay, but that is the way things work in the U.S. You always pay for things you'll never use.

            > isn't the government of the people and for the people?

            Yes, that statement is true. This one is not: "The government is of the people who want cheap phone service, for the people who want cheap phone service, at the expense of local phone companies."

            Would you say it was perfectly fine for local governments to get into some other business, such as web hosting? What if, since they can support it, they decided that they would offer web hosting for their community at $1 per month. You own an ISP/host in that community. Wouldn't you be pissed off that the local government effectively put you out of business? Sure, you can argue about quality of service, but that is not part of this question, since we cannot guess what the quality of service would be for a nonexistant entity.
            • Re:Good news (Score:4, Informative)

              by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Thursday March 25, 2004 @04:19PM (#8672340) Homepage Journal

              There is no reason whatsoever that the local government should not provide any service its citizenry desires, so long as it does not conflict with federal law (though IMO federal law needs to be pared back considerably) or proceed in an anticompetitive fashion. The solution to avoiding that is to have completely open government process, and in a system without sufficient citizen oversight I would not think it was a particularly good idea to let the government run anything at all.

              Using tax monies to fund the system, except as acting as its customer, is wrong. This is not solely because that would go against the will of the average taxpayer, but because it would be anticompetitive. Clearly at some point a governmentally-owned entity will have certain advantages because they will have inherent right of way on city streets, for example, but remember that carriers are required to resell some of their capacity, and they would be no different. Whether or not that's a good deal for anyone involved is another question but at least they are subject to the same checks and balances as everyone else.

              This applies to any other business as well, including your web hosting example. Unless they're spending tax money to do it, they can't offer you web hosting cheaper than it costs them to provide it. But if they provide it at their cost, then I see that as government serving the people, which is what it's supposed to do anyway.

          • OP is a troll (Score:3, Informative)

            by poptones ( 653660 )
            And these countless replies similar to yours are a direct result. The point being that many people - the people of the majority of states, apparently - agree with you on this. Only a handfull of states have laws against government creation of telcos, and it is only those states to which this ruling applies

            This was NOT a ruling against "community telcos" - in fact, it is a ruling for states rights. and the people of most states have not forbade their local governments from creating telcos.. whcih means (yo

          • Re:Good news (Score:3, Insightful)

            by stry_cat ( 558859 )

            The government's purpose may not to be to provide cheap utilities, but I sure see it as their role to ensure that I'm not gouged by the utilities that are out there.

            That's not the government's purpose either. You are responsible for how you spend your money. Government's purpose is to only protect you from fraud and force. I can see how you might have come to your incorrect conclusion as the government has way overstepped it's bounds by granting corporations monopoly privileges.

        • Re:Good news (Score:5, Insightful)

          by jhoger ( 519683 ) on Thursday March 25, 2004 @01:35PM (#8669958) Homepage
          The US is a democracy.

          The government's purpose is whatever its citizens decide it should be.

          If its citizens want to replace a quasi government entity like a phone company with a genuine government provided service, it's OK. We had a terrible power crisis for example in California. Who avoided being raped by Enron, et al? LA County, since they generated their own power.

          There are reasons to privatize things, and their are reasons not to. Don't make it out like it's so obvious.
        • Re:Good news (Score:5, Insightful)

          by theLOUDroom ( 556455 ) on Thursday March 25, 2004 @01:38PM (#8670003)
          The government's purpose is not to provide you with cheap utilities.

          Actually, in some cases it is. (Roads, Buses, etc)
          Consider the postal system for example. It's a government-run monopoly that seems to work just fine, doesn't it?

          The gov't DOES have a place providing services like this when whoever provides the service is going to have a local, regional, or country-wide monopoly. Without heavy government regulation, or a gov't run service, customers are going to be forced to pay the "monopoly price" instead of the "fair market price" this is a bad thing for everyone except the monopolist.

          The gov'ts purpose is to provide for the welfare of its citizens. Keeping them from getting raped for telephone service falls under this goal.

          IMO, the power and phone lines should be gov't owned, just like the roads. They are a public utility.
          • Re:Good news (Score:3, Insightful)

            by krem81 ( 578167 )
            If phone lines were government-owned you would have no DSL, VOIP or Fax lines. Consider one of the examples you gave: the Postal System. If you were to pick an Express Mail service would choose FedEx, UPS, Airborne or USPS? Chances are, it's something other than USPS. Now, the government does not allow anyone other than USPS to run postage mail. Do you honestly think that FedEx couldn't compete with USPS, if it was the other way around? I'll agree with you that some (but very few) things should be paid f
        • Re:Good news (Score:3, Insightful)

          by Big Jojo ( 50231 )

          The government's purpose is not to provide you with cheap utilities.

          Hit that man with a cluestick!

          I've often lived in places with local power utilities. And water. And sewage, and waste disposal. And cable TV. The reason telco is often such an exception is that telco service was historically highly regulated, to serve the same goals as other local utilities.

          The government's purpose is to support a healthy community, and oddly enough it turns out that everyone wins when utilities are affordable .

        • It the realm of monopoly, the gov't is not competing or driving away a fest of businesses. They are, often, dealing with and/or replacing a single business. When that business is abusive, then the public wins by having public utilities.

          The city of Alameda, on the SF Bay, generates their own power. In the year of extortionistic prices(1), residents of Alameda maintained low prices.

          Public utilities will often fail when the don't innovate where private companies could.

          Clearly, despite (ironythere) the

      • I don't see why the gov't can't invest in (and get a return from) a local ISP. Let the ISP run the system, let the gov't. help to fund it and when the profits appear, some of those go back to the gov't.

        In light of what is currently going on with the FCC and the F word, Janet's boob, and Howard Stern, do you really want their hands in your internet traffic?

        'Invest in' will = 'control of'.
      • I don't know about that. You think a small private company is going to be able to compete with the big boys? Sorry, but I'd rather have a gov't. backed telco at low rates and comparable service than deal with Comcast.

        Therefore, you'd rather see the tax rates of your community go up to in part pay for your Internet service, especially because that distributes the cost onto people who don't care about that service? :)
    • by willtsmith ( 466546 ) on Thursday March 25, 2004 @01:08PM (#8669579) Journal

      You would think that the Congress of the 90s would be unafraid of small towns starting their own telcos. After all, governement is so "inefficient" in their minds that they couldn't possibly compete with such "efficient" and capable telcos like SBC, MCI and Global Crossing for services like DSL, etc....

    • Re:Good news (Score:5, Informative)

      by Patman ( 32745 ) <pmgeahan-slashdot@NOsPaM.thepatcave.org> on Thursday March 25, 2004 @01:16PM (#8669696) Homepage
      The ruling prohibits governmental entities (cities, counties, other municipalities, or groups thereof) of entering the telecom business

      This is incorrect.

      The ruling states that a state may make a law banning local municipalities from providing telco service. If the state chooses not to make such a law, local municipalities are still free to enter the telco market
    • This ruling is actually quite a good thing.. It prevents a inept city council from taking over their telephone service and pretty much wrecking it. This ensures that TRUE competition can be established when and if a contract expires or the company is forced to default on it.

      BUT it won't stop the community from banding together after the city gets done with the a$$kicking and going Co-Op!

      Read the bloody ruling BEFORE going off half-cocked, please?

      This thread is pretty much owned by the Chicken Little Synd
  • Wow. (Score:4, Interesting)

    by mind21_98 ( 18647 ) on Thursday March 25, 2004 @01:05PM (#8669530) Homepage Journal
    This opens up a bunch of things now. Does this mean I can't let people share my wireless connection, for instance, without them breathing down my neck? The decision means total support for the local monopoly, which is sad indeed.
    • I don't think that sharing your broadband connection via wifi makes you an ISP any more than giving your buddy a sandwich makes you a restaurant.
  • by daddy norcal ( 734037 ) on Thursday March 25, 2004 @01:05PM (#8669536) Homepage
    This will be a good thing for emerging private telecom businesses, as it will remove competition coming from groups funded by state or city government. The government has no place competing with private citicens in the telecom industry, and today's decision by the Supreme Court, was the right one.
  • I guess when they talk about supporting "states' rights" they don't really mean the devolution of authority from the central government to more local ones. They just mean that the states have all the rights.
  • Hands OFF! (Score:3, Funny)

    by Doesn't_Comment_Code ( 692510 ) on Thursday March 25, 2004 @01:06PM (#8669552)
    Among the industries taken over or overregulated by the Gov:
    Rail Trains
    Pharmacies
    Telecom

    Current status:
    Rail Trains - all but dead
    Pharmacy - corrupt and overpriced
    Telecom - sucks oh so bad

    If only there were a pattern so we could learn something from this.
    • Re:Hands OFF! (Score:3, Insightful)

      by Anonymous Coward
      Industries underregulated by Govt:
      E-Voting
      Operating Systems
      Broadband

      Current status:
      E-Voting - Sucks and keeps showing problems yet they keep using it
      Operating Systems - One monopoly in charge
      Broadband - Sporadic and oligopoly in charge

      If only there were a pattern so we could learn something from this.
    • Re:Hands OFF! (Score:4, Insightful)

      by lukewarmfusion ( 726141 ) on Thursday March 25, 2004 @01:12PM (#8669634) Homepage Journal
      Pharmaceuticals are corrupt and overpriced because of the pharma companies.

      Telecom sucks oh so bad because of the telecom companies.

      Just look at the pricing, support and service agreements for the major players. Those are their rules - not the government's. When it comes to the government passing legislation that benefits those companies, look at what's behind them - usually a lobby group or one of the companies themselves putting heavy pressure in the right places.

      Which leads many people to question why these corporations have so much influence....
      • Re:Hands OFF! (Score:3, Insightful)

        by pizzaman100 ( 588500 )
        Pharmaceuticals are corrupt and overpriced because of the pharma companies.

        Maybe he was referring to the excessive FDA regulations. One of the reasons drugs cost so much is because of all the hoops you have to jump through to get a new drug approved. Average time from start to finish to get a new drug from molecule to FDA approval is 15 years. [nationalreview.com]

        • Good point.
        • Yeah,
          My wife just went to Mexico. She said you can buy ANYTHING you want there with no prescription for a couple bucks. There are obviously problems caused by such a loose system (some regulation is good). But they don't have the same problem of poor families and elderly not being able to afford the medicine to keep them alive and healthy.
        • Re:Hands OFF! (Score:4, Insightful)

          by American AC in Paris ( 230456 ) * on Thursday March 25, 2004 @02:08PM (#8670459) Homepage
          Average time from start to finish to get a new drug from molecule to FDA approval is 15 years.

          You say this like it's a bad thing. It's because of the FDA's rigorous testing process that America didn't have several thousand Thalidomide babies along with the rest of the world. On the other side of the coin, we've had a steady stream of scares, scandals and deaths from the largely unregulated herbal/dietary suppliment industry in recent years.

          Do you really want to be taking a drug that causes permanent hearing loss in 7% of patients, results in a six-fold increase in your chance of having a heart attack, or causes degenerative nerve damage after eighteen months' worth of use? Because if the FDA didn't test drugs thoroughly enough, that's the kind of risk you could be exposed to every time you took a new drug.

    • Re:Hands OFF! (Score:5, Informative)

      by RobertB-DC ( 622190 ) * on Thursday March 25, 2004 @01:15PM (#8669667) Homepage Journal
      Among the industries taken over or overregulated by the Gov:
      Rail Trains
      Pharmacies
      Telecom


      I usually agree with your comments, but I think you're a bit off today.

      Rail Trains - all but dead
      True, but not because of government regulation. In fact, it was lack of government foresight that allowed the auto and tire industries to shut down rail-based public transit.

      Pharmacy - corrupt and overpriced
      In what way does this have to do with the government? Compare the "market-based" (read: monopoly-controlled) US system with the Canadian system. Note that buses of US citizens head to Canada for cheap drugs -- not the other way around.

      Telecom - sucks oh so bad
      The comparison this time would be with Europe. I'm no expert, but everything I read on Slashdot indicates that Europe's regulation of telcos resulted in a superior wireless network, while the US corporate welfare system caused a tangled mess of incompatible systems.

      "The Government" isn't the solution to all problems... but neither is "The Market".

      On the other hand, your comment has been moderated as "Funny", so maybe I just didn't get the joke and should come down off my high horse...

      • The "over-regulated" pharmacies in Canada have far lower prices than their American counterparts.

      • You're right, of course. I was just poking fun at what seems to me a comic ability of the government to intervene at the wrong times on the wrong side.

        Undoubtedly they usually get it right. And only the bad outcomes stick in our minds.
    • Yes, and if only there were a pattern to the underregulation of accounting firms perhaps we'd learn something.

      Look at the new privatized British train system - it's doing horribly. Did the government take over AmTrak, Rite-Aide and At&t or did I miss something?

    • So three hand-picked examples constitute proof of a trend. Glad to see the Libertarian line of thinking hasn't changed.
    • Re:Hands OFF! (Score:5, Insightful)

      by dschuetz ( 10924 ) <david&dasnet,org> on Thursday March 25, 2004 @01:17PM (#8669700)
      Industries formerly regulated by the government, but released to "let the market decide":

      Cable TV - rates increased, quality decreased

      Airlines - rates increased, quality and choice decreased, most of the "big 6" now rely on government bailouts

      I know there are more examples of this, but I can't think of any right now (in my post-lunchtime food coma).
      • You have a point with cable, but airlines decreased their fares dramatically under deregulation. Unless you are flying to a small town, that is. In fact, fierce competition on the big city routes is mainly why it is so difficult to make any long term profit in the airline business.
    • Re:Hands OFF! (Score:3, Informative)

      by tverbeek ( 457094 )
      If only there were a pattern so we could learn something from this.

      If only there were any context to this, so you could learn something meaningful from it.

      • Rail transit is so feeble because it's been undercut by huge government spending on roads. Public transit systems were deliberately hobbled because they posed an obstable for the then-growing US automotive industry.
      • The overpricing of pharmaceuticals is due to patent-guaranteed monopolies; the only ways to combat that are to the full libertarian route
      • Rail transit is so feeble because it's been undercut by huge government spending on roads. Public transit systems were deliberately hobbled because they posed an obstable for the then-growing US automotive industry.

        Wrong. Rail transit (especially intra-city rail transit) is so feeble because automakers (especially GM) conspired to make it so [culturechange.org].
    • Re:Hands OFF! (Score:3, Interesting)

      Among the industries taken over or overregulated by the Gov: Rail Trains

      Breaking up large monolithic industries into lots of little companies and contracts can also be bad. Look what happened to the railways in the UK. We originally had separate companies running the railways profitably in each part of the country. These were then nationalised into British Rail (and ended up requiring government subsidies to keep running). Then the government decided to privatize the company again. But instead of keeping
    • Don't forget:
      - defense of victims against robbers, burglars, muggers, rapists, ...
      - construction and maintainence of roads and bridges
      - maintainence (especially fire-protection) of old-growth forests and waterways

      I could go on for pages. B-(
  • Disheartening (Score:5, Insightful)

    by Anonymous Coward on Thursday March 25, 2004 @01:09PM (#8669584)
    Whats happening to the little guy, or the right of communities to represent themselves ? The local community has traditionally been the proving ground for an enterprising individual. Communities no longer seem to have any power, or rights in the locations they represent.

    I remember a case in Roswell (or was it Alpharetta), GA where a car (Lexus?) dealership huffed and puffed and blew down the wishes of the people who wanted to keep the area as a nature preserve. That community lost the battle to the car dealership. Not related to telco, but none the less, an erosion of community rights, not to mention common sense.

    Sigh....
    • Re:Disheartening (Score:3, Informative)

      by Dun Malg ( 230075 )
      I remember a case in Roswell (or was it Alpharetta), GA where a car (Lexus?) dealership huffed and puffed and blew down the wishes of the people who wanted to keep the area as a nature preserve. That community lost the battle to the car dealership. Not related to telco, but none the less, an erosion of community rights, not to mention common sense.

      Common sense says that if the community wanted a nature preserve there, they should have purchased the property and made it one. Running to the government to ba

  • pro states' rights (Score:4, Informative)

    by OglinTatas ( 710589 ) on Thursday March 25, 2004 @01:10PM (#8669607)
    If I read correctly, the ruling is pro-states' rights, not anti-community telecom. They assert that states have the right to prohibit cities from engaging in a particular activity, not that states are required to prohibit such activity. IANAL, I did not read this article but I read a similar article earlier, insert your disclaimer here.
    • Oops, I forgot to include the point I was trying to make: Take the matter up with your state legislators, the ball is still in their court.
    • From a skimming of the syllabus for the ruling [akamaitech.net], the Court sees city and county governments as subdivisions of the state, and the state is therefore regulating itself in restricting these activities.

      Title 47, 253(a), states, "No State or local statute or regulation, or other State or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service."

      The Court sees the state as the regulator regulating itself.
  • by whoever57 ( 658626 ) on Thursday March 25, 2004 @01:11PM (#8669621) Journal
    ... the word entity [reference.com]

    Was this case badly reported, or did the Supreme Court just ignore the plain english used in the law?

    • So-called "plain english" in law is generally anything but "plain". It's subject to interpretation, which the courts are then required to examine and rule on the legality and constitutionality of said interpretation.

      IANAL, of course, nor do I really agree with the concept behind the decision. Towns and cities that fill in service gaps by building and maintaining infrastructure (like power plants and transmission lines) shouldn't be precluded from offering other services that take advantage of that investme
  • by kcubkg ( 752370 ) on Thursday March 25, 2004 @01:12PM (#8669644)
    I first read the headline as "Supreme Court Rules Against Taco" and thought oh jeez what has he done this time?
  • Does anyone actually think that this Supreme Court and it's ties to big business and partial views (Scalia and Cheney) [boston.com] will actually rule for the people? Then I've gor some land to sell you!
  • by Tarwn ( 458323 ) on Thursday March 25, 2004 @01:20PM (#8669738) Homepage
    Somehting like Community Government...

    The article wasn't that long, took all of half a minute to read. It boils down to:

    1. Earlier law states entities may create their own telco groups (close enough, I don't have that window open anymore)
    2. Local and city governments are sub-parts of the state government
    3. The government doesn't count as an entity in part 1
    4. Therefore: Local and city governments do not have this allowance under the specied law.

    3 cheers for all the posters crying about loss of rights and rewriting laws and such, if they had read the article it probably would have been slashdoted by the time I got there :)
  • What about VOIP? (Score:3, Interesting)

    by aztektum ( 170569 ) on Thursday March 25, 2004 @01:23PM (#8669799)
    I read the article(more like a blurb) but I haven't dug further (I live in WI so it doesn't mean much to me right now)..

    Couldn't these companies use VOIP? As of right now VOIP isn't considered a typical phone service and regulated by Big Brother correct?

    Or are they typical overly broad and generalized laws that apply to any way of providing a service using a phone?
  • I'm curious what (if any) effect this ruling will have on telcos sponsored by non-profit organizations. My undergraduate college is has just started a communications company to serve the community. Which side of the line do these organizations fall under?

    JGG
  • by LostCluster ( 625375 ) * on Thursday March 25, 2004 @01:27PM (#8669849)
    In the way the USA economy is set up, there's only one place for a government-backed company to exist. That's where there's no way any business could provide that service if it had to compete, yet that service is vital to our way of life.

    For example, take the US Postal Service. A daily mail pickup and drop-off at every address in the USA (including the most rural) would simply be impossible if there was not one and only one company providing that service. This is a perfect case of a service the rest of the government depends on, that likely would not exist if the free market was left to fend for itself. FedEx and UPS can compete in the high-price overnight market with the USPS, but nobody else has the ability to get a physical document from any point in the USA to any other point in the USA for 37 cents, or less than that even if you have a large volume of mail and pre-sort it properly.

    In the case of Amtrak, the government is keeping the national railroad network alive for the sake of transportation redundancy. This came into play after the 9/11 attacks when all air traffic in the USA was grounded... the trains were able to keep running and some people and things were able to reroute themselves to get where they were going.

    This is also why the government keeps up the Interstate highways. In theory, in the state of war on the US mainland, the Army could easily control any stretch of Interstate highway so that vital convoys could have a fast and trafic-free mostly-direct path from one metro area to another.

    So long as there's still a profit to be made in the ISP business, then the government doesn't belong in it, just to regulate it so things don't get out of hand. If things ever do get totally out of hand (and we're nowher near that yet), then the government should step in to make sure there's affordable Internet access for the sake of keeping the network alive.
    • by Big Jojo ( 50231 ) on Thursday March 25, 2004 @02:06PM (#8670428)

      Oh, get a clue.

      Rail traffic ... have you ever considered the subsidies the government offers to the auto, road, and aviation industries? In terms of subsidy per passenger mile, those industries are far more heavily subsidized than rail traffic. Or to put it differently, the problems rail traffic has are basically that its competition is so extensively subsidized that it's all but impossible to compete.

      "Our" government is quite heavily in the business of distorting the economy. Primarily to benefit military industries (the auto industry only really took off after WW2, as a way to turn tank-production capacity into a dual-use technology) at the expense of more naturally efficient mechanisms. Although the individual characters in Who Framed Roger Rabbit? were clearly not real, except maybe Jessica Rabbit!, the plot to abolish the public transport system is very well documented as being true. But the major war contractors were allowed to get away with it.

      Profit is not God. Although far too many of the people now running "our" government worship it, even when it conflicts with their basic responsibilities to support healthy (local) communities and to support civil rights.

    • Not quite correct (Score:3, Informative)

      by Sycraft-fu ( 314770 )
      The rail network is not kep alive for redundancy, it's a VERY efficient method of cargo transportation. Almost all of the truck cargo that had any significant distance to go gets driven to a rail station, loaded onto a train, moved to another station, then unloaded and hooked to trucks.

      In Flagstaff, Arizona you see 60+ trains carring thousands of tons each day.

      Passanger transport isn't the railroad's main use. It's not like Europe. In Europe, there's a ton of light rail, made for high speed passenger trai

    • This is also why the government keeps up the Interstate highways. In theory, in the state of war on the US mainland, the Army could easily control any stretch of Interstate highway so that vital convoys could have a fast and trafic-free mostly-direct path from one metro area to another.

      In theory nothing. This is exactly why the U.S. interstate highway system is so well developed. The intent was speficially to allow military vehicles quick access to any part of the country. Interstate highways were also d
  • This is great (Score:4, Interesting)

    by deadgoon42 ( 309575 ) * on Thursday March 25, 2004 @01:29PM (#8669870) Journal
    This is one case where it is better to have a large corporate monolith providing your service rather than a small municipal monopoly. One of my friends lives in Atoka, TN and their only choice for service is the Millington Phone Company. For two years that phone company has been promising broadband and better service, but have never come through on those promises. My friend is very mad because people just 200 yards down the street have BellSouth and broadband service. She even asked BellSouth if they could run a line the 220 yards, but BellSouth said that they couldn't because of the Millington monopoly. My friend has talked to whoever she could, even the FCC with no results. It looks like the Supreme Court was who she should have been talking to all along.
  • Article Troll (Score:5, Informative)

    by andih8u ( 639841 ) on Thursday March 25, 2004 @01:31PM (#8669896)
    This has nothing to do with community telcos; it's about city and state governments getting into the telco business. The article headline is a blatant troll. There again, it is Michael.
  • by alen ( 225700 ) on Thursday March 25, 2004 @01:36PM (#8669967)
    with businesses. Governments tax any business in their areas. It's not fair to be able to tax a business and then use the funds to provide a competing service.

    Privately owned co-ops are OK, but the costs may be prohibitive.
  • Perspective (Score:4, Interesting)

    by randall_burns ( 108052 ) <randall_burnsNO@SPAMhotmail.com> on Thursday March 25, 2004 @02:07PM (#8670445)
    Communications Act of 1934 [wikipedia.org] helped create the Bell System monopoly and ensured that broadcasting would be dominated by large corporations. Now, there is considerable debate on the constitutionality of important aspects of that law. It is understandable that the Federal government has jurisdiction to regulate use of radio transmissions that cross state lines, but it is more questionable whether the federal government should have anything much to say about companies or local governments that do little outside their own jurisdiction.


    The area that I'm concerned about here: will this regulation retard development of free wireless services like The Personal Telco Project [personaltelco.net].

  • by Fantastic Lad ( 198284 ) on Thursday March 25, 2004 @03:56PM (#8671989)
    In Canada, we had one telco providing everything.

    Bell Canada. It was the only game in town. A MONOPOLY. But, it was under government control, and (at that time), the government wasn't (so much) the enemy of the people. In regard to the telecom game, they pretty much did a worthy job. That is, if Bell screwed you, a simple call to the CRTC would get their butts kicked into shape and your connection flowing nice and smooth.

    In the Eighties, it cost $15 a month for basic service. There were no extra fees, and Bell couldn't refuse to hook you up. FIFTEEN BUCKS a month.

    What did competition bring?

    Well, first of all, there isn't actually any competition. There's STILL only one phone system; it's just that now third party companies are allowed to buy discount bandwidth on that one system and re-sell it at lower rates. --And they don't have to pay to help maintain the physical system. Hmm.

    And how does the phone company react to all that dropping revenue and the increasing cost of maintenance and development in a growing market? Why, they raise the cost of basic local service! Something goes wrong with your land line? Well, now it costs $100 bucks just to get some contracted company out to look at your phone. (Unless you buy the 'insurance' package for a few extra dollars per month).

    And now if somebody screws you, who do you call? That's right! Nobody. Now, if you're unhappy, you're supposed to switch over to a different carrier, because that's how competition works!

    On paper, anyway. --And only if a couple of chapters and logical positions are deliberately missing from the Free Market handbook.

    If there was 'real' competition, there'd be more than one company stringing lines up all across the country. And that's called, "redundant, wasteful stupidity". Because competition slims down bloated structures, right? Sure.

    There is NOTHING wrong with the idea of socially controlled telecommunications. Communications shouldn't BE a profit-making venture. It's a vital resource to a healthy society. Do you want to talk to people who enjoy sharing ideas, or would you rather communication happen among a bunch of Lawyers who think in terms of "Billable Minutes"?

    I think enough discussion and information has been presented over the years to quite put an end to the reign of 'Free Market' armchair philosophers who read a book on it once, and who vote for square-jawed right-wing criminals who promise to punish the 'lazy' unemployed, but who make policy to ensure that unemployment is nice and high so that Big Business will have permanent access to cheep labor.

    My phone service and phone bills suck now thanks to 'free market' politics and the people who push for such things. Thanks guys. The worst part is that I saw it coming, bitched and complained, and the world patted me on the head and called me silly.

    Ah well. At least most of the hobbits are using cell phones now. It's easier than ever to walk through the world unchallenged, now that most people have voluntarily radiated their brains. Just don't get caught playing by the house rules! Man! Hell hath no fury like a muggle trying to categorize you on a computerized form!

    "I don't need one of those awkward and painful a brains. See? Instead, I have a set of instructions! Much easier! Amd Thou Shalt Not. . ."


    -FL

The best defense against logic is ignorance.

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