Time Warner Cable wants legislation to eliminate competition

By Peter Smith  5 comments

Time Warner Cable really needs to work on its public image.

We've talked at length about the high costs of its proposed Tier-based broadband pricing plans, and it did back down from those (for now) after public pressure and a bit too many glances from government officials. Then came the rumors that, since they couldn't push the tiered pricing through, they were scrapping plans to roll out much faster DOCSIS 3.0 equipment in those test areas (at the same time that Comcast is actively rolling out DOCSIS 3.0 with plans to have 65% of its customers on the higher speed gear by the end of 2009).

Now comes TWC's third strike. In Wilson, NC, there's a city-owned and operated cable service called Greenlight which is offering higher speed internet and better tv channel selection than TWC does, for less money. Greenlight came into being when the City of Wilson approached TWC and local DSL provider Embarq and requested faster service for the area. TWC refused the request. And so Greenlight was born.

Now Time Warner Cable and Embarq are upset that they've got competition, and rather than try to go head to head with Greenlight on price and service, they've instead been lobbying the state government of NC to pass laws to put Greenlight out of business. And apparently they're having some success, as the NC State Senate have proposed bills that would do TWC's bidding. DailyTech has all the details on the story, and Brian Bowman, Public Affairs Manager for Wilson, has set up a blog to disseminate information about the situation. I love the blog's tagline: Broadband IS an essential utility - just like clean water and good roads. Rock on, Mr. Bowman.

I'd love to hear comments from someone who lives in Wilson. I can't imagine how frustrating it'd be to have 10/10 Mbps internet service ($99/month, and the package comes with 81 TV channels and telephone service) and have my speed cut back and my bill go up, because my state government passed laws protecting the interests of a behemoth like Time Warner Cable. And then, of course, to have to turn around and pay the very people who caused you this misfortune in the first place? Ugh.

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Peter Smith writes about personal technology for ITworld.

5 comments

    Anonymous 2 years ago
    First, the municipal broadband movement started because the free market time and again failed to deliver vital services to potential customers. Make no mistake, the local governments are just as much customers as are local citizens and businesses. And as customers, if they cannot get what they want from what vendors or service providers want to sell them, they have every right to look elsewhere or make it themselves. Many small governments and then larger ones decided that they wanted to do it themselves, or build networks with business partners other than incumbent telcos.

    Second, if a rightfully elected government, as a potential customer of particular services, decides it wants to get into a business to provide those services, then they answer to the citizens for that decision. I don't remember in my civics classes where it said we as Americans have abdicated to the telecom companies our right to hold our elected officials accountable to the will of the people. *The people,* not just some incumbent's shareholders.

    There are a couple of more points that complete this in my blog post - http://mediabriefing.wordpress.com/2009/04/22/free-markets-vs-the-public-interest

    Anonymous 2 years ago
    I hope everyone that reads this, and is upset, takes 2 minutes to write your State representative an email. You can get your representative's email from http://www.ncleg.net/ Enter your zip code on the right hand side of the page and send something as short as "I support Wilson, NC's community internet service. Please don't side with Time Warner's monopoly."It is really easy and makes a difference.
    Anonymous 2 years ago in reply to Anonymous
    I live in the TWC Greensboro, NC district, and I did write to the NC Atty General to complain about their anti-competitive usage caps. Their response? A canned "explanation" from a TWC site, basically telling me that I did not understand what was going on.A government department created to look after my best interests and all I get from them is the company's BS. How about that?
    Anonymous 2 years ago
    Several years ago... Time Warner was diligently working to roll out Road Runner cable Internet in Lincoln, NE. They had a deployment window of 10 months or so and were lighting up neighborhoods as they completed installation of infrastructure. In the months leading up to this point, the TW execs stooped low enough to team up with Alltel execs whom then lobbied the state legislature to pass a law to prevent municipalities (city governments and city/state owned organizations) from offering ISP services. The threat was the public/city owned power company, Lincoln Electric Systems. Through the years, as LES has upgraded their power infrastructure, they ran fiber. Lincoln, NE has the most complete fiber mesh network of any city in the country, however most of it's dark fiber. At one point 10 years ago, we thought we'd have fiber to our homes. Silly us, all of a sudden Time Warner and Alltel came with gus a blazen with all this FUD about how our nationally low power bills would go sky high. They lobbied the state legislature, and laws were passed. In response to the higher bill FUD, the elderly quickly voted the law in.We are now left with dying rural small towns who still have dialup, 33.6k dialup.. Alltel never updated their equipment. Towns like the one I grew up in which are plagued by abandoned houses. As the elderly die, so does the town. Topic of discussion is always there about how the young people move to the big towns/cities. I am an IT Manager and fall off the grid when I visit my mother. We now have a non-profit organization which is trying to overturn this legislation.
    Anonymous 2 years ago in reply to Anonymous
    I also live in Lincoln NE, and I'd love to know who this non-profit is as I'd love to get involved. It's utterly ridiculous that we have 1 cable company. Sure, we have other options for internet...but they either use TWC's lines, or they use crappy DSL. DSL hasn't been a viable option since cable came about. I'm hoping Verizon can bring FIOS since they have a nice call center here now.

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