[antidote] Re: Yet another change of heart: Powell Opposes Internet Phone Regulation

  • From: Chuck Sherwood <chuck.sherwood@xxxxxxxxxxx>
  • To: antidote@xxxxxxxxxxxxx
  • Date: Thu, 04 Dec 2003 17:08:12 -0500

To All:  Not sure where Dan got the 10% number since the '84 Cable Act limits 
franchisee fees to 5% of gross revenue.  Granted they do pay other small fees 
to states and the FCC but all of these fees are the cost of doing business.  
Regardless of
the fees that are paid to Local Franchising Authorities, the cablecos make 
profits that make the telcos drool.  Now regarding content, the programming 
services pay for carriage on cablesystems just like shelf space in the 
supermarket and then they
give the operators 2 minutes out of every hour on every satellite service to 
sell as local avails.  And the cablecos get a percentage of every sale on the 
home shopping channels.  One other thing the LFAs lost big time when the FCC 
reclassified
cable modem services in March and the big fight over S. 150 was an end run that 
would have eliminated all fees when as we move toward VoIP and IPTV.

Chuck Sherwood
Community Media Visioning Partners
(508) 385-3808 (voice)

Joshua.Barrett@xxxxxxx wrote:

> MSOs pay the cities taxes, franchise fees, and right of way fees. They =
> also pay county taxes.
> Another huge expense is pole permits fees. We have to pay the electric =
> company and or phone company
> a monthly rate per pole to attach cable and fiber. Some fees are based =
> on the total number of subscribers and some are based on homes passed. =
> MSOs also have to provide cable in the classroom - one video and one =
> data outlet for school libraries.
>
> The MSOs only own the content that they produce. (local content) The =
> programmers distribute their content=20
> via satellite to cable headends. We then distribute the content to the =
> cable subscribers)
>
> http://www.makethemplayfair.com/
>
> http://www.cox.com/facts
>
> The biggest selling point we have is that we provide more good jobs, =
> local investment, and local content than the satellite people. If the =
> ILEC started selling video via phone lines they might not be able to get =
> a franchise from the city.
>
> Disclaimer - This is my personal opinion only.=20
>
> Josh Barrett
> Voice / Data Sales Engineer
> Cox Business Services
> Tulsa, OK
> Desk: (918) 669-4893
>
>   =20
>
> -----Original Message-----
> From: Robert Lee [mailto:robertslee@xxxxxxxxxxx]
> Sent: Thursday, December 04, 2003 2:39 PM
> To: antidote@xxxxxxxxxxxxx
> Subject: [antidote] Re: Yet another change of heart: Powell Opposes
> Internet Phone Regulation
>
> Dan,
>
> Very interesting.  I had no clue they paid 10% of revenues.  I feel like =
> =3D
> an
> idiot.  That is an enormous amount. What do they get for that?  Do the
> municipalities maintain the lines, etc?
>
> If the Bells are going to supply video over the PSTN how will they wind =
> =3D
> up
> supplying the content?  For example, will they be able to get ESPN?  Are
> there exclusive deals with arms length partners of the cable companies =
> =3D
> or is
> much of the content owned by cable companies and thus not available to =
> =3D
> the
> PSTN?  Seems like that would become a very large lever to be plied.
>
> Seems to me the cable companies have the better part of an unregulated
> monopoly and so my question remains:  How can the "government" regulate =
> =3D
> one
> and not the other, especially as the offerings converge?
>
> Bob
>
> Robert Lee
>
> -----Original Message-----
> From: antidote-bounce@xxxxxxxxxxxxx =3D
> [mailto:antidote-bounce@xxxxxxxxxxxxx]
> On Behalf Of Daniel Berninger
> Sent: Thursday, December 04, 2003 12:39 PM
> To: antidote@xxxxxxxxxxxxx
> Subject: [antidote] Re: Yet another change of heart: Powell Opposes =3D
> Internet
> Phone Regulation
>
> Bell envy of the cable co's represents yet another smoke screen.  Keep =
> =3D
> in
> mind the cable co's pay franchise fees of various sorts to the local
> governments on the order of 10% of revenues.   Local governments hold
> renewal of the franchises as a stick against the cable co's, although =
> =3D
> the
> normal sorts of corruption tends to limit the threat.
>
> Content represents the number one cost for cable co's.  The Bells have =
> =3D
> no
> content costs.
>
> The cable co's understand how to sustain monopolies, but the notion of =
> =3D
> cable
> co having a better regulatory status than the Bellco's is false.
>
> If the Bells were indeed offered a chance to switch regulatory regimes =
> =3D
> with
> the Cable co's , I don't think you would get any takers.
>
> The game here on both sides is the pursuit of unregulated =3D
> monopoly....not
> "regulatory parity".
>
> Dan
> ----- Original Message -----
> From: "Robert Lee" <robertslee@xxxxxxxxxxx>
> To: <antidote@xxxxxxxxxxxxx>
> Sent: Thursday, December 04, 2003 2:49 PM
> Subject: [antidote] Re: Yet another change of heart: Powell Opposes =3D
> Internet
> Phone Regulation
>
> >
> <snip>
> > There is one terribly honest point the Bells make.  Why the hell =3D
> should =3D3D
> > they
> > be pulled apart and eaten while the cable companies are not?  Before =
> =3D
> the
> > actual history was explained to me by George Hawley I thought the =3D
> cable
> > companies had built their networks with no government protection.  Boy =
> =3D
> =3D3D
> > did
> > he open my eyes. Further, I saw in Philly what happened when RCN tried =
> =3D
> =3D3D
> > to
> > run a second cable network.  The city stopped them.
> >
> >
> >
> > Robert Lee
> >
> >
>
> ________________________________________________________
> The antidote list discussion covers issues related to getting beyond
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> =3D
> in
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> ________________________________________________________
> The antidote list discussion covers issues related to getting beyond =
> monopoly in telecom.  Unsubscribe by sending message with 'unsubscribe' =
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>
> ________________________________________________________
> The antidote list discussion covers issues related to getting beyond monopoly 
> in telecom.  Unsubscribe by sending message with 'unsubscribe' in the Subject 
> field to antidote-request@xxxxxxxxxxxxx or via web at 
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