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Home Communications Policy

BellSouth Plays Hardball to Spite its Face

by Dana Blankenhorn
July 11, 2006
in Communications Policy, Current Affairs, economy, investment, politics, regulation, VOIP
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Bellsouth_logo_1
BellSouth
, soon to become part of AT&T, is starting to play a peculiar kind of hardball with Georgia home developers.

The Atlanta Journal-Constitution reports the company is telling them that if they dare sign a deal with another communications company (like cable) to provide services in their development, then BellSouth will never, ever, ever "provision" that neighborhood with phone lines.

According to the paper, developers are taking this nonsense seriously.

When
we opened our sales center, the carrier we chose had not yet installed
lines," said Rick Mildner, chief operating officer for the developer (a project called Tributary at New Manchester)

"Even though the BellSouth line went right by, they declined to provide
service. When I called, they basically said, ‘Well, sue us.’ "

Does this matter? Very much. You’ve heard of taxation without representation? How about taxation without service?

Ted_stevens_2
If a phone company is unable to accept the "universal service"
obligations written into the law, how dare they accept Universal Service
Funds! If you’re not willing to be the "Carrier of Last Resort," then
let others in on that pie. There are certainly many carriers who would
be happy for the subsidy.

Here’s the irony. This is happening just a month after the FCC ruled that USF taxes
must increase, and that Bell competitors offering Voice Over Internet
Protocol (VOIP)
services must pay into the fund. Further extensions and expansions of this tax, which have only benefitted the Bells, are in the works. And the current bill before the Senate would forbid municipalities from competing in the network business.
 

What is idiotic is that no one connects the dots. End the USF, now.
The Bells aren’t willing to agree to the deal under which that tax is
imposed, so they should not be allowed the benefits.

Think about it. This is what Ted Stevens wants to create. An unregulated monopoly for local Internet service, no choice for consumers, and taxes paid to the monopolist without the consequent responsibility to spend the money.

This is classic fascism. Ted Stevens, elected as a conservative 34 years ago, has morphed into a classic fascist.

Pretty amazing.

Tags: Communications Lawcommunications politicsfascismInternet politicsRepublican fascismTed StevensUniversal Service
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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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Comments 5

  1. Jack Thompson says:
    19 years ago

    Unfortunatedly, the real problem with the Baby Bells and our Government, is that there is NO recognized “Public Network visionary” (political or corporate) amongst them to lead us out of our current industrial/economic chaos and to the Next Generations’ NII FTTH Promiseland…as such great Americans as Theodore Vail, David Sarnoff, Edison, Bell, Westinghouse, Watson, and others did for our generation.
    Know any potential candidates?

    Reply
  2. Jack Thompson says:
    19 years ago

    Unfortunatedly, the real problem with the Baby Bells and our Government, is that there is NO recognized “Public Network visionary” (political or corporate) amongst them to lead us out of our current industrial/economic chaos and to the Next Generations’ NII FTTH Promiseland…as such great Americans as Theodore Vail, David Sarnoff, Edison, Bell, Westinghouse, Watson, and others did for our generation.
    Know any potential candidates?

    Reply
  3. Jesse Kopelman says:
    19 years ago

    Bellsouth is going to get burnt here. They are really jumping the gun, considering that legally they are currently the carrier of last resort in these areas. People who they refuse to serve don’t have to sue them, they just have to contact the FCC. The FCC will be more than happy to fine them (their incestuous relationship does not prevent rough housing). This is clearly the case of a regional sales VP getting cocky and when corporate finds out he is going to be gone.

    Reply
  4. Jesse Kopelman says:
    19 years ago

    Bellsouth is going to get burnt here. They are really jumping the gun, considering that legally they are currently the carrier of last resort in these areas. People who they refuse to serve don’t have to sue them, they just have to contact the FCC. The FCC will be more than happy to fine them (their incestuous relationship does not prevent rough housing). This is clearly the case of a regional sales VP getting cocky and when corporate finds out he is going to be gone.

    Reply
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