Captive Audience: The Telecom Industry and Monopoly Power in the New Gilded Age (62 page)

25.
Report and Order and Further Notice of Proposed Rulemaking, In the Matter of Connect America Fund, a National Broadband Plan for Our Future, Establishing Just and Reasonable Rates for Local Exchange Carriers, et al.
, Federal Communications Commission, WC Docket No. 10-90, GN Docket No. 09-51, WC Docket No. 07-135, et al., November 18, 2011, p. 4, n. 3.

26.
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc. and Deutsche Telekom AG for Consent to Assign or Transfer Control of License and Authorizations
, Federal Communications Commission, WT Docket No. 11-65, April 21, 2011.

27.
Allen Tsai, “Obama to Double Available Wireless Spectrum,”
Mobiledia
, June 28, 2010,
http://www.mobiledia.com/news/71990.html
.

28.
Federal Communications Commission, “National Broadband Plan,” (2010), chaps. 5–6, available at
http://www.broadband.gov/plan/
.

29.
Ex Parte Submission of the United States Department of Justice, In the Matter of Economic Issues in Broadband Competition: A National Broadband Plan for Our Future
, Federal Communications Commission, GN Docket No. 09-51, January 4, 2010.

30.
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc.

31.
Ben Protess and Michael J. De La Marced, “JPMorgan, the Lender Behind the TMobile Deal,”
New York Times
, March 21, 2011, available at
http://dealbook.nytimes.com/2011/03/21/jpmorgan-the-lender-behind-the-t-mobile-deal/
.

32.
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc.

33.
Why the AT&T-T-Mobile Deal Is Bad for America
(Washington, D.C.: Free Press, March 21, 2011), available at
http://www.freepress.net/files/ATT-TMobile.pdf
.

34.
“TMobile Coverage Map,” TMobile, accessed March 10, 2012,
http://www.t-mobile.com/coverage/pcc.aspx
; “AT&T Wireless Coverage Map,” AT&T, accessed March 10, 2012,
http://www.wireless.att.com/coverageviewer/#?type=voice
.

35.
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc.

36.
“[The] transaction would reduce competition and harm consumers” ( Matthew Spankey, “Sprint Releases Official Statement in Opposition of AT&T/TMobile Merger,” Sprint Nextel, news release, March 28, 2011
http://www.sprintusers.com/sprint-releases-official-statement-in-opposition-of-att-t-mobile-merger/
).

37.
“As recently as last October, Mr. Hesse said the wireless industry is ‘hyper competitive.’ The month prior, his CFO talked about how ‘tough’ retail competition is in the wireless market, citing at least six major competitors. In February of last year, Mr. Hesse said, ‘M&A is absolutely a way to get the growth in the industry, if a particular transaction makes sense for anybody.’ He went on to say, ‘I think consolidation will be healthy for the industry, some consolidation. It is, needless to say, very competitive’” (Jim Cicconi, “AT&T Response to Hesse Remarks,”
AT&T Public Policy
(blog), April 15, 2011,
http://attpublicpolicy.com/government-policy/att-response-to-hesse-remarks/
.

38.
Shayndi Rice and Thomas Catan, “AT&T's Critics On Deal Growing,”
Wall Street Journal
, May 31, 2011.

39.
Communications Workers of America, “TMobile USA and AT&T Merger Means Faster and More Widespread Broadband,” news release, March 20, 2011, available at
http://www.cwa-union.org/news/entry/t-_mobile_usa_and_att_merger_means_faster_and_more_widespread_broadband
.

40.
“As represented in the FCC docket, the proposed merger of AT&T and TMobile has received substantive support from national Hispanic organizations including Hispanic Federation” (“NAACP Endorses AT&T Deal,”
Los Angeles Sentinel
, June 3, 2011, available at
http://www.lasentinel.net/NAACP-endorses-ATT-deal.html
); Jason A. Lorenz, “AT&T, TMobile Merger Can Benefit Latinos,
LatinoLA
, June 14, 2011,
http://latinola.com/story.php?story=9591
.

41.
Edward Wyatt, “AT&T Plans to Woo U.S. and Fight It,”
New York Times
, September 2, 2011.

42.
“We begin by describing the strong competitors that the combined company will continue to face after this transaction is complete. These include not only providers that market service to customers living in most U.S. markets, but also ‘regional’ providers that market only where they operate networks. Again, providers in both categories offer their customers nationwide service plans” (
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc.
).

43.
TMobile, investor conference call, transcript, January 20, 2011) available at
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cts=1331040673578&sqi=2&ved=0CDEQFjAA&url=http%3A%2F%2Fwww.telekom.com%2Fstatic%2F-%2F18868%2F1%2F110126-transcription-inday-si&ei=nhFWT9OyFaH10gGnvf28Cg&usg=AFQjCNGk8RXAWEnaBP9Fab1v8bfjScZRLA&sig2=QS_CDMMarvKtp6_LR-g1jQ
.

44.
John Delaney, “Analysis: AT&T Acquires TMobile US,”
Comms Dealer
, March 21, 2011,
http://www.comms-dealer.com/market-analysis/analysis-att-acquires-t-mobile-us
.

45.
Description of Transaction, Public Interest Showing, and Related Demonstrations, In the Matter of Applications of AT&T Inc.
, 2.

46.
Casey Johnston, “Obama Pitches Plan to Free 500MHz, Raise $28B, and Bring 4G to Everyone,”
Ars Technica
, February 10, 2011,
http://arstechnica.com/tech-policy/news/2011/02/us-government-announces-plan-to-free-up-500-mhz-of-spectrum-implement-4g.ars
.

47.
“The process of revisiting or revising spectrum allocations has historically taken 6–13 years” (Federal Communications Commission, “National Broadband Plan,” 79).

48.
Ibid., 269.

49.
“AT&T is today sitting on more spectrum than any other wireless operator in the top 21 markets in the U.S., and about a third of that spectrum is still being unused,” reported Marguerite Reardon, “Is AT&T a Wireless Spectrum Hog?”
CNET News
, April 29, 2011,
http://news.cnet.com/8301-30686_3-20058494-266.html
.

50.
Wayne Watts, “AT&T Statement on Department of Justice Action,” news release, August 31, 2011.

51.
Stacy Cowley, “AT&T CEO Pay Docked $2 Million for TMobile Debacle,”
CNN Money
, February 22, 2012,
http://money.cnn.com/2012/02/22/technology/att_ceo_pay/index.htm
.

52.
Karl Bode, “The AT&T TMobile Deal Is Officially Dead After Historic Consumer, Industry and Regulatory Opposition,”
DSLReports.com
, December 19, 2011,
http://www.dslreports.com/shownews/The-ATT-TMobile-Deal-Is-Officially-Dead-117504
.

53.
Mike Isaac, “TMobile Users Rejoice at Justice Dept. Blocking AT&T Merger,”
Wired, CNN Tech
, September 1, 2011,
http://www.cnn.com/2011/09/01/tech/mobile/t-mobile-users-rejoice/index.html
.

54.
Anton Troianovski, “AT&T May Try Billing App Makers,”
Wall Street Journal
, February 28, 2012, available at
http://online.wsj.com/article/SB10001424052970204653604577249080966030276.html?mod=googlenews_wsj
.

55.
Colin Weir, “AT&T Mulls Third-Party Billing for Data,”
ETI Views and News
, March, 2012,
http://www.econtech.com/newsletter/march2012/march2012a2.php
.

56.
“U.S. Telecommunications and U.S. Cable and Satellite: Nature vs. Nurture” (Bernstein Research, May 2012), 27.

Chapter 14. The Costly Gift

1.
“Terry Huval F2C Interview,” YouTube video, 00:36, posted by “Fiberevolution,” April 3, 2009,
http://www.youtube.com/watch?v=_bp0nvXxsks
.

2.
Ibid., at 02:22.

3.
Ibid., at 07:38.

4.
Phillip Dampier, “Lafayette Municipal Fiber Provider Filing Complaint Against Cable Co-Op over Access,”
stopthecap.com
, June 14, 2010,
http://stopthecap.com/2010/06/14/lafayette-municipal-fiber-provider-filing-complaint-against-cable-co-op-over-access/
.

5.
Rick Jervis, “Louisiana City Blazes High-Speed Web Trail,”
USA Today
, February 5, 2012,
http://www.usatoday.com/news/nation/story/2012-02-01/broadband-telecom-lafayette/52920278/1
; John, “LUS Fiber Financials Covered in Local
Media (and More),”
Lafayette ProFiber
(blog), August 10, 2011,
http://blog.lafayetteprofiber.com/2011/08/lus-fiber-financials-covered-in-local.html
.

6.
Christopher Mitchell and David Morris, “The Battle Is Raging for Control of the Internet—And Big Corporations May Come Out on the Losing Side,”
AlterNet
, June 21, 2010,
http://www.alternet.org/media/147267/the_battle_is_raging_for_control_of_the_internet_—_and_big_corporations_may_come_out_on_the_losing_side/?page=entire
.

7.
“FTTH Economics,”
Institute for Local Self-Reliance: Community Broadband Networks.
http://www.muninetworks.org/content/successes-and-failures
.

8.
FTTH Council, “Municipal Fiber to the Home Deployments: Next Generation Broadband as a Municipal Utility,”
Institute for Local Self-Reliance: Community Broadband Networks
, April 9, 2008,
http://www.muninetworks.org/reports/municipal-fiber-home-deployments-next-generation-broadband-municipal-utility
.

9.
Mitchell and Morris, “Battle Is Raging for Control of the Internet.”

10.
“Chattanooga Community Fiber Network Profiled on the Southern Way,”
Institute for Local Self-Reliance: Community Broadband Networks
, 03:35, posted by “christopher,” November 29, 2011,
http://www.muninetworks.org/content/chattanooga-community-fiber-network-profiled-southern-way
.

11.
“Knoxville News Station Envious of Chattanooga Fiber Network,”
Institute for Local Self-Reliance: Community Broadband Networks
, 01:30, posted by “christopher,” January 4, 2012,
http://www.muninetworks.org/content/knoxville-news-station-envious-chattanooga-fiber-network
.

12.
Christopher Mitchell, “Tennessee Bill to Encourage Economic Development Killed by Telco Lobbyists,”
Institute for Local Self-Reliance: Community Broadband Networks
, May 3, 2011,
http://www.muninetworks.org/content/tennessee-bill-encourage-economic-development-killed-telco-lobbyists
.

13.
Jonathan Feldman, “Global CIO: What North Carolina's Broadband Battlefield Means to You,”
InformationWeek
, June 2, 2011,
http://www.informationweek.com/news/global-cio/interviews/229900048
.

14.
Joey Mornin, “How Time Warner Cable Is Spending Millions to Fight Municipal Broadband in North Carolina,”
Morninj
(blog), May 10, 2011,
http://www.morninj.com/2011/05/how-time-warner-is-spending-millions-to-fight-municipal-broadband-in-north-carolina/
.

15.
“Community Broadband Preemption Map,”
Institute for Local Self-Reliance: Community Broadband Networks
,
http://www.muninetworks.org/content/community-broadband-preemption-map
.

16.
FTTH Council, “Award Recipients,”
http://www.ftthcouncil.org/en/content/award-recipients
.

17.
Glenn Fleishman, “The Killer App of 1900,”
Publicola
, December 11, 2009,
http://publicola.com/2009/12/11/the-killer-app-of-1900-2/
.

18.
James Baller, “The Essential Role of Consumer-Owned Electric Utilities in Developing the National Information Infrastructure: A Historical Perspective,” paper presented at the American Public Power Association Annual Telecommunications
Conference, Nashville, Tennessee, October 31–November 1, 1994, available at
http://www.baller.com/library-art-history.html
.

19.
Moody's Magazine
, October and November 1906, available at
http://www.baller.com/pdfs/Moody's.pdf
.

20.
Comments of the American Public Power Association, Proposed Rule Registration of Municipal Advisors
, Securities and Exchange Commission, February 22, 2011, available at
http://www.publicpower.org/files/PDFs/SECCommentsS74510MunicialAdvisors02222011.pdf
.