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Re: “Cue head explosion: More on the broadband bill

Mr. Fain: Your say this "And cities clearly have significant advantages over private companies now when it comes to providing Internet service, or other utilities for that matter."

How exactly is that? TWC is a multi-billion dollar company. It raised all the rates of its subscribers in the Raleigh communities, so it could lower the rates in Wilson. That's cross-subsidy to the nth degree. It can siphon money out of North Carolina with consistently high rate increases and use it to build infrastructure in its California systems. Cities in NC can't and won't do that. When TWC wants to develop a new product, it just loans money to itself. Can cities do that? When TWC buys programming for its cable systems, it gets massive discounts because it buys for 2 million subscribers. Cities of 20,000 households can't do that. When TWC wants to crush its competition, it predatory prices (below cost) and hires a high paid team of lobbyists to push through legislation it writes - Cities clearly can't do that. And when Time Warner Cable tells you cities are failing at municipal broadband and should be stopped, why don't you wonder about that? If it were true, TWC would get all the subscribers from a failed Wilson or Salisbury SO THEY SHOULD NOT CARE. That tells you these systems are successful. These companies don't care about the taxpayer; they care about profit. And these municipal fiber systems have advanced technology that is holding TWC more accountable. The math equation is simple - cheaper to hire a lobbyist and push legislation through that stops competition than upgrade your infrastructure.

Posted by Digdeeper on 03/04/2011 at 6:42 PM

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