PolicyGuy

Monday, October 31, 2005


Cities to Cable / Phone Companies: Here's Our Wish List. Please Comply.
Utility companies must secure the permission of local governments to run wires. And the local treasury is interested in more than simply imposing a tax these days.

The Wall Street Journal (link for subscribers) notes that many cities are now creating wish lists. In Tampa, for example, Verizon wanted to get into the TV business by sending signals over its phone lines.

The response?

"City officials presented them with a $13 million wish list, including money for an emergency communications network, digital editing equipment and video cameras to film a math-tutoring program for kids."

Other requests are being made across the country:

"Holliston, Mass., is seeking free television for every house of worship and a 10% video discount for all senior citizens. Others want high-speed Internet for sewage facilities and junk yards, flower baskets for light poles, cameras mounted on stop lights and Internet connections for poor elementary students."

The rationale for these demands: the companies are using public property. Says one attorney hired by Tampa: "You've got a very special privilege using public property for your network. There ought to be a substantial benefit to the tax-paying public."

Benefit? One would think that increased choice and competition in telephony and information services would be a substantial benefit.

No wonder why SBC and Verizon are lobbying state lawmakers across the country in hopes of having to secure the approval of thousands of local officials.

"Justice Louis D. Brandeis'?s metaphor of the states as "laboratories" for policy experiments ... had almost nothing to do with federalism and everything to do with his commitment to scientific socialism. .... To this day, it continues to inhibit a truly experimental, federalist politics." -- Michael S. Greve

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