Lobbying Prowess Earns AT&T Millions


I've been critical of the Express-News on a few occasions, especially their coverage of AT&T. But today I'm doing nothing but heaping praise on the paper. This article, written by Sanford Nowlin, documents the massive amounts of money AT&T poured into our state capital, under the guise of free-market competition, so that it could raise local telephone rates. (It also wants to create an internet environment where VOIP isn't nearly as cost effective as it already is, proving, like all emerging monopolies that it doesn't like competition--but that's another story.)

The Express-News deserves praise for this work of investigative journalism. Nice to see the hometown paper do good. I hope it follows up with more on AT&T (headquartered in San Antonio) and the uncomfortable but emerging pattern of bullying by the company. (That's what monopolies do.)

The downside is that AT&T won its fight and is already raising local rates:

In March, the company said that 1.4 million Texans' monthly phone bills could rise an average of $2 as a result of the bill's price deregulation. The company is boosting basic rates in many markets for the first time in 22 years to nudge more customers into buying a package of services.

By its own count, AT&T stands to collect some $2.8 million a month in additional revenues.

Looks like Ma Bell got its money's worth from the lobbyists, after two months it will recoup all of its expenses. Sounds like a racket to me.

I'll be on the radio between 9-10 central tonight discussing this and net neutrality with Sanford Nowlin (livestream here).


Sean Paul Kelley April 13, 2006 - 4:12pm
( categories: Net Neutrality Diary )

So ironic, Ma Bell was broken up for these practices just 20 years ago.

Bucksouth April 13, 2006 - 10:13pm

"Today democracy is a facade of plutocracy.

Because the peoples will not tolerate naked plutocracy, power is nominally turned over to them, while real power rests in the hands of the plutocrats. In democracies, whether republican or monarchical, the statesmen are marionettes, and the capitalists are the wire pullers: they dictate the political guidelines, they control the voters by buying public opinion, through business and social connections [they control] higher government officials ...

The plutocracy of today is more powerful than the aristocracy of the past, because nothing stands above it except the state, which is its tool and helper.":
Because the peoples will not tolerate naked plutocracy, power is nominally turned over to them, while real power rests in the hands of the plutocrats. In democracies, whether republican or monarchical, the statesmen are marionettes, and the capitalists are the wire pullers: they dictate the political guidelines, they control the voters by buying public opinion, through business and social connections [they control] higher government officials ...

The plutocracy of today is more powerful than the aristocracy of the past, because nothing stands above it except the state, which is its tool and helper.":

Bucksouth April 13, 2006 - 10:14pm

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