WBS: “Victory in Lafayette! Victory for Consumer Choice!”

What’s Being Said (WBS) Dept.

Sasha Meinrath runs an influential blog and muni mesh wireless project back in my old stomping grounds of Champaign-Urbana. He sends congratulations to Lafayette and does a short analysis. A teaser:

More importantly, grassroots organizing seems to have innoculated the local community against the worst of the Fear, Uncertainty, and Doubt that BellSouth and Cox were engaging in. Overall, and even with massive amounts of money being poured into FUD, the citizens of Lafayette voted pro-muni is substantial numbers.

Go by and visit; there’s lots of interesting stuff there.

Municipal Campaign Strategy; Learning from Lafayette

So what did we all learn from the battle of Lafayette? I’ve been asked recently and have been thinking about it some…What follows is a first draft which focuses pretty much on the active strategies of the two sides as I see it. —It’s about what they tried to accomplish and where they wanted the conversation to go. This ignores some interesting larger factors (like trust in the mayor, or the relaxed southern Lousiana attitude toward government, or Lafayette’s peculiar ways of organizing influence, for instance) that could be considered important but background factors. It also mostly ignores the tactical questions–how the strategies were enacted–that are some of the more interesting things to come out of this fight. Instead this is a more birds-eye view of what, it seems to me, both sides might have learned from Lafayette’s fight for fiber.

First off, it’s pretty apparent that the incumbents don’t have much new up their sleeves. The campaign they waged here mirrored campaigns they’ve waged in the past. We didn’t see the as dramatic a finish as we saw in the Tri-Cities but that may well have been because the battle was already lost for BellSouth and Cox before the end arrived. But that doesn’t mean that their basic idea about what makes for an effective campaign has changed: the basic strategy of sowing fear, uncertainty, and doubt seems pretty constant. The tactics seemed to involve a lot of replays as well…Push polls were used here, albeit pretty counter effectively. We got two last minute overexcited direct mail focusing on false claims about taxes, the repeatedly disproven idea that all municipal broadband (or even most) is failing, and silliness about the debt families are supposedly taken. Too, as in the Tri-Cities, an editorial writer who played a prominent role in the opposition was taken to task for unseemly involvement with the incumbents or their allies. The tactics were mostly retreads; what was different was that the predictable campaign was not fronted entirely by the incumbents themselves but, especially in the last days by their allies at Fiber 411.

One of the things the incumbents learned here was that long campaigns are bad for them. Given time, and an aggressive willingness to fight back, lies can be disproved, push polls turned to outrage, and promoting fear and insulting the intelligence of the locals begins to sour any possible relationship with the community. In Lafayette the fight went on for too long. The incumbents had to trot out their best weapons too early and pro-fiber partisans were able to correctly label them as FUD and drive home the message that the incumbents were not being truthful—a message that inoculated the public against further last minute lies.

Unfortunately, I think the incumbents also learned that, saved to the last minute, and promoted through a local proxy, their FUD (fear, uncertainty, and doubt) approach can still be effective. I agree with Don’s analysis that the last minute mailers, the full page ads that simply reprinted a (non)local editorialist’s massively inaccurate take and automated phone calling about a new fantasy “debt” issue were effective. They were simply not effective enough. The local pro-fiber groups kept up a dogged insistence, even during the incumbents’ quietest moments, that the incumbents and their allies were not truthful. Radio time remained filled with a recut version of the push poll and Lafayette Coming Together (LCT) was relentless in pushing the issue. LCG and LUS, while toning down this message near the end and moving it away from the Terry and Joey, never fully abandoned it.

What the pro-municipal fiber forces learned was probably more valuable: that they can win. The overwhelming economic power of the incumbents can be blunted. Their willingness to leave accuracy and truthfulness aside in the pursuit of their own interests can be turned against them. What it takes is something that most municipal officials will not have the stomach for: a full throated attack on some of the most powerful corporations in their city. Telephone corporations have a long history of being the most “generous” investors in state election campaigns and the most powerful lobbying force in state legislatures. Cable companies control what politicians understand to be the most powerful media in town. Lafayette was willing to fight with a strong local and populist message that clearly labeled its opposition as “greedy” “out-of-state” “monopolies.” The spectacle of our Mayor and the head of the utility system “standing up” for Lafayette in a press conference after every bit of misinformation spread by the incumbents and being uncompromising in calling them on each and every false claims was crucial to the campaign. Driving home the message that the incumbents self-interest and greed was driving this process was invaluable in resisting the final onslaught.

There is little doubt that Lafayette had advantages that might not be available in all locales. The bravery of the leadership and its willingness to call a monopoly, a monopoly and greed, greed has already been noted and was tremendously important. There was also a determined, deliberately broad-based coalition of citizens that made it hard to paint the project as one fostered by wealthy technocrats. The coalition group, Lafayette Coming Together, was also quite sophisticated about the use of both old and new media. But the greatest advantage was a pride of place born out of a realistic belief that the region, and Lafayette as the heart of that region, is unique and not subject to rules imposed on us by outsiders. It mixture of cultures, its cultural identities, and the ways the people have found to sustain their cultures make it very difficult for outsiders to successfully come in and infer that the locals are incompetent or successfully introduce effective divisive tactics. (One of the more despicable strategies, used all the way through and culminating in simple lies on Black radio near the end, was to try and split the Creole and black communities away from the rest of the community by using historical resentments which had nothing to do with the issue at hand. Without the aid of community leaders this attempt did not take hold. But the attempt is destined to be one of the longest remembered stains on the campaign of the incumbents and their allies.) Most communities have never had to develop that sort of resilience in the face of outside disapproval but the communities of Acadiana are very good at dismissing outsiders.

Other considerations that helped support a victory in Lafayette appear to be a result of market and national policy worries of the incumbents. Fights like the one in the Tri-Cities can be considered Pyrrych victories—the cost was high, not necessarily in terms of money, but in terms of their reputation both locally and nationally. The cable and telephone companies simply are regional monopolies in their core business and maintaining a favorable regulatory relations at the state level and franchise agreements at the local level depend upon their being perceived as good, or at least benign, local citizens. It will surely take a decade or more to regain that status in the Tri-Cities; even voters who succumbed to the arguments of the incumbents could not help but notice the fear-based tactics that were used to bring them along. There was no large federal issue ongoing at the time of the fight in Illinois. But major initiatives of both the Cable and the Phone companies are before statehouses and more importantly, the Congress. The centrally important 1996 telecom act is up for revision this legislative season, in but one example. An ugly, high-profile attack on Lafayette when the defenders were willing to fight back by identifying the incumbent corporations as “greedy monopolists” may well have been too much to stomach for those at corporate central who felt they had bigger fish to fry and to much to lose to risk that sort of battle in a single small city.

Finally there is the basic market motivation: too much bad behavior damages the bottom line–if you lose. Surely BellSouth and Cox had done their own polling and could read the writing on the wall as well as anyone. The referendum was going to succeed and p0lling no doubt showed that the first reaction of the population to a new round of misinformation would turn more people against them than it gained. If there was any doubt about that the swift and overwhelmingly hostile reaction to the second push poll this summer proved the point that the usual incumbent tactics had become counter-productive. The hard truth was that BellSouth and Cox still had to compete in Lafayette and a loss in a full scale assault would have immediately pushed the likely “take rate” among voters past 5o% percent if corporate behavior turned a “Yes” vote into a vote against Cox and BellSouth. Working through proxies and saving the mail pieces and scare phoning until the end when they could not be answered might well have been all that can be done without damaging their market position by turning the referendum into a marketing tool for LUS.

Lafayette’s battle deserves, I believe, to be seen as one model for regaining local control of crucial monopoly infrastructure. The underlying populist message of local self-determination and legitimate anger toward regional monopolies like BellSouth and Cox was what drove the winning argument in Lafayette. People saw nothing wrong with building for themselves a network that the incumbents refused to build for them. Similarly, people do understand that these companies are monopolies whose bottom line has nothing to do with what is best for the communities across the country in which they reside. That is the core upon which electoral success was built. Lafayettes’ leadership, her aware citizens’ group, a committed ‘old Lafayette’ leadership, and the way her cultural distinctiveness played out made the message relatively easy to develop and denied the opposition virtually all local assets. Other communities might not share those particular advantages but the anti-incumbent message that can win has now been established and future communities can sharpen the message and develop their own resources.

Lafayette can be proud to have developed a winning model and strategy—not without help of course, but with plenty of verve. It will be up to our successors to sharpen the tool and make it more generally useful.

Reviewing the Recap

Kevin Blanchard had an analysis piece on the fiber-optic referendum that’s worth noting if you missed it. It loosely recaps the campaign, focusing on the last months and on incomplete filings from the state ethics commission and reports from the groups involved.

Though the full story of the last days has yet to be told, the misinformation campaign at the end was very real and the direct mail pieces–something I covered in an earlier post during the heat of the campaign was profoundly and intentionally misleading. The mention of them here, in a retrospective analysis piece is the first time, to my knowledge that they have been mentioned in the press. Blanchard notes that the full force of the disinformation campaign that was seen in the Tri-Cities, for instance, did not fall on Lafayette:

While LUS officials expressed fear early in the campaign that their future competitors, BellSouth and Cox Communications, would bombard the electorate with negative advertising — something that’s happened when other communities have held similar votes — that never happened in Lafayette

While there is truth in this broad claim it tends to focus solely on quantity and to pass on the meaning—and the actual effectiveness of what did happen. It isn’t that the disinformation campaign didn’t happen; it did. It isn’t that the campaign waged didn’t fit the pattern of the campaign in other places—because it did. It differed only in the overall size and intensity, how early it started, and—most visibly—the mixed sponsorship. Just how closely the disinformation campaign followed the pattern laid out in other places is well worth noticing. In the Tri-cities, for instance, almost cartoonish mass mailer pieces that made unsubstantiated (because untrue) claims about taxes, debt, and inevitable failure. In Lafayette last minute over-excited mailers made unsubstantiated (because untrue) claims about taxes, debt, and inevitable failure. In the Tri-Cities push polling was a feature of the campaign. You will recall the same about Lafayette. Similarly, the condemnation of a columnist in one of the local newspapers received prominent advertising play, especially when the columnist appeared to have ties to the opposition that weren’t publicly acknowledged. In the Tri-Cities the columnist picked up contract work. In Lafayette he wrote for the Heartland Institute and allowed the opposition he endorsed to help author his work. In Lafayette his final editorial was transmuted into a full page ad for the opposition.

Blanchard notices this ad in a pointed way, saying:

BellSouth ran only one ad, reprinting a column written by Times of Acadiana Business Manager Eric Benjamin that warned voters about the dangers of LUS’ plan. The column was published on the Wednesday before the election. The full-page ad appeared Friday.

The point, as I take it, is that the ad space was bought before the editorial appeared. BellSouth knew that a fresh, relatively unscathed editorial repeating its position would be available to insert into the traditional media silence before an election. (The previous Benjamin editorial which might have been more reasonably timed for inclusion had been the subject of brutal critique by the Independent on the grounds that an anti-fiber editorial co-authored by the anti-fiber opposition was, well, a wee bit improper. This later tidbit brings up new ethical questions about collusion.) It’s hard to avoid the conclusion that BellSouth knew the editorial was coming and knew that it was something to which they could happily devote a full page of advertising. Twice, on both Friday and Saturday.

That traditional media pre-election silence, which both papers observed, meant that no questions were raised about the placement of this ad and, much more seriously, that the two last minute misinformation flyers and the automated phone calling went completely unreported. The tradition exists, no doubt, to prevent unfair last minute accusations from being repeated by the media. But it serves equally to shield last minute deceptions and distortion from any examination. It is clear that development of targeted direct mail and market segmented automated calling regimes into powerful tools that can put different messages into specific populations in a way that is invisible to the rest of voters changes the equasion. The policy of discreet silence may now serve more to deny the public crucial information about how the campaign is being run in the crucial last 48 hours than it does to shield them from unscrupulous accusations being repeated by the media. An article like this one, one that emphasizes the incumbents’ quietness without dealing with cacophony of its allies exacerbates the problem. Someone reading our local print media would have to come away with the impression that nothing much, and certainly nothing unprincipled happened in those hours.

But that impression would be wrong.

“It’s not business friendly enough”

I was in New Orleans this weekend and ran across a cartoon in Gambit (a local alternative weekly newspaper), “Suspect Devices,” whose acid commentary I thought might interest people in Lafayette. The third panel puts BellSouth’s poor-mouthing in context. Just click on the image to get a large, readable version of the ‘toon.

Greg Peters is more familiar to us here in Lafayette through his popular political cartoon in the Independent, Snake Oil, but his other series is in the same vein and equally interesting. As a bit of lagniappe, I offer up a link to another thought-provoking bit of commentary on the gret state’s political shenanigans: Had enough yet? They’ve given up all pretense to being on your side.

BayouBuzz Interview: The Entertainment Industry

BayouBuzz interviews Mark Smith, the Enterntainment Industry Director for the state. He seems well aware of Lafayette’s potential. From the first half of the interview:

Another important incentive that was passed was the digital media incentive. And, obviously, it’s more than just what is an incentive about video games, but I�m just gonna, at least focus on the video game aspect of it because it really interrelates very well with our film incentive and it’s a great potential for Louisiana. We have curriculums that have been developed in our Universities and in specifically, UL in Lafayette, and it’s an opportunity for Louisiana to keep it’s brain trust and it’s creative class here, in the state and create some new jobs and some new companies, i.e., a cottage industry that is so important if we’re going to really compete in the 21st century.

From the second half:

The other thing regarding digital media and specifically video games, well, obviously that´s gonna require more advanced skills and knowledge, and obviously, we have Universities that are really spear heading that, but specifically one that really is really putting a lot of emphasis and really going after it with their curriculum is the University of Louisiana at Lafayette. So, that’s another area you want to take a look at to see if that’s something you want to do. But, again, please visit our website to learn more about the starting point. But, again, the opportunity is here, but you have to have the patience and the wherewithal to really invest in it, because, again, you are investing in your future.

It’s good to know that someone in Baton Rouge notices.

WBS: “Lafayette zegt ja!”

What’s Being Said (WBS) Dept.

Folks in Amsterdam have show an interest in Lafayette’s travails. Partly out of an innate Dutch sympathy and partly because they have similar issues with their incumbent Telephone and Cable providers. (I received a very nice letter of thanks for the FUD article a few months back, saying that a group in Holland was using the argument to good effect.)

In an article titled: “Lafayette zegt ja!” they celebrate our victory.

The Bablefish author’s translation:

Lafayette votes yes!

Yesterday the referendum concerning glass fibre took place in Lafayette (Lousiana), where we wrote earlier already concerning. Because this was the only subject that it was presented to the citizens, one thought in advance that no longer than 15 up to 20 per cent of the votes cast would reach. It became a rise of 30 per cent, of which in spite of hard anti-campagne of the local telecom – and cable companies 62 per cent yes said. Lafayette get glass fibre, now we still!

“Lafayette says yes!

Yesterday, the referendum on fiber, we wrote about earlier, took place in Lafayette (Louisiana). Since it was the only subject that was being presented to the people, a turnout of no more than 15 to 20 percent was anticipated. The actual turnout was 30 percent, of which 62 percent said yes, in spite of the forceful anti-campaign by the local telecom and cable companies. Lafayette will get it’s fiber, now it is our turn!”

(I’m pretty sure they’re happy for us. But I would be happy to post a more adequate translation.) Miss G, the author of the original posting so mangled by Bable fish has provided the much clarified translation you see above in the comments. Thank YOU!

Another, earlier post, Ondertussen, in Lafayette…,” from the same site gives some background on their interest. Again, the Bablefish translation: (My picking apart indicates that KPN is their Cox; UPC is their BellSouth; and GEB is their LUS. You’re own your own for the rest of it. )

In the meantime, in Lafayette…

We are not only and also not unique, now appears: -) In Lafayette (Louisiana USAS, Paris) they do not want also already glass fibre (fiber) and are them also (already some time ago) started a site. The local KPN and UPC refuse, thus it itself does the municipality by means of their GEB. Large debate, to in the national media. On 16 July will them in Lafayette in a referendum (that to know we) vote or it continues. Crazy enough its republicans and democrats it a time once: everyone wants fiber! Everyone? No, the cable society of course not. And still a number of people which sees their money disappearing. Verify here it unwieldly (that surprisingly charges slowly) of the antagonists, who are paid by the local UPC.

“In the meantime, in Lafayette…

We are not alone and not unique, as we just discovered 😉 In Lafayette (Louisiana USA, not Paris) they want fiber as well and they launched a site about it quite some time ago. The local KPN (the Dutch telecom company) and UPC (local cable company) refuse, so the community will do it themselves, in cooperation with their GEB (our local power company). There is quite a debate going on, with attention in national media as well.

On Juli 16 a referendum will be held in Lafayette (and don’t we know all about referenda*) about the future of the project. It’s quite remarkable that for once republicans and democrats agree: they all want fiber!

All of them? No, as can be expected the cable company is against it. As well as a couple of other people who see their money disapear. Check the extremely slow loading blog by the opponents, who are supported by the local UPC.”

* Recently a national referendum was held here on the newly proposed European constitution. As most past referenda in Amsterdam, this one was rejected by the people as well. Most people who were in favour, blamed the lousy campaign by the Dutch governement.

They, apparently, are not too happy with their incumbents either.

Update: 9:20; Translations by the author. Thank you Miss G.!

WBS: “Lafayette Louisiana City Vote Could Reshape Telecom, Media and Internet Business”

What’s Being Said (WBS) Dept.

This early reaction BayouBuzz piece is worth a gander in the “What’s being said department” if you’ve not seen it already.

Sabludowsky gets it right:

Lafayette, Louisiana–In one of the most critical votes by a city against the traditional way for its citizens to obtain telecom services and media services that could have ripple effects throughout the U.S., City of Lafayette, Lafayette Louisiana voters gave the Lafayette project thumbs up to a proposal that will allow the municipality of compete with traditional telecommunications and media conduits.

Lafayette Utilities Director Terry Huval echoed the mayor but focused upon opponents to the project. “Today, we did what our predecessors did 109 years ago — we took our future into our own hands, said Huval. “Also BellSouth and Cox wanted the people of Lafayette to speak, and now the people of Lafayette have spoken loud and clear. Now it´s time for BellSouth and Cox to accept what the people have said and stop throwing hurdles in our way.”

Cities, municipalities, telecom companies and even media companies have been waiting for this vote since the outcome could significantly change the balance of power in those areas and the business models in this 21st century.

YES. We can show the way… if others have the sense to follow.

Federal: BellSouth’s 80% and Federal Law

Here’s a little present that the feds are considering giving the Baby Bells like BellSouth: the right to compete only in the most lucrative parts of town. While the National Journal’s story mentions only Verizon and SBC as telephone corporations planning to offer video services, BellSouth is often noted as the third Bell whose public plans include the capacity to offer such services.

Local governments traditionally have required, through their franchise agreements with cable companies, “universal service”–the idea that cable would be available to all the citizens of the city or town granting the franchise. This was a local imitation of the federal rule that phone service had to be “universal.” It’s an idea that began at the federal level and one that has been a huge benefit to poor communities and rural ones. If the new suggestions are made law, the idea will also end as a consequence of federal action. The feds call the part of proposed new law that sets ground rues for who is to be served (and other things as well) “build-out rules,” and here is how the NR discusses it:

Build-out requirements generally involve a mandate that service be available to all residents in a given service area. Both SBC Communications and Verizon Communications — which are deploying subscription television services that will compete with cable — argue that build-out restrictions would be unfair, on the grounds that their efforts will foster competition and therefore benefit consumers.

This is a truly twisted idea of what “fairness” is. In other areas, like, for instance, Lafayette’s municipal broadband plans, the telephone companies (claim to) believe that fairness has to do with a level playing field where all are treated alike. Here they think that they should be treated differently — that it would be “fair” to treat them differently than cable companies are treated. Convenient. And hypocritical. What they are actually saying is that they want both the economic advantage AND the right to claim some sort of moral high ground. Really, the truth is that what they want is advantage, and the basis for claiming the moral high ground can be whatever sounds good and allows them to claim that advantage.

The advantage, the real advantage sought here, is in the competition with the cable companies. The cable companies with plants already built out according to the old universal rules serve both the most profitable and the least profitable parts of town. The spiffy new phone company tech would compete only in the most lucrative parts of town, taking customers there and only there. It would have the effect of driving the cable companies out of the wealthy areas and leaving them with the least profitable parts of the area. Multiply that by every town in BellSouth’s footprint and imagine the huge amounts of competitive advantage BellSouth gets over its cable competition in the video arena. This, and this almost exclusively, is what is in this proposal for the telephone companies. Advantage over its competitors who have committed to universal service.

In our town not only Cox, but soon LUS also, will be committed to universal provision of services.

All this relates directly to the “offer” BellSouth made to the Lafayette Consolidated Government that revealed their intent to offer “advanced services” to only 80% of Lafayette. (If BellSouth was to serve more, “almost all,” they would ask Lafayette to pony up tax-derived cash or some sort of equivalent pay off.) The speed numbers that that BellSouth mentioned are the speeds at which a minimal form of video services could be offered. If BellSouth wanted to just suggest it would bring in its new cable service it would surely be asked to meet the universal service requirements that Cox has met. But a deal with BellSouth based on that letter to Joey Durel would have been a back-door way to get the city to pay for what the current franchise agreement with Cox effectively mandates in the city: universal service. Sneaky, eh? But the city didn’t bite. Good for them.

Should this idea be approved at the federal level, BellSouth would not have to serve the parts of the city it considered less profitable. And in that situation LCG would have to buy them off if it wanted all its citizens to have access to the same services. Or it could just build its own network, serve all its citizens, and let those guys go their own way.

Thank goodness for LUS.

On the “upside:”

…Boucher has been floating the idea of coupling nationwide franchises for video providers with authority for states and/or local governments to offer low-cost, high-speed Internet services. That puts Boucher at odds with SBC, which has opposed government-sponsored broadband in several states. Verizon has expressed opposition in some areas.

But, as we can plainly see, local utilities will be faced with the same competitive disadvantage if these suggestions go forward as the cable companies. You’ll also notice that Boucher is talking about allowing cities to provide is “internet” services, NOT cable services. And cable service is what will pay for any new build out–the profits to be had there are why the telephone companies are so desperate to get into a lucrative cable market as they struggle to build modern systems. The Bells, under a Boucher regime, will be licensed to poach the most lucrative customers selectively. Preserving municipal rights to serve its citizens as it sees fit should not be bought at the price of universal service or sacrificed to the profit motive of the Telephone Companies.

A Thanks to Our Readers

Thanks readers for your patience. During the run up to the last days of the campaign our work here was spotty at best. But even on days when we posted very little or very late you stayed with us. During the last 2 weeks our “uniques” — the number of different visitors — nearly doubled to just short of 500 a day. That loyalty is appreciated. Thanks, as well, for helping spread the message. Almost daily we get feedback that demonstrates that the readership here has had a critical effect on how the debate shaped up. Without that informed and active body of advocates continually seeding the larger community with solid information and an appropriate wariness of the self-interested claims of the incumbents, the battle Lafayette just won would have been very different.

This site will continue to be around, of course–the story is hardly done and we’ll be eager to watch the project grow and try to bring us all into the conversation about what’s next. The hard work of protecting the gains made here from federal or state intervention needs to be done. And making sure that the implementation of the network keeps the promises we all made to the community during the fight is necessary work as well.

We’re going to put together a “misinformation project” for the more stable, long neglected purely informational side of the site. During the campaign the need for fast reaction led to an emphasis on the blog. We hope to get back to longer-lasting work that has been neglected.

We are also considering a “vignettes project” consisting of photos or very short vignette-like stories (at most a few paragraphs) of events during the campaign. The idea is to put together a mosaic of bits that, taken as a whole, would allow a reader to gain some sense of what it meant to engage in the fight here in Lafayette. If you like the idea let us know… it would only work if a lot of folks decided to contribute.