More on the Bonds

The Advocate covers the Fiber To The Home bond presentations in New York this morning. Sounds good! Apparently the visit went well and Durel and Huval returned feeling good about Lafayette’s prospects for a favorable bond rating.

Some of the recent local contretemps were frankly discussed:

Last week, attorneys for the plaintiff in that lawsuit, Elizabeth Naquin, suggested that Lafayette might be subject to further legal action should it proceed in the manner it’s planning to issue and pay back the bonds.

Durel said he thought the timing of that suggestion was an attempt to spook the bond markets into a higher rate.

Ottinger said Lafayette officials discussed with the bond market representatives the possibility — or lack thereof — of another lawsuit stalling the project.

The Louisiana Constitution prohibits further challenges to the ordinance that authorized the bonds to be issued, Ottinger said.

Good. Being upfront about the opposition is the way to go in most cases and I’m sure honesty served them well here. The bond guys have done their homework and asked the next obvious question:

The bond market representatives also wanted to know if LUS was prepared should the existing telecommunications companies in the area start practicing “predatory pricing,” in an effort to undercut the new LUS venture, Durel said.

That is, indeed, the next issue; and that for which the people of Lafayette should prepare. The incumbents tried this in Bristol and it didn’t work. I suspect that the folks in Louisiana will recognize the ploy as easily as did those in Virginia.

It’s all good so far:

“The bond rating agencies and the bond insurers were impressed with the depth of information and analysis we had as well as our passion, and the community’s support, for the project,” Huval said. “We received favorable comments about LUS’ proven track record in managing the deployment of large projects.”

Let’s get on with it!

Lafayette, LA to Wilson, NC: Fight It!

Does this sound familiar?:

Wilson, NC is getting hit with aLocal Government Fair Competition Act” written up by their local incumbents (AT&T and Comcast) that intends to keep the city from expanding its current, successful fiber optic ring to provide its citizens with a little competition to the current phone and cable monopolies and the internet duopoly.

Sounds mighty familiar. That is exactly the title of the bill that has cost the people of Lafayette millions of dollars and which has delayed Lafayette’s fiber-optic project by 3 years. Without this law Lafayette’s citizens would be using their network now; instead we are just starting after a long obstructionist battle waged by the incumbents–all of which was enabled by the “Local Government Fair Competiton Act.”

Lafayette, Louisiana to Wilson, North Carolina: FIGHT IT. No half-a-loaf compromises, no handshakes, no backing off when offered a “grandfathering” clause.

People of Wilson: You cannot expect your opposition to honor any commitment it makes in conferences. They didn’t in Louisiana and you shouldn’t expect it in North Carolina. Without such a law you are free to make your own decisions and take responsibility for them. Such a law gives the incumbents the opening they need to sue you based on a law they have drafted. The incumbents will not hesitate to return to the legislature in the very next year to further “fix” the bill to disadvantage localities. They will use the law to pursue lawsuits that they cannot win. They will use lawsuits to simply delay project and they will use lawsuits to try and pursue interpretations of the law other than those they agreed to in conference. (Things got to such a pass here that even the legislator that skirted the rules to sponsor the bill later complained that the incumbents were suing over things that had been settled in favor of the municipality during compromise discussions!) You DO NOT need the “bigger, smarter guys at the statehouse” to protect you from yourselves. DO NOT buy the line that this sort law “protects the local taxpayer” or that it “levels the playing field.” It intends to shift your control of local resources away from local citizen-owners and to a compliant state house; you can protect yourself quite well without their dubious help, I am sure. It intends to establish rules that would cripple your local utility’s ability to compete; rules that the incumbents would rage against should anyone dare suggest applying such to them.

From the Wilson Daily Times Article:

City of Wilson officials and the North Carolina League of Municipalities are seeking to kill a bill that would place what they say are undue restraints on municipalities establishing “communications services.” Wilson officials expected some legislative opposition when they started planning to provide broadband services to the city.

The bill, called the Local Government Fair Competition Act, places several obstacles in the way of local governments seeking to provide services such as broadband Internet, telephone and cable television. The bill is sponsored by state Reps. Drew Saunders, D-Mecklenburg, Hugh Holliman, D-Davidson, Harold Brubaker, R-Randolph, and Julia Howard, R-Davie. Lawmakers representing Wilson County have not sponsored the bill.

Some of its provisions include requiring two public hearings where the city’s business plan would be available, including cost analysis and four-year projections. Also, a special election would be held to allow citizens to decide if the city should establish any communications service. Such a service would also have to be self-supporting and could not be subsidized by the city’s electric fund.

“There is no good reason for this bill,” said Ellis Hankins, director of the N.C. League of Municipalities.

And

City attorney Jim Cauley said the House bill was written and supported by the telecommunications industry and is “clearly designed to protect their pocketbooks at the expense of the public good.”

“In the interest of corporate protectionism, it will create such a barrier to the construction of municipal broadband infrastructure that many citizens will not have access to high-speed fiber-optic services in the foreseeable future, thereby making our economic development efforts that much more difficult,” Cauley said.

I hope the people of North Carolina will learn from Lafayette’s experience and kill this ugly example of “corporate protectionism.”

Slime: Naquin & Attorneys try to Drive up Bond Costs

Slime. Unprincipled, low-life slime.

That is the mildest and kindest epitaph that I can manage for Elizabeth Naquin, her Plaquimines attorneys and the incumbent corporations who are pretty obviously paying them off. The only possible purpose for stirring things up right now is to drive up the costs of the bonds that are to be marketed in New York next week. And that is plain, flat, wrong.

According to Kevin Blanchard over at the Advocate the attorneys for Naquin (BS/AT&T and/or Cox?) have shot off emails — to the media — threatening to sue Lafayette at some unspecified future moment over the plan to fund the construction of Lafayette’s fiber network. That plan has already been approved by the court of last resort, the Louisiana Supreme Court, and the objections raised have already been dismissed. Further, according to the Louisiana constitution the bond ordinance becomes immune to challenge when it is validated and that immunity extends to:

“the validity of the . . . means provided for the payment of such bonds and the validity of all pledges of revenues and of all covenants and provisions contained in the instrument or proceedings authorizing or providing for the issuance of such bonds, and as to all matters adjudicated and as to all objections presented or which might have been presented in such proceeding, and shall constitute a permanent injunction against the institution by any person of any action or proceeding contesting the validity of the bonds or any other matter adjudicated or which might have been called in question in such proceedings.” [Legal citation from Ottinger’s press release]

That is pretty conclusive. Let us be very plain: No one and no “thing” can challenge a bond once it has been validated and issued. The constitution is clear; no matter how defective a bond ordinance might prove to be, it cannot be changed after it has been validated and sold. The business plan supporting it is incorporated into the ordinance and becomes a contract with the bond holders. NOTHING can be done to change it. (Even if the court hadn’t already ruled on the question.)

So this is clearly FUD–an attempt to sow Fear, Uncertainty, and Doubt. It cannot be a valid legal objection and would only result in ridicule if actually brought before a court.

The real question is: WHO are they trying to scare now? And the answer is plain: the men who will sit across the table from Lafayette’s representatives setting up the bond sale. They would like to make those men fearful, uncertain, and doubtful. They hope those men will condition the bonds in such a way as to force millions more in interest costs on the people of Lafayette.

That the “lawyers” (aka PR agents for BS/AT&T and/or Cox?) are sending reporters multiple emails with their threatening “news” the week before the Lafayette team is set be in New York setting up the bond sale makes the whole slimy thing disgustingly transparent.

———————
To this point I’ve been willing to do no more than say that Naquin and her attorneys are pretty transparently serving the interests of AT&T (nee BS) and Cox. There is no money in a successful suit for Elizabeth Naquin and very little for her ambulance-chasing “personal injury” lawyers. With the Supreme Court decision they have lost all hope of ever being paid a penny by LUS or LCG on this case. Yet still they spend money on lawyers–money that cannot bring them any return. This has been an expensive lawsuit to carry forward–backed by a team of lawyers from several law firms, none of which are noted for their charity work. Someone is paying for this. Who benefits? Cox and BS/AT&T benefit. Who is hurt? The people of Lafayette.

Naquin is a new resident in Lafayette and clearly not a woman of means. She has been unwilling to make the slightest effort toward explaining to her neighbors why she wants to stand in their way and cost them millions of dollars in extra expenses to implement a decision that the people overwhelmingly approved in an hard-fought election.

This is a case made for investigative journalism. Who is Elizabeth Naquin? Why does she not have the decency to publicly justify the cost she is imposing on her new community. What is her connection with BellSouth and or Cox. What is her work history? When exactly did she move to Lafayette and why? Who is actually paying the expense of this series of lawsuits and threats? Are corporate funds or money from anyone employed by the incumbents involved. Are public relations firms involved in passing money on to its recipients? Which ones? What about Naquin’s repentant ex-ally, Matthew Eastin? Who recruited this student? Where did he get the money to pay his “share” of the expenses while he was involved? Did he pay anything? Was he asked to? How much?

Really…these lawsuits are going to cost the citizens of the community millions of dollars. It is now past the point where there is any possible legal or ethical rationale that could justify the continued legal harassment and hence no conceivable reason to not thoroughly investigate this situation. (Recall the feeding frenzy about much less expensive irregularities at the airport commission?) There is a big story here somewhere; anyone can smell it and the people deserve to know. (ULL journalism students, anyone?)

I’d like to know more–if anyone out there can shed any light on this please let me know. Here or via email.

Old Tricks: Pushy Poll

Somebody is up to old tricks. Cox or BS/AT&T or both are back at the polling game; trying to find ways to push the buttons of local citizens.

Lafayette has had experience with push polls–we saw two ugly ones during the fiber fight; one early on and one in the run up to the referendum which was recorded by a local and made the two incumbents who had collaborated on it a national laughingstock when it was made available on the internet and was widely linked to in broadband forums. The later “poll” contained both the ridiculous–a claim that TV would be rationed to alternate days since lawn-watering is limited in the summer months–and the irresponsible–claiming that only the southern (white) side of the city would get the service.

User Hoov in a comment on the Advertiser site revealed that he’s got a “push poll” call over the weekend. I talked with Hoov and he says that the call last weekend opened with 12 or 15 questions about standard, marketing sorts of things–his service, his satisfaction, etc. But then, abruptly, the tenor of the quesitons changed and the next 7 or 8 questions were probes intended to lead him to to be uneasy about government involvement with his telephone, internet, or cable connection. One question went something like this: “Are you comfortable with the government having access to your internet service?”

He said that the questions were clearly intended to scare.

Hoov, like other Lafayette citizens in the past, pushed back, making it clear that these weren’t fears that he had and that he didn’t think they were reasonable. A question about who the survey was far elicited only the initials of the company the young woman questioners was working for.

I’d be very interested in hearing from other readers who have been called for this survey. (It may be that this is exploratory; in that case only a relatively few will have been called. In a full-fledged push poll all or a large percentage of the population is called in an attempt to plant the misinformation widely.)

Did you get such a call?

Celebrate July 16

The anniversary of the July 16, 2005, community vote in support of the LUS fiber to the premises project should be celebrated in the community and by the community each year.

That day marked the culmination of one process and the beginning of another. The process that ended was an extended community discussion about Lafayette and the kind of future we want it to have.

Despite persistent campaigns of fear, uncertainty and doubt (FUD) waged by opponents of the LUS project, the plan won approval because citizens here came to view the fiber project as something consistent with Lafayette’s long-recognized desire to control its own destiny. It also won approval because proponents of the project were able to clearly identify the interests of the community as being separate from the interests of the corporations that opposed the project.

The fact that the project won by a 62-38 margin makes it easy to forget just how uncertain its prospects were when the the election on the project was first called. Remember, it was opponents who wanted the election. Those of us who favored the project were afraid that Cox and BellSouth (remember them?) would bury us with the dollars they could bring to their efforts to oppose the project.

I believe we won because, at the core of the campaign, proponents of the fiber project trusted the intelligence of the citizens of Lafayette to recognize their interests. We benefited greatly by the disdain for the community repeatedly displayed by opponents, but particularly BellSouth.

Now, after nearly two years of court fights, the project is moving forward. Bonds will be sold in a couple of months and money will be in hand to begin the work of building the network for which so many of us worked so long and hard to bring about.

So, with the last serious legal challenge dispensed with (sure would like to know who paid those attorneys for the plaintiffs in those suits!) and the project gaining momentum, the community should now move to a new phase on the project as well.

I believe we can do this by celebrating the anniversary of the fiber election by recognizing what we’ve accomplished and focusing on the new opportunities ahead. One way that we can do this is by bringing in a prominent speaker to inspire us to dream big about the possibilities that will open up to us as a result of every citizen having access to a fat pipe (100 megabits per second?) connection.

What kind of community can we grow here based on that kind of abundance? What kind of businesses can grow here based on the kind of bandwidth and connectivity that won’t be available in the vast majority of U.S. cities for decades to come? What does a community without a digital divide look and operate like? How much will our ability to educate ourselves and our children improve when access to information is a right, not a privilege?

One of the things the legal fight against the LUS project was designed to do, I believe, was to dampen enthusiasm for the project, as if the city’s commitment to using technology to differentiate itself as some kind of fad that would pass if opponents just dragged this out long enough.

They were wrong again.

The enthusiasm has not waned. Now that the project is moving forward, the time has come for the community to begin focusing on the opportunities that will soon be upon us.

Celebrate July 16!

Clarksville, TN votes in Fiber; 72% vote Yes!

The Leaf Chronicle of Clarksville, Tennessee reports that the voters there voted in fiber by a 72 to 28 percent margin.

Clarksville voters overwhelmingly approved Clarksville Department of Electricity’s bid to provide telecommunication services over a new fiber-optic network.

With the blessing of almost three-quarters of city voters, CDE in about six months will begin offering cable television and broadband Internet access over more than 700 miles of fiber-optic cable.

Interestingly apparently the city-owned electrical utility there, CDE, heavily emphasized the benefits to electricity customers of having a grid monitored by fiber. Those benefits were barely mentioned during the Lafayette fiber fight and certainly played no role in the eventual vote.

Clarksville’s cable incumbent Charter and phone incumbent BellSouth did not impose an extensive battle on the community in the way they did in Lafayette. Charter is in real financial difficulties and BellSouth had its merger with AT&T on the table as this proposal spun up. That might have something to do with the relative lack of opposition. It might also be that BellSouth and the cableco’s learned a lesson in Lafayette. I was contacted early in the campaign about helping with a battle there–but that battle apparently never really happened.

To my recollection this is the first fiber referendum to pass since Lafayette’s — recent muni broadband referenda have focused on wireless systems. But this should demonstrate that the appetite for real municipal broadband has not passed.

Welcome Aboard Clarksville!

Update 11:16–While noodling around the internet looking for info the Clarksville fiber network I ran into an interesting fact about Clarksville’s plan: they’re gonna run fiber to every home. Period. Wow.

The deal here is that they will be installing new “meters” to monitor electricity, eliminate meter readers, and provide the possibility of new services. These meters are also set up to provide phone, cable, and internet should the customer want to purchase those too. So their upfront costs will be greater but will presumably be borne at least in part by the electrical side of the utility–some part of the maintenance cost for the fiber will be borne by the electrical utility as well. For the record: more sophisticated monitoring and maintenance devices has long been a big issue with electrical utilities and the day of their arrival has been delayed often. The desire for such capacities has not been invented for the purposes of Clarksville–this was the idea behind the initial development of BPL–Broadband over Powerline, a perennial wannbe in the broadband races.

Clarksville’s utility is so committed to the monitoring aspects that it is going to go ahead and build a fiber-optic monitoring system at a cost of about 72% of the total for a full telecom system even if the referendum fails. So the referendum becomes an issue of whether or not to put the system to use for the benefit of the citizens or or just use it monitor electricity–not whether or not the system will be built. The choice is between an 88 mill system with benefits and 73 mill (with interest) system without. Here’s the way an article in the Leaf puts it:

Voters, then, technically will be making a $25 million decision as to whether CDE can offer telecommunication services in lieu of raising rates an estimated 3.5 percent to cover construction costs.

The political and fiscal advantages to taking this route are pretty obvious.

I’d think the downside aside from upfront costs would be that replacement costs and eventual telecom system upgrades would be more expensive than they would be otherwise. (If you’ve got a combo fax/printer/scanner you have to replace it all if the scanner goes down or if you decide that you need higher printer resolution.) But if the incremental cost of the monitoring module were small (and I expect it would be) and if it could be hung cheaply in a widely available commercial box that might not be a noticeable issue.

Well worth thinking on. Louisiana law does allow for shared costs…..and future muni fiber designers and their politcal backers might well want to consider the idea.

It’s the Same All Over

It’s the same story all over the map; corporate opposition to local telecom initiatives has become a regular feature of such ventures.

In the day’s news are upset communities from across the country. Naperville, IL is furious with AT&T (our new phone company overlords) for refusing to follow the law (shock!); Muskegon, MI can’t fathom why Verizon won’t allow poll attachments for its new fiber system (No!); Clarksville, TN anticipates opposition to its plan to roll out fiber (Duh).

Naperville is angry about AT&T’s claim that it doesn’t have to follow the law governing cable companies if it wants to offer cable services since it isn’t a cable company….. Confusing? You bet. AT&T likes confusing laws. Fron the local Daily Herald:

An angry city council rejected the telecommunication giant’s request Tuesday to offer the service without full build-out in the city after learning the company had reneged on several negotiating points previously agreed upon.

“I’m very sorry I wasted my time meeting with AT&T,” Councilman James Boyajian said. “I have not dealt with many companies that showed less integrity than AT&T on this thing and if this is the way they are going to do business, other municipalities better watch out.”

The build-out requirements were the nub of the dispute over BellSouth/AT&T’s recent attempt to secure a state-wide video franchise. The phone company really, really doesn’t want to have to serve everyone in exchange for using the community rights of way.

In Muskeogen the phone giant Verizon isn’t allowing a local school district/local government consortium to attach to poles they own regardless of a state law requiring them to do so

Local officials are fuming about Verizon’s actions, calling them “delay tactics” and “sabotage.” The total cost of avoiding Verizon poles is estimated at more than $300,000, said officials with the Muskegon Area Intermediate School District, which spearheaded the fiber project.

“This is a classic case of a project that has been developed for the common good going up against corporate self-interest,” said MAISD Superintendent Susan Meston…

“It makes me angry because somewhere along the line, I have to guess their stand has to be fiscally motivated,” McCastle said. “In the name of their dollar bottom line, they want to do what they can to mess with people in Muskegon County.

State law requires pole-owning companies to allow educational institutions to attach to their poles and other owners are complying. Verizon, you’ll be shocked to discover, is fighting the law on hard-to-understand technical grounds in the courts. The local group has decided it would be cheaper and faster to simply lay in their own poles.

Sound familiar?

In Clarksville a referendum to approve revenue bonds for a fiber-optic system similar to Lafayette’s is going to be put before the people in November.

Spradlin said voters can expect to see campaigning by CDE and opponents to the plan — such as Tennessee Cable Telecommunications Association, Charter Communications and BellSouth — as the referendum approaches.

“There have been some relatively bloody fights in some other communities,” Spradlin said…

“After seeing what these other communities have gone through, we realized real quick we were going to need some help in these areas,” Spradlin said.

Representatives of Charter, BellSouth and the TCTA spoke at City Council and town hall meetings last winter as CDE sought to become an authority, in addition to lobbying the City Council members individually.

Clarksville needs a citizen’s group. Watch out guys…

I’m no longer surprised at such stories. But the what I’ve started to notice in the last 6 months or so is that the language on the part of the communities has changed. Back when Joey Durel and Terry Huval were calling the incumbents “greedy out of state monopolies” and “gourmandise” such langauage was shocking–and inspiring. But now it is clear that the wind has shifted and such langauge is no longer taboo. This is how attitudes change. The incumbents are burning up their credit with the public. They’d be wiser not to stand in the way of local communities.

It’s the same all over. Lafayette is hardly alone.

On Killing the Goose that Lays the Golden Egg

The Advocate carries the odd story, splashed across the front page of its Acadiana section this morning, that retells the tale one Steve Pellessier told the Concerned Citizens for Good Government yesterday. Pellessier wants Lafayette to sell off LUS to pay for current shortfalls in road funding.

Thank heaven that at least some folks have a classical education. Joey Durel responded humorously but basically dismissively to the suggestion by saying that do so would be like getting “rid of the goose that laid the golden egg.”

The idea of selling off a consistent money-maker, to the tune of 17.2 million and a quarter of the city-parish budget each year, for a one-shot, quick fix play to meet the parish’s road needs following Katrina & Rita is plain foolish. It has to be one of the purest examples of the lessons of Aesop’s fable concerning “the destructiveness of greed, the virtue of patience.”

First, historically LUS has had lower prices than its private competitors (the current rough equity is unusual) and Pellessier appears to know that. Citizens would end up paying twice: once in the form of 25% higher taxes–the money has to come from somewhere–and once in the form of higher utility bills. Second, and this point appears to have very discretely not been raised considering the current divisiveness of the issue in the council, it would be a sale of city assets to benefit almost solely suburban needs and the downstream cost of more expensive electricity would be borne solely by city residents as well. Politically this should be a major nonstarter. The current push to dissolve the city-parish form of government is mostly based on formless resentment. Any movement in this direct would give that movement a basis in real injustice and a real constituency.

Beyond the foolishness of the idea of killing the goose you’ve got the fact that this goose is fertile. The goose in the fable is obviously sterile–it lays golden eggs but those eggs don’t hatch. It is unique. LUS however is incubating another goose that promises to lay even larger golden eggs. The mere threat of an LUS Telecom network has kept Cox from raising prices. The reality of a cheaper, more capable alternative will save us all a bundle off our monthly bills.

Beyond the cost savings we should all be aware that the income to the city-parish coffers should be substantial. That 17.2 million LUS gives us comes chiefly from electricity…a low-margin utility. The money coming into the coffers from the Telecom division will mostly be from high-margin cable industry competition. How much do you spend on electricity? How much do you spend on cable, internet, and phone service? Think about it…

If there is anything that’s more foolish than killing the goose that laid the golden egg it’s killing one that has offspring that also lay golden eggs.

Though the Advocate story doesn’t mention it Pellessier, in a recent letter, did say that LUS could keep its recently voted-in telecom division. That’s a crock and Pellessier, an opponent of the LUS plan, should know it. Much of what makes the telecom unit economic–and the main reason more cities are not in a position to make the same decision Lafayette has–is that Lafayette already owns and operates the necessary infrastructure in poles and maintenance crews in order to service its electrical division. It is hard not to suspect that a suggestion this off the mark isn’t motivated in some part by left over resentments from having lost that fight.

You’d think a “Certified Commercial Investment Member” — someone who specializes in commercial real estate investments–would understand that trading a growing revenue-producing asset for a one-shot wasting asset is always a bad idea. Don Bertrand makes the point more succinctly:

Don Bertrand said he’s glad to have a discussion about how to fund roads, but that LUS is the city’s best asset. Bertrand said there are other options to raise funding without giving up a revenue-producing entity like LUS.

“When we’re done, we’ll have roads, but roads don’t produce money,” Bertrand said.

Huval on Cox & Lawsuits; Quiet and Not

Kevin Blanchard has an unusual piece in the Advocate today. Most “news,” hell almost all news, is event-driven. In order for a story to be a “story” it has to be hung on something happening; usually some dramatic change that occurred pretty suddenly.

Today’s article dealing with the players in the fiber-optic telecom utility chess game breaks that mold. It reports on something that isn’t an “event” but should be understood by the public. The article notices the different ways that the incumbents are publicly dealing with a dramatic loss at the polls and it hints at the private cross-currents of professional and personal influence among “influentials.”

I’ve long been an advocate of more “educational” news–news which places a premium on understanding rather than simply describing events. (I try to pursue some of that here.) This is a good think; the article deserves more than the quick glance most readers are likely to accord it.

Public Quiet
The headline “Cox ‘quiet’ since election” keys on remarks made at last night’s Lafayette Public Utility Authority meeting (the LPUA is the city subset of the City-Parish Council and generally meets prior to the Council). Cox has been relatively quiet. But it has joined BellSouth in attempting to take advantage of the situation at the Louisiana Public Service Commission so “quiet” doesn’t quite get it. But it is true that BellSouth has put itself in the way of most of the bad publicity that is to be had from opposing the will of the people of Lafayette.

Why? My suspicion is that Cox thinks it can compete and BellSouth is pretty sure that it cannot. Hence BellSouth is more desperate to prevent municipal competition than its erstwhile ally. Cox has made the decision to keep Lafayette when it shed most of the division that Lafayette was in. Cox, as we’ve remarked repeatedly on these pages, is well positioned to eat BellSouth’s lunch in the coming broadband battle. BellSouth may be well aware that in a full-scale battle for triple or quadruple play customers in Lafayette it will be third ran… At the moment BellSouth’s DSL product competes directly with Cox’s broadband. But it (lists) a slower connection speed and has a smaller customer base. So it competes, against all its monopoly instincts, on price; it is cheaper to buy DSL. But with two broadband alternatives both faster and with LUS committed to driving down the price 20% on its first day of business BellSouth will be both slower and will be deprived of the cheaper price that currently allows it to compete.

BellSouth needs to find a way out. Any way out. For BellSouth, if not for Cox, competition is not a viable alternative. What is true of Lafayette is true, if less urgent, throughout BellSouth’s footprint: it does not want and cannot afford a third, faster, cheaper municipal alternative that reveals it as the last place finisher rather than the cheaper alternative to cable in the expanding broadband market.

That, for my money, is at the basis of Cox’s quiet and BellSouth’s belligerence.

Private Influence
But the public arena is not the only place where cats can be skinned. And the Advocate article gives a small peek into that universe. The article notes the hiring of Karmen Blanco by Cox (a story I posted on earlier) and also highlights the role of Lafayette law firm Perret Doise in BellSouth’s litigation. Perret, it notes, managed Durel’s transition team and Karmen is Kathleen Blanco’s daughter. I have no doubt that both do and will do honorable jobs for their employers. I similarly do not doubt that their ties in the community have something to do with their hire. There are, as sociology texts and traditional wisdom teach us, intricate ties of influence that are professional, personal, and indirect. For instance Perret is also on the board of Our Lady of Fatima elementary school, Karmen’s previous employer. Beyond this story hiring the local public relations firm, Calzone and Associates, and that firm hiring the son of Senator Cravins is not likely be simple coincidence.

Public, professional ties bring private influence into the picture; to say that doesn’t happen is foolish; to say it isn’t intended by the corporations is naive.

It’s all worth watching if you care about the interests of the community as a whole.

There’s quiet and then there is quiet. The fuller story here may be that Cox is learning how to be publicly quiet and privately effective.

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.