Bruce KushnickNew Networks Institute

Reverse AT&T-ALEC

“They Will Not Close Down the Public Switched

Telephone Networks (PSTN) on My Watch.

Period.”

Welcome to Brooklyn

Ma Bell

• 1 million employees• Owned the hardware,

including the phones.• Owned the 22 local

phone companies. • Owned AT&T Long Lines. • Owned Bell Labs.• Was regulated on local

service prices.• Not Regulated on Long

Distance charges.

Judge Harold Greene

The Seven “Baby Bells”

Al Gore’s Information Superhighway, 1992

Telecom Act of 1996

• Open the “Last Mile”.

• Lower prices and advanced services *(broadband) though competition.

• Allowed indie ISPs to use “line sharing” for DSL.

• Allow AT&T & MCI to offer local Service.

• If the networks were open, the Bells could enter long distance.

AT&T and Verizon Merger Mania

at&t• Southwestern Bell (SBC)• Pacific Bell• SNET• Ameritech• AT&T• BellSouthVerizon• Bell Atlantic• NYNEX• GTE• MCI• Alltel

3 Big Bells, No Competition.

Rise and Fall of Internet Service Providers

Internet Service Providers, 1997-2006

0

2,000

4,000

6,000

8,000

10,000

ISPS

AT&T & Verizon

• AT&T U-Verse – Copper-to-the-Home Bait & Switch.

• Verizon has FiOS. – Fiber-to-the-home• AT&T --only 4.3 million U-Verse TV• Verizon only 4.7 million FiOS TVDigital Dead Zones:• AT&T stopped deploying-abandoning 50%.• Verizon stopped deploying -abandoning 50%• NO CABLE COMPETITION.

America was Charged $360 Billion Dollars for Networks We Never

Got.

You Paid About $3000.00

Wireless

• Wireless: AT&T and Verizon split up the market– enhanced revenues– 200 million customers.

• Wireless is a wired product.

• Special Access 80%profits

• Collusion of wireline-wireless

• Deals with the cable companies.

Cable Companies?

• Lobby with the phone companies.

• Closed Networks – Can’t choose channels or video providers.

• Bandwidth caps to block outside video.

• Can’t replace Set Top Box.

• “Social Contract” – Customers Paid $42 Billion for Upgrades.

CommTrust-ALEC Close PSTN.

• 23 states removed telecom regulation.• 19 states block municipalities.

Damage:

• Remove “Carrier of Last Resort” – Phone breaks – too bad.

• Shut down remaining competitors.• No Net Neutrality. • Remove Regulatory Oversight.

Immediate Threat

Federal:

• AT&T -FCC –Technical Advisory Council-”Sunset the PSTN”

• AT&T Gets FCC Task Force started

• AT&T, USTA Petition filed -- Active

• Congressional Hearing Feb 6th, 2013

12 Competitors– One Big Bell.

7 RBOCs•Ameritech•Bell Atlantic•BellSouth•NYNEX•Pacific Bell•Southwestern Bell•US West

Long Distance•AT&T•MCI

ILECs•SNET•GTE•Alltel

Why We Will Lose

• ALEC- key state legislators, whole legislatures.• AT&T-funds state legislators• AT&T ‘foundation’ grants –legislatorsSkunkworks: • CommTrust -Skunkworks- multi-state• “Legit” funded groups – Caucus• Astroturf groups-multi-state• Co-opted Non-profits • Media has no clue

Our Side?

• No ‘other side’. AT&T is now at&t.• Co-opted basic terms.• No unified messaging. • No Education• No deep pockets. • No ‘coordinated’ group response.• Our allies can be our own enemies.

– Tech and Internet community. – Unions, competitors, --- ‘middle ground’

• No media campaign. • Pot shots, small wins SOPA, etc. • No Offensive Plan, Tit-for-Tat.

Reverse ALECWhich Future do you Want?

Read My Lips

• Privatized Public Property – Investigate.

• Upgrade the Networks – We Paid Them to do it.

• Open the Networks– Customers Choose their Internet, Phone, Cable or Broadband Provider.

• “Keep your hands off my bits.”