Telcos: The Internet Will Collapse If The Gov't Doesn't Gives Us Lots Of Money

from the proof,-please? dept

Mon, Nov 24th 2008 8:49pm — Mike Masnick

For a while now, we've been noting that whenever you hear people warning about the impending broadband crunch, it's politicians, consultants or lobbyists. When you actually talk to technologists, they point out that there's no problem and that normal upgrades will keep everything just fine -- even without having to do any kind of traffic shaping or violation of net neutrality.

Yet, that won't stop the lobbyists, consultants and top marketing execs from claiming otherwise. A trade group heavily funded by AT&T is out yet again, warning that the internet will collapse by 2012 if "something" isn't done -- with that "something" being basically big government subsidies to the telcos. Consider it the telco bailout plan of 2009. Hell, if we're already bailing out Wall St. and Detroit, why not telcos as well?

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Filed Under: bandwidth crunch, broadband crunch, exaflood, net neutrality, subsidies, telcos

18 Comments

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Anonymous Coward, 24 Nov 2008 @ 9:22pm

what happen to no government interference in business?
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Oliver Starr, 24 Nov 2008 @ 9:39pm

What Happened to No Government Interference in Business?
@anonymous coward:

That ended when Bush and his corprocratic cronies took over power in Washington, bonused themselves and their CEO buddies up the ass and basically gave the corporations carte blanche to run roughshod all over the rights of the individual the best interest of the shareholders and the economy in general. They all knew that they were on a short fuse and now that it's burned up and blown apart they leave the rest of us with little choice but to pick up the pieces and put dumpty dumb and his bro's back together again.

Bush's big mistake was simply that the bomb blew up a couple of months too early, otherwise he would have been out of office and able to blame all these problems on the administration that inherited them.

It's a freaking joke that the CEO's that ran their companies into the ground not only haven't been indited but that they are generally exiting with all their executive compensation and multimillion dollar golden parachutes intact.

Worse, for the most part these aren't the CEO's that actually founded these companies and were thus responsible for the job creation associated with these big firms but were simply professional CEO's that were excessively compensated for their reputations and supposed managerial acumen Some acumen, I sometimes wonder if baboons would have done better. The only difference is the number of bananas it takes to make a baboon happy is far less then the average F1000 CEO demands.

In another time these greedy bastards would be taken out behind the chemical shed and put out of our misery instead of riding off into the sunset in the turbo Bentleys flush with the cash from the Paulson-regulated golden parachute bailout program.

The fact that more people aren't absolutely boiling mad about this astonishes me and the news that now the telcos are jumping in on the bailout buddy system handout game is not surprising in the least. I only wonder when PepsiCo, Coke and McDonald's are going to come with their hat in their hands too...
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Anonymous Coward, 24 Nov 2008 @ 10:13pm

Re: What Happened to No Government Interference in Business?
It's no more Bush's fault than any of the other political cronies in DC. Bottom line it's the general public being either too stupid or not taking any action to prevent this crap. The people that signed on the dotted line for the ridiculous loans are as much to blame for this madness as those peddling them. They knew damn well they could not afford them. For those flipping houses, they new damn well of the risk involved, let them pay the piper. The only thing happening now is the government getting more involved where they have no business being, they are taking the repercussions of bad business decisions off the table.
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Anonymous Coward, 24 Nov 2008 @ 10:37pm

I'm madder than Hillary Clinton with a busted Buns of Steel get-fit video about the state of the good old U. S. of A. this Turkey Season, folks.

So I'm gonna calm down, light up a Lucky Strike non-filter, pour me a big glass of Old Crow and count to 10.

1. I'm so fed up with this bailout crap I could vomit. Who the hell said everybody had a right to subsidize business with Government Bailouts? Those whining liberals are all blubbering about where the money went. You know what? I believe that if you're lazy and don't make stuff people will buy, you fail. Don't come whining to the government, they aren't your parents. Let's make that suicide doc Kevorkian the dad-blamed Treasury Secretary and let him get rid of the dead wood who don't know how to read a balance sheet!

2. Why has the value of my home dropped by 45 percent since they built that new AIG office down the street? Because they've got more criminals in the damn office than they do in San Quentin, that's why.

3. I still say they oughta put an exterminator's tent over New York City and pump it full of roach spray. 'Nuff said.

4. The only thing I've been happy about lately is the INSURED BY SMITH & WESSON bumper sticker my grandson put on his tricycle the other day. I gave him a little .22 pistol for his birthday and it looks like he's gonna be a chip off the old block.

When did we, as a people, sign this national suicide pact that rewards disgusting irresponsibility and punishes everyone else?
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mike, 24 Nov 2008 @ 10:50pm

last straw
I will tell you this much, if ISP's get a bailout, I will be the first to start cutting their lines and destroying their equipment. We have tried to do things the right way, and if all else fails I believe we need to take things into our own hands. I will fight them with every fibre of my being and if that means I spend a signifigant portion of my remaining years running from the law, then so be it, because as far as I can tell the laws are not being used for our protection, but the protection of big greedy business.
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Michael B, 24 Nov 2008 @ 11:18pm

Unfortunately...
With the $700B bailout plan, Washington has shown big business that it's OK to fail... Uncle Sam will take care of you. So, the automakers, the telcos and lord knows who else will be standing in line with their hands out waiting for help. Who gets screwed? The taxpayer, who gets NO bailout. It's pathetic!
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IanK, 25 Nov 2008 @ 12:52am

Instead of giving your execs bonuses and the rights to the corporate jet, why not just pay the execs the salary they've agreed to, and save the extra money in an account. Everybody knows that there are both ups and downs in business, much like in everyday life. A business can't run a successful business as though it is going to be successful forever, and not feel the pain later when the market turns and s*** goes pear-shaped.
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Mr Big Content, 25 Nov 2008 @ 2:16am

Communazi Fascisto-Reactionary Godless Liberal Swine
Don't you understand, these large companies, these shining monuments to Free-Market Capitalism, are the essence of What Makes America Great. If you're going to cut them loose, leave them to their own devices, tell them to "sink or swim", then you can only be a heartless bunch of Communists who just want to kill our jealously-guarded Freedom and Independence. You hate us because we're so powerful and strong, that's why you won't take pity on us.
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Prophet, 25 Nov 2008 @ 2:33am

Who cares, the world is supposedly supposed to end in 2012, so why should we bail out Telco's too....

Besides, before they give them a bailout I want to see a detailed report on what they have been doing with they money the rob from us each month...
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bob, 25 Nov 2008 @ 4:02am

The dream comes true.
Three things went wrong in the history of the US economy.

1) Wilson signed the Federal Reserve Act turning the the purse strings over to the bankers.
2) The US went off the gold standard.
3) The New Deal that lengthened the Great Depression.

The first bail out was Chrysler, Then the savings and loan fiasco.
Government has been interfering in the economy and industry for over 150 years or before the Civil War.
A wise man once said that when people realize they can vote themselves tax payer money that will start the fall of the Republic. What you are seeing is the dream of John David Rockefeller coming to fruition.
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Pea, 25 Nov 2008 @ 6:25am

Re: What Happened to No Government Interference in Business?
I love it when someone goes on an outrageously biased attack against some political entity or organization then writes a 6 paragraph comment about it.

It just makes my eyes glaze over and you Ollie, have definitely made my eyes glaze over!
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Charlie, 25 Nov 2008 @ 6:42am

I don't understand. A certain species of Americants has always used the government (public monies) to enrich themselves. Gouging the taxpayer (average citizen) has been part and parcel of Americant public and private policy forever. Why the surprise and indignation? Look, these people don't give a shit about the average person. We're all a bunch of suckers (customers) to them. Its better to accept that and act accordingly. Its an unproductive waste of time to vent.
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mobiGeek, 25 Nov 2008 @ 8:25am

Re:
When did we, as a people, sign this national suicide pact that rewards disgusting irresponsibility and punishes everyone else?
Right around the time that we figured solving our problems involved having a drink, a smoke, committing mass murder and putting guns in the hands of kids on tricycles???
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JustMe, 25 Nov 2008 @ 8:58am

Nobody has bailed out Detroit yet
I really really really hope they do, but they haven't yet.
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Lawrence D'Oliveiro, 25 Nov 2008 @ 1:21pm

Re: Communazi Fascisto-Reactionary Godless Liberal Swine
I think somebody just had a sargasm.
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Easily Amused, 25 Nov 2008 @ 1:29pm

Re: What Happened to No Government Interference in Business?
Typo leads to coining of my new favorite word.

I was skimming and read this- "...corprocratic..." (rule by corporations), as Coprocratic (rule by feces).
I was about to congratulate you on this wonderful term, when I caught the missing 'o'.
So I guess I will take credit for this new word, and I encourage everyone to use it where appropriate.
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Pet Wombat, 25 Nov 2008 @ 2:41pm

Re: What Happened to No Government Interference in Business?
Anon: I know that Bush-bashing is a very popular occupation, unfortunately it is not that simple. If Bush and his "corprocratic cronies" were the problem, then a simple change in the administration would cure everything.

Unfortunately, this fails to recognize the basic structure (and inherent problems) in our system of government. While the president can attempt to set an agenda through the budget proposal submitted to congress, he cannot write, propose, submit, discuss, or vote upon any legislation - that is reserved for the legislative branch. He can direct some legislation through veto (or the threat of), and can issue executive orders in certain circumstances (which are subject to congressional override). The judicial branch then often "interprets" the legislation or executive order as it applies to specific cases.

There is, of course, the fourth branch of government - the "bureaucratic branch". As I have actually worked inside this branch I can speak with at least a little authority on this subject.

Herein lies the problem:

Congress wrote and passed the laws that allowed the various financial fiascos, and they are charged with providing the oversight. It is telling that Appropriations Committee chair Barney Franks (D) who co-authored the bailout without providing any restrictions, was "shocked" that executive of the failed banks were paying themselves huge bonuses with the bailout money. Congress is also who will write and pass a Telco bailout - probably with the same nebulous purpose and non-existant oversight.

The Judicial Branch, which has repeatedly demonstrated a fundamental lack of understanding of business, economics, technology, or, well, pretty much anything they are passing decisions about, will then probably twist the law into something that agrees with the position of the largest and best-funded legal team.

The Bureaucratic Branch will continue to do whatever they want, adopting a version of the old Chinese adage "the mountains are high and the emperor is far away". Most large corporations also know that a little "support" provided to these generally under-funded, under-appreciated clerks will get a lot of things done under the radar.

So... nice rant, Anon, but I fail to see how this is, or will be, all Bush's fault.
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allen (profile), 25 Nov 2008 @ 7:36pm

Bailout? Sheeze!
This was the telcos chanting their mantra that unless the gubmint gives incentives (cash and regulatory), they cant justify investing in broadband and if they dont invest then broadband Armageddon is coming.

They may have taken the opportunity to throw in a coda on how these "challenging economic times" make investing less attractive, but it was the same old song.
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