I Hate Bellsouth More Than Anything Else in the World - An Introduction
Let me start by saying this–I hate Bellsouth. I’ve never been so angry with a corporation as I’ve been at Bellsouth dozens of times over the years. I can’t think of a situation that proves a company as inept as the time that Bellsouth charged us for two separate DSL services, in one house that had one phone line. Between their glacial response time and the Indian call center reps who clearly hadn’t learned enough English to actually communicate with me–let alone help me– there isn’t much about Bellsouth that doesn’t frustrate me. Then, relief. We finally lived and worked in an area with five bars, and could ditch Bellsouth. I don’t think I’ve ever had a phone call as satisfying as the one where I called Bellsouth to cancel our phone service and DSL subscription. They saw that I had been a customer for several years and pulled out the stops. I politely listened to their offers of greatly discounted service and I suggested a few places where they could shove said offers. Years of bad service, incompetent CSRs, and predatory pricing had made me bitter and spiteful, and this was my only opportunity to really vote with my wallet, so made sure that the poor “retention specialist” felt my wrath. Yes, I’ll burn my bridges with a business that has acted unfavorably; I don’t care what they think of me.
Lest you confuse this space for some kind of Clark Howard-ian discussion of consumer gripes, I’ll get to my point, which is that…
I Lied–Actually, I Probably Hate Nationalization of Industries a Little More Than I Hate Bellsouth
Hours after New Orleans officials announced Tuesday that they would deploy a city-owned, wireless Internet network in the wake of Hurricane Katrina, regional phone giant BellSouth Corp. withdrew an offer to donate one of its damaged buildings that would have housed new police headquarters, city officials said yesterday.
According to the officials, the head of BellSouth’s Louisiana operations, Bill Oliver, angrily rescinded the offer of the building in a conversation with New Orleans homeland security director Terry Ebbert, who oversees the roughly 1,650-member police force.
City officials said BellSouth was upset about the plan to bring high-speed Internet access for free to homes and businesses to help stimulate resettlement and relocation to the devastated city. Around the country, large telephone companies have aggressively lobbied against localities launching their own Internet networks, arguing that they amount to taxpayer-funded competition. Some states have laws prohibiting them.
If your employer asked you to chip in, say, a third of your paycheck to build a robot that would completely replace you, with the knowledge that they wouldn’t need you anymore once the robot was complete, would you do it? What if your employer forced you to do it?
Nearly every business contributes to the communities in which it does business in the form of state and local taxes. For a giant such as Bellsouth, these taxes, in the form of income tax, payroll taxes, and others, must be enormous. For the local government to go and use that money to build a service that supplants one of Bellsouth’s most lucrative offerings is ridiculous and immoral. Bellsouth has the right to charge whatever crazy price they want for their services, and for the record, I think their pricing structures for both their internet offerings and their POTS services are crazy. But this annoying practice will change with increased competition from Cable Modem service and FTTH on the ISP side, and Vonage and cell phones on the POTS side. Even if it doesn’t, look at me– I am not a Bellsouth customer anymore, by choice. That’s how it should work.
So, we come back to the issue of the offer of the donated building, which Bellsouth has now rescinded. The indignant outrage that some are expressing over Bellsouth’s withdrawal is understandable. Corporate giving, they cry, should not be contingent on the recipient behaving in a manner pleasing to its benefactors. But such corporate giving is voluntary, and Bellsouth would have been foolish to not rescind it, virtually consenting to NOLA’s decision to use their own tax dollars to crowd them out of the market.
Counterpoint
Here in Chapel Hill, NC fear of angering local businesses and large corporations is preventing a municipal network from being created by the Town. See how Bell South treats suffering New Orleans? Remember what Verizon did to Philadelphia? Imagine what big bad business will do to Chapel Hill if we dare give something to those in need!
- Angry BellSouth and Anti-Public Good Chapel Hill Business
“Helping those in need” is quite a different proposition from using your own tax dollars to put you out of business. The author of this piece likely wouldn’t cry a single tear for the people who would lose their jobs if nobody had to pay for internet service in this market. People who think this way value the needs of the underprivileged, but don’t seem to give a damn about the people who’ve worked to build a business. It reminds me of a discussion I had about mandating that power companies heat the homes of people who can’t pay. There are people on both ends–people with jobs at Bellsouth or Verizon or whoever, people investing in these companies, etc. and it’s as if you can just ignore these people because you think we should wield the government as a handout tool to give people what they want for free.
Saving the Net: How to Keep the Carriers from Flushing the Net Down the Tubes
This article makes several fantastic points. One I had forgotten: Bellsouth and the other carriers built their infrastructure, and indeed their legacy, in a highly regulated, anti-market market. That’s why it’s such a beautiful thing to see Vonage, Skype, and the like rush into the market, swords drawn, and declare war on the dinosaurs. And on the broadband carrier side, as the article points out, we have Google. (If you haven’t read about the efforts the Big G is making in the nationwide wireless space, read all about it. )
In other words, these solutions are the panacea to any problems I might have with Bellsouth, and if they are successful enough, might make us forget that Bellsouth’s success was built on government regulation in the first place. But these alternatives will only thrive in an environment where they can compete. If the local government all of the sudden hands out internet access to everyone, free of charge, we’re back where we started– with a government-built monopoly that obviates any need for market competition.