The benevolent (gag) New York Attorney General and gubernatorial wannabe wants to put a chicken in every basket, ah, I mean affordable broadband in all New Yorkers homes.
Businessweek writer Burt Helm reports:
"If elected, Spitzer said he wants to contract with companies in the private sector to provide high-speed Internet service at affordable rates. The private company or companies would pay for the necessary infrastructure and agree to sell the service at low rates, in exchange for being the sole provider over that infrastructure for several years. He said the plan would be similar to what's happening in Philadelphia, where the city has contracted with Earthlink Inc. (ELNK)
"Spitzer and proponents of similar plans argue that is not enough. "The question isn't about whether or not they have access, period. The question is whether or not they have access to affordable high-speed, high-capacity broadband. If it's not affordable, it's not accessible. And if it's not high-speed or high-capacity, then it's ancient history," says Christine Anderson, a spokesperson for Spitzer's campaign."
What's amazing about all of this is that it's bogus. Over 90% of New Yorkers have access to at least one broadband Internet provider, with the great majority having three choices - the phone company, the cable company, and a satellite service provider.
The Spitzer campaign attempts to call this a debate over whether the U.S. is falling behind other countries in broadband affordability. Who cares? In other words he's saying that the less than 10% of New Yorkers not having or probably not caring whether they have access, are going to help us poor, miserable cave dwellers to catch up with other technologically superior countries.
"Eventually, the state of Pennsylvania struck a compromise that allowed Philadelphia to proceed with its broadband plan, but barred other municipalities in the state from following suit. Verizon, AT&T (T), BellSouth (BLS), and others argue that government should not enter the business of providing a service that is already supplied by private companies."
These companies are right. To force a company to offer below market prices in exchange for a government monopoly on service is legal schizophrenia. They better not talk about the alleged Microsoft (MSFT) monopoly or Wal-mart anymore.
Bruce Leichtman, principal analyst with Leichtman Research Group, revealed the folly of this political nonsense accurately:
"Broadband adoption really correlates directly with household income. If Spitzer wants to solve the digital divide, he should be giving everybody a computer."
What about it Uncle Spitz? Are you going to offer this to people without computers? Well at least the cable bill is artificially cheap!
I think that attempts at socialism by politicians running for election should result in them being put on trial. What do you think?
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