Broadband Bureaucrats Gone Wild
Last week, Maurice “Moss” Bresnahan stepped down as head of ETV – South Carolina’s public television and radio network.
Of course, lost in the under-researched MSM spin surrounding Bresnahan’s departure is a messy back story involving his failed attempt to turn ETV into a state-owned telecom, as well a nasty turf war with the state’s chief information officer (and the legislature) that is still evolving.
And since hundreds of millions of taxpayer dollars are potentially at stake, we figured it might be a good idea for us to break it down for you …
As part of ETV’s educational mandate, it owns broadcast licenses to deliver instructional television shows to our state’s worst-in-the-nation public school system.
When TV stations across the US make the transition to digital broadcasting in February of 2009, the ETV educational licenses will also need to switch from analog to digital.
Several years ago – excited about a new untapped source of funding – Bresnahan approached Clearwire, a controversial internet startup that delivers broadband connections to homes and business through new and still unproven “WiMax” receivers instead of traditional phone lines or satellite.
ETV quietly worked out a no-bid deal where Clearwire would take control of all the state’s licenses and transition them to digital broadcasting.
As part of the deal, Clearwire would walk away with a decades-long contract to sub-lease the unused portion of the state owned spectrum, giving them free access to a ready-made statewide broadband infrastructure.
ETV would then have their licenses transitioned for “free” and Clearwire would get free (or heavily subsidized) and exclusive access to a taxpayer-financed telecom infrastructure of transmission towers and broadcast licenses.
Somewhere along the way, lawmakers uncovered the details and halted the plans (despite thousands of dollars in taxpayer-financed lobbying by ETV to push the deal through).
Last year a joint study committee of Senators, House members and private sector experts developed recommendations for a simple open-market auction of the licenses to ensure a better deal for taxpayers.
But Moss’s vision of a state run Internet monopoly is still alive.
A tiny but vocal group of lawmakers, including S.C. Rep. Dwight Loftis, are still pushing for socialized Internet. Realizing that ETV mission creep makes for bad PR, they are now rallying around the unlikely mantra of socialized Internet for … wait for it … “economic development.”
Which, of course, would fit in perfectly with South Carolina’s larger command economic plans.
And so the small and harmless-sounding “South Carolina Educational Broadband Service Commission” was created by the legislature last session and tasked with drawing up the details of a free market auction of the ETV licenses.
Shortly before the legislation was passed, however, Loftis and his allies were able to insert some vague language in the bill about a contract that used the licenses “in other manners deemed appropriate.”
Loftis also did some political horse-trading with RINO Speaker of the House Bobby Harrell to have one of his WiMax sycophants appointed to the Commission.
Now, some of the technocrats on the Commission are openly pushing for a “sweetheart deal”and a behind-closed-doors “parallel track of negotiations” with their favored telecom firms.
Rather than quickly drafting requests for proposals (RFPs), which would need to be approved by the Joint Bond Commission and the Budget and Control Board well before the FCC’s deadline of January 2009, they are trying to develop an all encompassing wireless plan for the state that threatens to crowd out the private sector.
All this based on a pre-occupation with WiMax, an emerging technology that hasn’t even been adopted yet as a national standard.
Insiders close to the Commission are split: some think RINOs Harrell, Leatherman and Cato want to use their appointees to bypass the politically damaging process of an open legislative debate and push forward with a state-owned telecom through the bureaucratic process of Commission decision making.
Others believe that the lawmakers are simply asleep at the wheel, unconcerned with the possibility of an open market auction, and the tens or hundreds of millions in state revenues it could bring in.
Either way, a vocal portion of the Commission is apparently rolling ahead, full steam, with grandiose dreams of a command and control-style state Internet economy.
Which is precisely the approach that got this state in the mess its currently facing, be it jobs, education, wages or our budget.
A “sweetheart deal” means public risk and private profits; virtually guaranteeing that any public telecom – or oddly named “public-private partnership” – will waste millions of our tax dollars on unproven non-standard technologies (think beta-max, laser disk and HD-DVDs).
And since “Free Internet” makes for a great populist re-election sound bite, taxpayers can expect this fiasco to worsen in the weeks ahead.
Comments
By BIg Buckle on October 12th, 2008 at 4:04 pm
This whole situation has gone from bad to worse:
First it was meddling state employees trying to secretly negotiate a deal for their little branch of government to grow wild;
Now it is technology-ignorant and out-of-touch politicians being sold a big pile of crap by self-important techno consultants who want to make money without risking their own capital.
By Mark G on October 12th, 2008 at 9:42 pm
Unfortunately this posting is full of misleading information, factual errors and unsubstantiated accusations. It’s not even close. Anyone truly interested in this subject can go online and look at the testimony and documents from the state’s current and recent broadband commissions– link above. Or search SC.gov or simply google the info. Or better yet, attend the next meeting of the South Carolina Educational Broadband Service Commission.
By Marcy on October 12th, 2008 at 11:49 pm
That post lives up to your motto, but what’s really missing is the fact that AT&T is scared to death of the competition this wireless service would bring to SC, and they will do anything to stop it.
By fitsnews on October 13th, 2008 at 8:11 am
Mark G-
We’ll see you at the meeting.
-FITSNews
By G.U. Idofawkes on October 13th, 2008 at 8:43 am
Mark, the author is dead on, though there was even more back door wheeling and dealing than he realized. Your suggestion to go online and “read the documents” is dribble; the very theme of the post was that there is more to this situation than meets the eyes! What’s more all the testimony at the first committee was contradictory; half of the experts said one thing, then the others refuted them.
By StupidShouldHurtMore (SSHM) on October 13th, 2008 at 10:11 am
To Marcy:
Spot on. It’s more than just AT&T. Think about it for a moment. South Carolina, by taking this approach, is forcing the private sector to compete (more so than what they are now). Your Charters, your Time Warners, your AT&Ts, your Verizons . . . those groups . . . those massive telcos are OPPOSED to this as it would serve as additional competition.
As for the articles assessment that, and I quote, ” … new and still unproven “WiMax†receivers …,” I’d strongly encourage the folks at FITS to do a little more homework (and by homework, I mean use Google). Even Wikipedia got this one right . . . jeez.
http://en.wikipedia.org/wiki/Wimax
. . . stupid . . .
- SSHM
By Mark G on October 13th, 2008 at 10:22 am
GU, If anyone takes the time to read the testimony, or do the research, it will reveal that the proposal was a very straight-forward idea, not anything that involved free internet, secret deals, or risk to the taxpayer. But “experts” from the big telecoms fought the concept, and worked to spread many of the misconceptions in this post. They launched a campaign staffed by dozens of lawyers and lobbyists to stop the potential competition of a new wireless provider in SC, and to deny the people of SC millions in revenue and the benefits of competition. I would urge anyone truly interested in this subject to google SC Broadband or SC wireless cloud.
By Techknowogie on October 13th, 2008 at 10:45 am
Great wikipedia article – looks like Pakistan uses WiMax so we better jump on board too.
I still have not seen computers sold in stores with WiMax built in and my friend in Richmond with an external WiMax receiever from Clearwire can’t even get a signal when the wind is blowing the trees in his yard, or downstairs where a hill blocks the signal.
By Recovering Lobbyist on October 13th, 2008 at 11:20 am
Will, you clearly must be thinking of a different Dwight Loftis than the one I know. When it comes to conservatives, you won’t find a more CONSISTENT conservative than Dwight Loftis. He is conservative when others are just trying to look conservative.
By Sycophant on October 13th, 2008 at 3:40 pm
Interesting slant. Totally wrong, but still interesting. Where do I begin to correct the numerous mistakes in this Blog?
1. WiMax is not experimental. It is and has been for many years an International Wireless Standard. Specifically: IEEE (Institute of Electrical & Electronics Engineers) Standard 802.16. Since IEEE sets all International recognized standards for wireless communications, WiMax is a Standard. It has already been installed in hundreds of locations throughout the world. There is even an operational network already in place in Lexington County. The equipment is readily available for sale today!
2. Clearwire uses WiMax. Therefore, the ETV network you advocate is WiMax.
3. The Broadband Commission is not setup to build a government run free internet service. It is charged with obtaining the best deal for South Carolina, and not just the ETV.
4. No one associated with the Broadband Commission had anything to do with the firing of Moss at ETV.
5. Every action in the Broadband Commission is being held as, “Government in the Sunshine.” That is, all meetings are open to the public, and any info made available to the Commission Members are made available to the public.
6. Dwight Loftis and Bobby Harrell did not cut any deals. They are not socialist. Any review of their long records would clearly indicate that fact.
7. The State’s Broadband Commission will make the best decision for all concerned. It will be clear and clean. No back door deals, only what’s best for SC. The experts on this Commission represent some of the best minds avaiable in SC for this decision making process.
The loss of the State CIO, Jim Bryant is an unfortuante mistake that will effect SC in the future. The loss of Moss Bresnahan is the same.
Don’t start knocking something before you even know what you are talking about or where everything is going to end.
By Techknowogie on October 13th, 2008 at 4:00 pm
Check out this great video of WiMax on YouTube:
Speeds of 260 down and 45 up – almost as fast as my old 56k telephone line
No wonder the folks in Lexington are doing so well!
http://www.youtube.com/watch?v=6i3HLG8og9s
By Marcy on October 13th, 2008 at 8:04 pm
Well, being a visionary makes one suspect in SC, especially in state government. Moss moved on to bigger and better things. Jim will likely be OK too.
Seriously, a telecom lobbyist could have written this post. The truth is actually much nore interesting. AT&T and some other telecoms have been so amazingly effective at stalling this project and distracting the public with falsehoods, they should get an award. It’s actually fun to watch if you admire good, sleazy lobbying.
By Veritas on October 14th, 2008 at 9:49 am
Will is right. Wimax is not a sure enough bet to bet the future of our state on. Look at this article…
Australian WiMAX pioneer trashes technology as “miserable failure”
http://www.commsday.com/node/228
By StupidShouldHurtMore (SSHM) on October 14th, 2008 at 10:11 am
To Veritas:
Will is dead wrong about WiMAX. I will see your one story and raise you an industry of support and investment here:
http://www.wimax.com/
To Techknowogie:
About those laptops sans WiMAX . . . check Acer and now Lenovo:
http://www.wimax.com/commentary/news/wimax_industry_news/october-2008/lenovo-releases-wimax-fitted-thinkpads
. . . and we’re going to somehow label this as good ‘ole boy stuff, Will? C’mon, you’re better than that. For ONCE the state is forward-thinking and you chalk it up to anything but?
. . . stupid . . .
- SSHM
By fitsnews on October 14th, 2008 at 10:42 am
Will is right? Will is wrong? You cretins are assuming Will even wrote this.
Remember, we are legion.
-FITSNews
By The Mac on October 14th, 2008 at 3:04 pm
Will is right. This is a special interest bonanza. All the complaints back and forth in the comments mean one thing – that state needs to sell this bandwidth off already and let the market place hammer out the details
By David on November 7th, 2008 at 1:01 am
I am AMAZED at how such mis-information is published and “sold” as facts…
there is not a single correct statement in this article–
As Mark G states above – there’s no secret plan to create a state controlled
communications company – and you can view EVERYTHING state legislators do regarding EBS Spectrum and/or anything else they do – the state of South Carolina has some of the most open-to-the-public records I’ve seen in the entire country. There was never a deal with Clearwire outside of their being what is called a “proponent” of what is called a BTA – Clearwire has a WiMax network in the Charlotte, NC area – and some of our SC EBS transmitters were interfering, so Clearwire was required to foot the bill for a transition –
Read all about it at: http://www.scetv.org/education/des/why_now.cfm
By the way – I ought to know the details of all of this since I MANAGE ALL OF THE EBS INFRASTRUCTURE ACROSS THE STATE
By WhatTF?! on November 11th, 2008 at 1:17 pm
“david” has lost his mind.
if there was “no secret plan” then it only goes to show the idiots at ETV have squandered a HUGE state asset and are still COMPLETELY lost in the sauce, with their buffoonery so great that the licenses might actually lapse!
and let me guess – they were just doing it “for the kids!”
ETV is a huge and partisan waste of money and i am glad someone else it going to deal with the ed. licenses now; i just hope they have learned from this fiasco.
BTW – don’t think there was an ETV plan for selling them off? Then go the Ethics Commission and look up the list of lobbysts principals; you can see how much tax payer money was spent to sweep this all under the rug once the legislators caught on!