Wednesday, May 7, 2008

Why is Verizon censoring us? Pt. 3

While we're considering hypotheticals....

Your state builds a great new expressway that cuts 30 minutes off your daily commute. (I know... might have happened in another era. Fat chance today.)

The expressway is financed by massive bond issues. The bonds will be retired over many years by future tax revenues -- your future taxes.

But now the expressway is finished. The state finds itself strapped for funds. Leaping on the privatization bandwagon, it turns the expressway over to a mega-corporation for a pittance. The mega-corporation puts up toll booths, which increase your cost of commuting.

Fair enough, you say, the mega-corporation has taken on the costs of ownership and maintenance, they deserve fair recompense and profit.

But oddly, while you're still charged both ways, the toll is $50 per month higher in one direction.

Now how can that be fair?

Fact is, Verizon and every other Internet Service Provider benefits from massive government subsidies and investments. Verizon, for instance, has substantial real estate holdings in every city and town in their service area on which they pay no real estate taxes.

How so? Their telephone poles are exempt.

But more to the point, development of the Internet was largely financed by public money.

See: http://www.davesite.com/webstation/net-history.shtml

That said, many service providers, including Verizon, DO make substantial additional investments of their own. So there's no argument that they deserve to recoup their investments, cover their costs, and generate profit for shareholders through monthly ISP service charges.

All well and fine.

But when they censor us to further fatten their bottom lines they're stepping over the line.

How so?

Stay tuned...

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