February 2009

Lawmakers have been unsuccessful at changing confusing language in a sweeping economic stimulus bill that critics and analysts say could benefit Verizon Communications over other Internet service providers. An effort to narrow the bill's tax credit for extending Internet access to rural areas and regions without service has been stymied as the Senate moves toward a final vote on the bill. Now, congressional aides and lobbyists say the only option for changing the provision is influencing the closed-door negotiations between House and Senate lawmakers that will occur after a Senate vote. The House stimulus bill doesn't include any tax incentives for Internet investments. It is possible that the Senate's Internet tax credit proposal simply could get chucked in negotiations with House members. Senate Commerce Committee Chairman John Rockefeller (D-WV) had proposed a significant increase in the Senate bill's monetary benefits for carriers adding high-speed Internet service in places where there are few options for wiring up. But Rockefeller's amendment didn't make it in to the Senate's compromise package. Industry insiders say the Internet tax credit's vague language referencing "residential subscribers" of the highest-speed Internet services could be a huge benefit to Verizon because its fiber-based Internet offering for homes comes the closest to meeting the download speeds needed to qualify for the credit.

As President Barack Obama prepares to give his first prime-time news conference tonight to sell his economic stimulus package to the public, he finds himself fighting this political battle without one of his most powerful weapons: TV advertising. During the campaign, Obama's extraordinary fundraising gave him the ability to communicate to the public directly through his TV ads. Since the start of the general election, he spent, on average, $11 million per week communicating with voters through TV. This unfiltered messaging proved to be one of candidate Obama's biggest strengths last fall. Since he took office in January, however, Obama has relied on a series of press conferences and the usual presidential forums to get his message to the American public. This strategy allows members of the opposition, as well as the press, to filter the information. As seen by the PR difficulties faced by the president regarding his stimulus package, it prevents Obama from effectively selling his product on a mass scale like he was able to do as a candidate.

As Congress debates an economic stimulus package that includes funding to boost the number of people in the United States with broadband Internet access, at least one organization says access alone isn't enough--and it's urging the Obama administration to adopt strategies to stimulate broadband demand. The Benton Foundation, a private foundation that works to ensure media and telecommunications serve the public interest and enhance democracy, issued its urgent call to action--titled "Action Plan for America: Using Technology and Innovation to Address Our Nation's Critical Challenges"--before Congress drafted its stimulus legislation. The report has taken on new importance, however, as broadband funding has become mired in a tense political debate on Capitol Hill.

Illinois residents are over-paying their phone bills by almost $575 a year, according to a report released Tuesday by the Citizens Utility Board. The utility watchdog analyzed more than 32,000 local, long-distance and cell phone bills of Illinois consumers and found that the majority are paying for minutes and services they don't need. The CUB report determined that the average Illinois customer could save $187.15 a year by switching to cheaper local calling plans like "Consumer Choice" and by dropping services like "line-backer," which covers wire repairs that typically are needed only every 20 to 30 years. Long-distance callers could save about $60 annually by changing to lower-cost providers that charge less than 3 cents a minute for long-distance calls, the CUB study determined. AT&T and other national carriers typically charge 5 cents to 10 cents a minute for the same calls, Mr. Kolata said. Cell phone users waste an average of $308.28 a year on unused minutes and unnecessary plan upgrades like roadside assistance, according to the CUB report. Mr. Kolata said typical cell phone users pay for 420 unused peak minutes every year. The collective savings on phone services, he said, could add up to a $1.5-billion boost to the Illinois economy if all residents trimmed their bills based on CUB's recommendations.