Oregonian, The

Oregon's long-simmering feud with Oracle is about to break out into open warfare. Gov John Kitzhaber (D-OR) has asked Attorney General Ellen Rosenblum to initiate legal action against the giant information technology company for its central role in the state's bungled effort to build a health insurance exchange.

The state has paid Oracle well over $130 million for the exchange, which never operated as intended. "There is ample cause there to file a lawsuit," Gov Kitzhaber said. "We were not delivered a product that worked and we certainly weren't delivered a product on time."

First Data, the firm hired by the state to assess how the Cover Oregon exchange project went so horribly wrong, blasted Oracle. "Oracle's performance is lacking," First Data said. "Their inability to adhere to industry standards and professional software and project management tenets warrant further review."

Gov Kitzhaber also reached out to officials in Washington, DC asking them to act against Oracle. In a May 29 letter, he asked the US Department of Health and Human Services to "levy the appropriate fines and penalties" against the company. He also asked Oregon's two US senators, Sens Ron Wyden (D-OR) and Jeff Merkley (D-OR) to use their clout against Oracle.

It promises to be a difficult case. With $37 billion in annual revenue, Oracle is a deep-pocketed foe.

If Portland wants Google Fiber it’s going to have to give something up. Specifically, the city is going to have to abandon the idea that Google’s hyper-fast Internet service would be available everywhere in the city.

The Portland City Council takes up a franchise agreement afternoon for Google Fiber, which wants to string fiber-optic cable across the city -- and in five suburbs -- to provide Internet connections and cable TV service. A vote is scheduled for June 11.

The company promises “gigabit” speeds -- about 100 times faster than the average US download connection. But not for everyone. The franchise allows Google to pick which neighborhoods it wants to serve. The company says it will choose areas with a critical mass of customers, what the company calls “fiberhoods,” where residents have committed to subscribe to the service.

That makes sense from a business perspective: It will cost Google hundreds of millions of dollars to build out its network in the Portland area, and it wants to see a return on its investment. Choosing the most lucrative areas gives it the best chance of recouping its money.

From the point of view of individual residents, though, it means some areas will go without. Google says it’s committed to “digital inclusion,” and will work to expand Internet access to nonprofits and people who can’t afford its top-tier service. The company sent a specialist to Portland this spring to gauge how to work with community groups, but Google Fiber isn’t bending its core, market-based approach to determining which areas to serve.

Google set politicians and netizens abuzz in February when it suggested it might bring that fiber to the Portland area, perhaps as soon as 2015.

But building a faster network could invite years of disruption as Google installs networking equipment around the city and buries fiber along suburban streets. The service could also necessitate new rules about what’s allowed in the public right of way -- and open the door to other companies installing their own gear on public property.

“There’s issues,” said Portland city commissioner Steve Novick, who runs the transportation bureau, which oversees rights of way. “But we’re very hopeful we can work out the issues.”