Telecom Reform:
Do You Know the Truth?

The Big Telecoms have spent billions to convince Congress and state legislators that they have been treated unfairly by local governments. They’ve used aggressive and misleading tactics to persuade everyone that their version of telecom reform is what’s best for America.

Don’t get bluffed! The Big Telecoms play to win. They do not have consumer interests in mind - only their bottom line! Look behind the curtain before you buy in.

Telecom Reform: The Facts vs. Big Telecom’s Bluff

Big Telecom’s Bluff: Local governments are against consumer choice.

THE FACTS:
Local governments want and encourage video cable service competition in their communities. But repeated requests for competition usually fall on deaf ears.

Over 600 Michigan communities issued invitations to AT&T asking the telephone giant to sign local franchise agreements and compete fairly for cable television customers, to no avail.

Big Telecom’s Bluff: Local governments unfairly tax the Big Telecoms.

THE FACTS:

• The telecom industry is taxed at rates significantly lower than some other industries such as the utility industry.
  
  
• In some cases, the telecom industry pays lower corporate income taxes than many “general businesses.”
  
  
• The telecom industry pays essentially the same level of property taxes as other businesses.

Big Telecom’s Bluff: Outdated rules play favorites with cable video service providers.

THE FACTS:
Although the Big Telecoms are claiming they haven’t gotten a fair deal with local cable franchising, it’s just not true. Ten years ago, telecom giants AT&T Broadband, Ameritech New Media, US West and BellSouth secured enough cable franchises to serve the entire country.

The Big Telecoms have made local franchising an issue to smokescreen their real agenda: a free ride at the expense of our communities. They just want special treatment when it comes to regulatory and tax issues.

Big Telecom’s Bluff: Local control means favoritism.

THE FACTS:
Local governments believe in fair competition. All telecommunications providers that are interested in serving a community are given the same opportunities. Local governments require that all telecommunications companies play by the same rules.