BellSouth doesn't see it that way. In what's becoming a common refrain, the telecom cited unfair competition from government and added that under normal conditions ' without its state of emergency status ' New Orleans would be violating state law.
It's a story Lafayette knows well. BellSouth has been a driving force of opposition ' along with Cox Communications ' against Lafayette Utilities System's proposed fiber-to-the-home network. The public utility company's plan to build out fiber optics throughout the city and offer phone, cable and high-speed Internet is awaiting resolution of a lawsuit filed by BellSouth.
City-Parish President Joey Durel, who has made the LUS initiative a cornerstone of his administration, plans to work with New Orleans city officials to remove all barriers to municipalities competing with incumbent telecommunications companies. He says the laws have been abused by BellSouth and used as delay tactics.
Under Louisiana's Local Government Fair Competition Act, municipalities are prevented from offering phone, cable or Internet service faster than 144 megabits per second without first going through a series of steps that include conducting a feasibility study and holding public hearings and a referendum on the issue. The law also sets parameters over a municipality's ability to fund such a project.
In an unusual twist last year, BellSouth and LUS worked together with lawmakers to shape the legislation. "It turns out it was just a ploy," says Durel. "[BellSouth] is abusing that bill now to do what they're doing, and it's ultimately going to prevent New Orleans from doing something wonderful for their community. What we need to do more than anything is work with the New Orleans delegation and our delegation and get that law repealed. We negotiated in good faith. We compromised on some things that we would not have compromised on if we had known that these people were not sincere."
It remains unclear whether the state law, which refers to local governments who provide telecommunications services "to one or more subscribers," would apply to a government that is offering a free Internet service, without any paid subscribers. However, New Orleans city officials have indicated that they are interested in challenging the law.
BellSouth New Orleans spokesman Merlin Villar says the company understands the city's need to "jumpstart revitalization," but it believes that the city's current operation goes against the law.
"As a general matter," he says via e-mail, "our position consistently has been and remains that government-owned wireless networks should operate by the same rules as other communications service providers including wireless, telecom and cable providers. There are laws in place in Louisiana ' including the Local Government Fair Competition Act and rules promulgated by the Louisiana Public Service Commission ' which prevent cross subsidization and other anti-competitive activities. These laws were designed to create a level playing field in these competitive industries. We would hope that the city acknowledges its intention to follow these laws."
New Orleans city officials claim that BellSouth's opposition to their wireless network has been so fierce that the company rescinded an offer to donate one of its damaged buildings to the displaced New Orleans Police Department because of it.
New Orleans Chief Technology Officer Greg Meffert told the Washington Post last Saturday that New Orleans' wireless network represents a "once-in-a-century opportunity to truly show the entire world what can be, instead of just what is, and help write future history in the process. It's a damn shame they [BellSouth] don't see that."
The comments echo the harsh words Lafayette officials recently had for BellSouth officials. Last week, Durel and a team of supporters took out a full page newspaper ad and published an open letter to BellSouth executives, deriding the company as a "corporate Goliath" that "attempts to derail what our voters have said is best for our community."
Lafayette city voters approved the sale of $125 million in bonds to fund the project in July, following a lawsuit from Cox and BellSouth. Since the election, LUS has won its right to proceed as planned in battles before the state Public Service Commission and in district court. BellSouth recently appealed the district court decision.
Lafayette City-Parish Attorney Pat Ottinger says he hopes the suit does not drag on beyond spring. If BellSouth loses its appeal in appellate court, it could appeal to the state Supreme Court, which would then have to decide on whether or not to hear the case. BellSouth also has until Dec. 12 to challenge the PSC's rules governing LUS' accounting procedures, which could further delay the project.
Durel says that BellSouth's persistent objections to the city's plans aren't helping the company. "I think that locally they've done all the damage they can do to themselves," he says. "The real goal of [the open letter] was to hopefully get [CEO] Duane Ackerman to wake up and realize that they're not doing themselves any favors with their public image and that Louisiana needs a hand up, not somebody whose keeping their thumb on us."
For longtime proponents of Lafayette's fiber optics project, like John St. Julien, who maintains the blog site www.lafayetteprofiber.com, the current situation in New Orleans represents "a pretty obvious opportunity" for the two cities to come together and fight for their common interests.
"If you could put the Acadiana delegation together with the New Orleans delegation you could have a real voting bloc," St. Julien says. "If there was no law then [LUS] wouldn't be in court right now. If that law could be wiped off the books all these legal objections would be washed out. There'd be no stopping us. We need to have the freedom to compete and deregulate. Take all the restrictions of who can compete out. That would be the real solution."
Durel insists that changing state law will be of greater benefit to other communities. "Lafayette's going to get this done. Whether they delay it another year or so [remains] to be seen. For other communities to get it done is going to be nearly impossible [under the existing law].
"We could have been wireless a year ago," he adds. "But with everything else we were doing it was just not worth additional burden on the group of people that are working on the fiber."
The long struggle for LUS hasn't been cheap. It has spent $1.5 million on studies, public information campaigns and legal fees for the project, according to LUS Director Terry Huval. In the past two months alone, LUS has paid $59,488 in legal fees for work related to its fiber project.
Although interest rates have also been on a slight rise since LUS began proceeding with its plans, Huval says the actual material cost of the fiber has been going down, and the overall cost of the project remains roughly what was accounted for.
"I don't think the dollar amount is the big issue as much as it is the delay," says Durel. "If BellSouth or Cox had never gotten in the way of this and tried to put the hurdles up that they have put, we would already be servicing our first customer. How much does it cost us not to have this going? How much does it cost Lafayette and Louisiana as other communities see what we've been doing and they start trying to do this themselves? We can either lead or we can follow, and we have an opportunity to lead right now and to be a spotlight for the nation."
Despite sweeping changes enacted by Gov. Bobby Jindal's administration, the health insurance program for state workers and public school employees will have to use $88 million from its reserve fund to cover its costs this year.
The LPSB races are sure to get heated between now and Nov. 4, and with only 9 available seats, this year's field of 20 candidates will surely be wanting to set themselves apart from the crowd early; they'll get their chance next week, starting Tuesday with the kick-off of a three-day series of candidate forums.
Lawmakers say they've received complaints that waits have spiked, with people being forced to wait in line for more than an hour — and sometimes three hours — to handle routine tasks.
The campaign announced that Rep. Stuart Bishop of District 43 and Nancy Landry, District 31, have thrown their support behind the Naval Academy graduate and entrepreneur in his bid to unseat current Hunter Beasley in District 8.
A Lafayette man with an alleged taste for child porn was busted Thursday evening during a cyber crime sting launched by the Attorney General’s Office.
U.S. Rep. Vance McAllister says his chief of staff is on temporary leave after being booked with drunken driving.
It was a rare moment in Congress this week as Republicans briefly put aside partisanship in support of President Barack Obama's request to train and arm Syrian rebels, and while a number of Democrats opposed the measure, Louisiana's Democratic Sen. Mary Landrieu found herself on the same side of the issue as her Republican challenger Rep. Bill Cassidy.
Home Depot breach bigger than Target; Alibaba IPO could be big; Rivers' last project and more national and international news for Friday, September 19, 2014.
Friday's Blogs from the Bog!
City-Parish President Joey Durel is asking the council to sign off on a resolution approving a pair of deals that would lead to razing the seedy Lesspay Motel at Four Corners to build a new police substation as well as transforming nearly a block Downtown where the old federal courthouse building now molders into a mixed-use development.
In 2013, the IRS — already the least popular governmental agency in the country — became the target of intense investigations after it was revealed that they had specifically and improperly scrutinized applications for tax-exempt status from organizations associated with the nascent Tea Party movement.
Improving the running game was "a point of emphasis" during the offseason and the results have manifested themselves in the form of substantially greater production.
Louisiana's health department said Wednesday that its evaluation of the state's Medicaid privatization was on target, despite criticism from the legislative auditor that it lacked key data and contained inconsistencies.
The feds converge on your office, seizing records on several employees as part of a pay-for-plea investigation. WWYD? If you’re Mike Harson, you give yourself a $12k raise.
It’s football season and after back-to-back winless weekends for the Saints and the Cajuns many citizens are finding it difficult to be civil much less happy. Well, chew on this.
Considering his repeated stays in the local penal system, David Narcisse Jr. should have known that having a semiautomatic shotgun, even one given to him by a friend, wasn’t the brightest of ideas.
A state district judge on Tuesday threw out a last-minute retirement hike lawmakers gave to the state police superintendent, ending a political firestorm over a pension boost passed without public scrutiny on the last day of the legislative session.
The House has passed a bill to increase oversight of veterans' hospitals under construction, following a report that some medical centers take three years longer to complete than estimated and cost an extra $366 million per project.
An obvious follow-up question for any Republican politician who accuses Democrats of being science deniers is one about science, to which Jindal bobbed and weaved like a welterweight champ.
The Lafayette City-Parish Council is expected to decide tonight (Tuesday) whether to go along with a proposal City-Parish President Joey Durel made in February’s State of the Parish Address and consolidate taxes for mosquito control and the parish health units into a broader tax program that would also cover animal control.
U.S. District Judge Richard Haik has dismissed Greg Davis’ lawsuit against the LPSB, yet in his ruling, the federal judge doesn’t bite his tongue in pointing out the "threat" being posed by certain board members.
Of all the political offices being contested throughout Lafayette Parish, the race for Broussard’s top police post has literally become one of the most heated.
A state district judge is deciding whether to issue an injunction against the enforcement of a last-minute retirement hike that lawmakers gave to the state police superintendent.
A new website is up for Louisiana's state government employees and retirees to choose their health insurance plans for next year, a choice they must make by October.
That fact that New Orleans led both games in the final 10 seconds of regulation, and lost each by a field goal or less, is of little solace.