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Rendell’s Real Legacy: High Taxes, Low Ratings And Clenched Teeth

It was a December night, late 90’s.  My entire family was in downtown Philadelphia taking in the Christmas attractions.  One of our traditions was marveling at the magnificently decorated, larger-than-life tree in the City Hall courtyard.  But when we arrived, the gates were locked.

Viewing the tree wasn’t going to happen.

Disappointed, we started walking away when none other than the Mayor himself came bounding out of City Hall right next to us, clearly in a hurry.  But he saw us, turned around, and shot the bull for several minutes.  Upon hearing our plight, he immediately summoned a police officer from his detail and instructed him to take us up to his office, which “has the best view of the tree,” for as long as we wanted.

That tree never looked so beautiful.

And through it all, that Mayor never asked us our names or where we lived.  Whether or not we were voting constituents had absolutely no bearing on him.  He instinctively did what he thought was right, in much the same way he operated while an Assistant District Attorney, and later, the City’s DA.  He was one of the good guys.

And after his two relatively successful terms as Mayor, hopes that he would lead Pennsylvania in the right direction were not unfounded.

But after eight disastrous years as Pennsylvania’s Governor, Ed Rendell being viewed as a “good guy” is as likely as the Eagles’ winning this year’s Super Bowl: nonexistent.

*****

Up to this point, his legacy was known for three things: the introduction of gambling, which did not live up to the promise of tax-relief; huge tax hikes, coupled with a 40 per cent increase in state spending; and a perception of widespread pay-to-play within his Administration. Of lesser note but still sore subjects were his signing an unconstitutional legislative pay raise and not getting a single budget passed on time — budgets that were full of smoke and mirrors, such as imaginary revenue from the failed I-80 tolling plan.

But now, the image of Rendell that is etched in people’s minds is the Governor blowing his top during one of his final interviews. 

With teeth clenched in a menacing growl, he karate-chops the air and literally screams at 60 Minutes interviewer Lesley Stahl that … “You guys don’t get that. You’re simpletons. You’re idiots if you don’t get that.”   He was defending his position that gaming was good for Pennsylvania, under the rationale that if gamblers are going to lose their paychecks anyway, it’s better for state coffers if they lose them in Pennsylvania.

Truth be told, Rendell’s anger wasn’t really directed at Stahl.  An intelligent man, the Governor is all too aware that, under his watch, the state earned points in all the wrong categories: some of the highest taxes in the country; the nation’s most hostile legal system, causing doctors and companies to flee; a failing educational product; the country’s worst roads, and a decimated manufacturing base.

Pennsylvania’s biggest export is its children, and that, more than anything, has extinguished the hope for a better tomorrow under Rendell.

But if there is ever to be a turnaround, the time is now. Republican Attorney General Tom Corbett will be the state’s new Governor, a leader who has promised to run Pennsylvania in the mold of New Jersey’s Chris Christie.  And he definitely has the horses to accomplish his agenda: the Senate is solidly Republican, and the State House saw a thirteen seat swing to give the GOP a double-digit majority.

Many analysts postulated that Dan Onorato was defeated in the Governor’s race, and the Democrats lost control of the State House, because of the national Republican tidal wave, with Rendell playing little role in that result.

Nothing could be further from the truth.

In the off-year elections of 1994 and 2010, newly elected Democratic Presidents pushed unpopular policies: Clinton with national health care and gays in the military, and Obama with universal healthcare, cap-and-trade and the stimulus. In both cases, Republicans took advantage of the momentum and captured the U.S. House of Representatives and numerous Governorships, including the gubernatorial victories of Tom Ridge and Tom Corbett in Pennsylvania. 

The State House was a different story. In 1994, the outgoing Governor, Bob Casey, Sr., was a popular conservative Democrat, and his influence helped the Dems maintain their slim majority. But Rendell was an albatross around the neck of Onorato, his protégé, and Democratic incumbents statewide.  Given that Corbett made Rendell’s legacy the focal point of his campaign, the Governor bears the most responsibility for his Party’s shellacking.

It’s legacy time for the Governor, and his approval ratings are downright dismal: twenties throughout much of the state and only thirties in his home base of Southeastern Pennsylvania. Poll numbers don’t lie, so when the vast majority of people say that Rendell’s eight years at the helm were a disaster, the realization of failure sets in, and backlashes occur — hence the uncontrolled outburst on 60 Minutes.

Perhaps the most surprising aspect of Rendell’s unpopularity is that it occurred despite the media’s cozy relationship with the Governor.  That free pass culminated when…

Read the rest and post a comment at Philly Magazine’s Philly Post:

http://blogs.phillymag.com/the_philly_post/2011/01/11/rendell%e2%80%99s-legacy-high-taxes-low-ratings-and-clenched-teeth/

Chris Freind is an independent columnist, television commentator, and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newsApapers, and in Dick Morris’ recent bestseller “Catastrophe.”

Freind, whose column appears nationally in Newsmax, also serves as a guest commentator on Philadelphia-area talk radio shows, and makes numerous other television and radio appearances, most notably on FOX.  He can be reached at CF@FreindlyFireZone.com

 

 

 

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January 11, 2011 at 11:14 am Comments (0)

Chambers Of Horrors: Chambers of Commerce Have Sold Their Soul

Chambers Of Commerce Have Sold Their Soul

“The Greater Philadelphia Chamber of Commerce is dedicated to promoting regional economic growth…and advancing business-friendly public policies.”

So says the Mission Statement of Philadelphia’s Chamber of Commerce.

It further states that it is, “dedicated to supporting and encouraging the continued growth” of its members by striving “to influence business-friendly legislation in all levels of government, participate in initiatives to improve education and the community.”

And its Public Policy department is supposed “…to address pro-business legislation directly with the policy-makers who can make a difference.”

Wow.

If only the Chamber put just a small fraction of that mission into reality, maybe Philadelphia wouldn’t be such a dismal place to live and work.

But the city Chamber is not alone in selling out its members.

Last month, the Montgomery County Chamber, in an act that defies belief, issued a “Lifetime Achievement Award” to Governor Ed Rendell at a “Celebration of Excellence” event. 

It’s no small point that Rendell, more than anyone, is responsible for the carnage that is Pennsylvania’s economy.

*****

Chambers of Commerce are, and should be, non partisan.  They should work with, and support, candidates who advocate pro-business policies.  Even more important, they should be vocal —and unified —in opposing those who favor policies contrary to their mission.

Call me crazy, but Ed Rendell fits into the latter category.  Of this, there can be no dispute.

Maybe Rendell’s vision has been shaped by the belief that government knows best, and wealth should be redistributed from those who work to those who don’t.

Or maybe it’s because he’s been on the public dole for virtually his entire working life, which certainly gives one a different perspective from those in the private sector creating jobs, meeting payroll, and growing the economy.

Either way, Rendell’s policies should have been opposed at every turn by the Chambers, whose primary responsibility is to fight for a pro-business legislative agenda.

But too many didn’t.  And for a Chamber of Commerce, even one sell–out is one too many.

In the Montco Chamber’s case, maybe leader Al Paschall wanted to be liked by Rendell; maybe it was an ego boost to have the Governor know his name.

That’s fine if you’re a regular citizen, but not if you run a Chamber of Commerce.

So how could Rendell, of all people, have earned anAchievement Award?

 Difficult to answer, given the governor’s fiscal record.  Consider:

Read the rest of Freindly Fire’s column at:

http://blogs.phillymag.com/the_philly_post/2010/05/12/chambers-of-horrors/

Chris Freind is an independent columnist and investigative reporter who operates his own news bureau, www.FreindlyFireZone.com

Readers of his column, “Freindly Fire,” hail from six continents, thirty countries and all fifty states. His work has been referenced in numerous publications including The Wall Street Journal, National Review Online, foreign newspapers, and in Dick Morris’ recent bestseller “Catastrophe.”

Freind also serves as a weekly guest commentator on the Philadelphia-area talk radio show, Political Talk (WCHE 1520), and makes numerous other television and radio appearances.  He can be reached at CF@FreindlyFireZone.com

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May 12, 2010 at 3:42 pm Comments (0)

Consumerist awards Comcast the Golden Poo

The Consumerist has determined that Philly-based Comcast is the worst company in America this year, and has awarded Comcast the “Golden Poo” award.

poopComcast

The Consumerist cites “horrendous service, exorbitant costs, throttled internet and plans to acquire NBC Universal”. I’m not sure what the NBC acquisition as to do with the price of tea in China, but the other stuff sure sounds bad.


April 28, 2010 at 12:45 pm Comments (0)

Rendell: Always Sticking His Nose Where It Doesn’t Belong

Rendell: Always Sticking His Nose Where It Doesn’t Belong

Gov. Should Not Try To “Partner” With The Media

BY CHRIS FREIND

Ed Rendell just doesn’t get it.

Pennsylvania’s Democratic governor has always had a long history of sticking his nose where it doesn’t belong, but an article in the Aug. 24 New Yorker magazine confirms that Rendell either doesn’t know about the line between government and the media — or just doesn’t care.

It was reported that Rendell had approached billionaire New York City Mayor Michael Bloomberg last year to buy the financially ailing Philadelphia Inquirer and Daily News. Mr. Rendell was quoted as saying, “We discussed a few things, and I tried to convince him to come down and buy The Philadelphia Inquirer and the Daily News.”

After being questioned on his statement, a Rendell spokesman said the governor was just kidding.

Sure he was.

After all, joking about the Inquirer’s demise ranks among the funniest things in the world.

If Fast Eddie didn’t have a track record of wildly overstepping his boundaries, maybe his “joke” excuse would be believable.

Consider:

Earlier this year, Rendell publicly scolded the Sunoco oil company for its decision to lay off 750 workers, calling the company’s action “unconscionable.” Yet he didn’t say a word about the 3,000 layoffs — four times the number at Sunoco — that Comcast has executed in the past year.

Could that disparity have something to do with the amount of campaign money both entities contributed to the governor?

Since the 2002 election, Sunoco’s political action committee (PAC) contributed $55,000 to Rendell.

During that same time period, Comcast’s PAC, its employees, and the spouses of its top executives, have donated $634,350, with Comcast spending an additional $100,000 on the gov’s inauguration festivities in 2007.

But beyond the money trail, the larger question is why a governor is budding into the business affairs of a private-sector company. One of the fundamental principles of this country – at least until recently – is that businesses be allowed to operate free of government interference. Public officials and bureaucrats have no right to force their way into affecting corporate policy because they happen to disagree with a company’s internal business decisions.

Worse than that, however, has been Rendell’s foray into the news media.

The Fourth Estate, as the media is known, is afforded constitutional protections that allow it to be the independent watchdog for America. Once the line is crossed between a media entity and a government official discussing a partnership, all credibility is irreparably lost, on both sides. Attempting to say that such a close relationship would not affect unbiased and objective reporting is simply ludicrous.

But that’s exactly what Rendell has been doing.

Before the current owners of the Inquirer and Daily News bought the papers in 2006, the governor had approached billionaire Ron Burkle, urging him to make a bid. Burkle, a huge player in Democratic politics, contributed $10,000 to Rendell, and another $100,000 to the state Democratic Party. Additionally, he had raised over $1 million for Hillary Clinton.

Oh, and he also contributed $20,000 to the Philadelphia Future PAC, which makes this deplorable situation come full circle.

The Philadelphia Future PAC pumped $471,000 into the Rendell coffers, and is registered at the offices of the Ballard Spahr— the law firm where Rendell worked before being elected governor.

The PAC’s treasurer is David Cohen, arguably the governor’s closest ally, and Executive Vice President at Comcast. Cohen, who has contributed $80,000 to Mr. Rendell, is a longtime Rendell confidant and fundraiser, serving as chief of staff when Mr. Rendell was mayor of Philadelphia. Prior to joining Comcast, Mr. Cohen served as chairman of Ballard Spahr. Cohen’s wife Rhonda donated $156,000 to the governor.

Ballard, which provides legal counsel to Comcast, has come under intense media and legislative scrutiny for the frequency and amount of the secretive no-bid contracts it has received under the Rendell administration. The firm has contributed $481,000 to the governor’s campaigns, with its attorneys donating an additional half million dollars. The address on Gov. Rendell’s campaign finance reports is the 51st floor of 1735 Market Street in Philadelphia — where Ballard Spahr occupies the entire floor.

Mr. Cohen also serves as chairman of the Greater Philadelphia Chamber of Commerce.  Despite Mr. Rendell’s unprecedented intrusion into the private business sector by his attack on Sunoco, a major Philadelphia employer and chamber member, no action was taken by the chamber to defend the company.

See a pattern here?

So it shouldn’t have come as a surprise when yours truly broke the story earlier this year that Rendell was engaged in talks with Brian Tierney, publisher of the Inquirer and Daily News, for a taxpayer-funded bailout for the papers. At Gov. Rendell’s request, meetings also took place that explored the two largest state pension funds bailing out the newspapers.

After a public uproar, Philadelphia Media Holdings, which owns the papers, filed for bankruptcy.

Despite criticism from the Wall Street Journal, which called taxpayer-bailouts for newspapers “the worst bailout idea so far,” George Will’s syndicated column, and the Dick Morris’ New York Times bestseller Catastrophe, Mr. Rendell still doesn’t see anything wrong with exerting his influence in the private sector.

Undoubtedly, he would have been better off focusing on the duties for which he was elected. If he had, Pennsylvania wouldn’t be facing a $3.2 billion deficit, and his approval rating wouldn’t stand at a dismal 39%.

The governor’s repeated efforts to be an integral part of the very media charged with covering his performance is repugnant. If he wants to be part of a newspaper upon leaving office, good for him. But until that time, he needs to do his job— and hopefully the rest of the media will do the same.

Chris Freind, author of “Freindly Fire,” is an independent newspaper columnist whose readers hail from six continents, thirty countries, and all fifty states. His home publication is The Philadelphia Bulletin. He can be reached at CF@FreindlyFireZone.com

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August 21, 2009 at 7:26 am Comments (0)

Open Letter To Gov. Rendell: Why Your Approval Rating Is So Dismal

Open Letter To Gov. Rendell: Why Your Approval Rating Is So Dismal

BY CHRIS FREIND

Dear Gov. Rendell:

I noted with interest that your current approval rating stands at just 39% — the lowest point in your career. Despite denying my repeated requests for a one-on-one interview, I nonetheless offer my thoughts as to why you have fallen out of favor with so many Pennsylvanians.

Conflicts Of Interest

First and foremost, the citizens of the Keystone State are fed up with what they see as huge conflicts of interest permeating every level of your Administration, with you being the focal point of many.

The appearance of a governor showing favoritism and special treatment to his big-dollar political donors, close friends, campaign fundraisers, and, perhaps most disturbing of all, one’s former law firm, raises eyebrows and sinks people’s faith in government.

For example, Ballard Spahr, the law firm where you worked from 1999 to 2002, billed a total of $25,000 in legal fees to the Delaware River Port Authority (DRPA) in the three years which preceded your election as governor. Since then, Ballard has billed over $3 million. Considering that you were the self-appointed Chairman of the Authority during this bonanza time for Ballard, many still wonder at this peculiar arrangement.

Making matters even more suspect, your former Chief of Staff, John Estey, voted on your behalf as the Chairman-designate at virtually every meeting. Since you made him the outright Chairman three months ago, he continues to vote to receive and accept Ballard Spahr’s legal bills to the DRPA. As a partner at Ballard, Estey is, therefore, voting to put money into his own firm’s coffers — a situation that offends many of your constituents and would never fly in the private sector.

Additionally, Mr. Estey is also the chairman of the Philadelphia Regional Port Authority (PRPA), an agency of the Commonwealth which you control. Not surprisingly, Ballard Spahr also happens to be the PRPA’s outside counsel.

But what takes the cake is Ballard Spahr performing nearly $800,000 worth of legal work for the Pennsylvania Turnpike privatization initiative with no contract. That’s not a no-bid contract, mind you. It’s no contract at all. Must be nice to be Ballard Spahr.

From assisting Al Boscov (of Boscov’s department stores) with a $35 million taxpayer-funded bailout, after Boscov and his family contributed $164,000 to your campaigns, to awarding a no-bid contract to a Houston law firm, whose lead partner donated $91,000 to your campaign efforts, an increasing number of Pennsylvanians are, quite frankly, skeptical of your integrity. Addressing that should be your first priority.

Your Comcast “High-Speed” Connection

Earlier this year, you publicly scolded the Sunoco oil company for its decision to lay off 750 workers, calling the company’s action “unconscionable.” Yet you were notably silent concerning the 3,000 layoffs — four times the number at Sunoco — that Comcast has executed in the past year.

Why the disparity? A look at the campaign money trail might well provide the answer.

Since your 2002 election, Sunoco’s political action committee (PAC) contributed $55,000 to your campaign, with Sunoco employees donating an additional $2,650.

During that same time period, Comcast’s PAC, its employees, and the spouses of its top executives, have donated $634,350 to you. Additionally, Comcast spent at least $100,000 on your inauguration festivities in 2007, being designated a“Benefactor,” the highest level of contributor.

One of your closest allies, Comcast Executive Vice President David Cohen (and your former Mayoral Chief of Staff), has contributed $80,000 to your campaigns. His wife, Rhonda, donated an additional $156,000. Interestingly, Mr. Cohen served as chairman of Ballard Spahr prior to joining Comcast. (Comcast is represented by Ballard Spahr).

Speaking of Ballard Spahr, the firm has contributed $481,000 to the your campaigns, and its attorneys donated an additional half-million dollars. Also, the Philadelphia Future Political Action Committee, registered at the Ballard office, pumped $471,000 more into your coffers. Mr. Cohen serves as that PAC’s treasurer.

And the address on your campaign finance reports is the 51st floor of 1735 Market Street in Philadelphia — where Ballard Spahr occupies the entire floor.

It all ties together, doesn’t it?

No New Taxes

Being a member of the media means that I’m not very bright, but pushing for new taxes might not be the best idea for winning the budget fight. We have never taxed ourselves into prosperity, but to increase tax rates during a severe recession is simply ludicrous. Your budgetary math has been fuzzy, to say the least, further reinforcing the notion that you are completely out of touch with reality.

Just one more suggestion. The next time someone asks you the amount of your paycheck, you probably shouldn’t answer, “I wouldn’t have a clue what I get paid in a month.” It doesn’t come across too well for the 99.9% of Pennsylvanians who do actually need to know what their income is. After all, they have budgets to balance.

Your Teflon is fading, Governor. You need, for once, to forget your own interest and think of those whom you swore to represent. It’s time to get Pennsylvanians working again and re-instill a faith that their governor is a man of integrity.

Otherwise, the only legacy you will leave will be one of greed and personal ambition.

Chris Freind can be reached at CF@FreindlyFireZone.com

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August 5, 2009 at 12:02 pm Comments (0)

Comcast and Rendell: A High-Octane Connection

Comcast and Rendell: A High-Octane Connection

Conflicts of Interest Pervade the Relationship

BY CHRIS FREIND

Democratic Gov. Ed Rendell’s recent decision to criticize the Sunoco oil company for laying off 750 workers raises a number of intriguing questions. While the governor saw fit to hold a press conference solely to excoriate Sunoco, calling the company’s decision “unconscionable,” he has been notably silent concerning 3,000 layoffs — four times the Sunoco amount — which Comcast has executed in the past year.

Since the governor’s election in 2002, SUN PAC, the Sunoco political action committee, has contributed $55,000 to Mr. Rendell, with Sunoco employees donating an additional $2650.

During that same span, Comcast’s PAC, its employees, and the spouses of its top executives donated $634,350 to the governor. Additionally, Comcast spent at least $100,000 on Mr. Rendell’s inauguration festivities in 2007, being designated “Benefactor” by the governor, the highest level of contributor.
The David Cohen Factor

The governor’s closest ally at Comcast is Executive Vice President David Cohen, who has contributed $80,000 to Mr. Rendell. Mr. Cohen is a longtime Rendell confidante and fundraiser, serving as Chief of Staff when Rendell was Mayor of Philadelphia. Prior to joining Comcast, Cohen was Chairman of the Ballard Spahr law firm, where Mr. Rendell worked while campaigning for governor. Ballard, which provides legal counsel to Comcast, has come under intense media and legislative scrutiny for the frequency and amount of secretive no-bid contracts it has received under the Rendell Administration. In addition, it received almost $800,000 for work on the Pennsylvania Turnpike without any contract.

Ballard Spahr LLP has contributed $481,000 to the governor’s campaigns, with its attorneys donating an additional half million dollars. Also, the Philadelphia Future political action committee (PAC), registered at the Ballard offices and whose treasurer is Mr. Cohen, pumped $471,000 into the Rendell coffers.

The address on Gov. Rendell’s campaign finance reports is the 51st floor of 1735 Market Street in Philadelphia. Ballard Spahr occupies the entire floor.

Cohen also serves as Chairman of the Greater Philadelphia Chamber of Commerce. Despite Mr. Rendell’s unprecedented intrusion into the private business sector by his attack on Sunoco, a major Philadelphia employer and Chamber member, no action was taken by the Chamber to defend the company.

The Comcast High Speed Money Connection

The Comcast money trail doesn’t end with Mr. Cohen. Ralph Roberts, Comcast’s founder, his son Brian, who serves as Chairman and CEO, and several other executives are strong Rendell backers. The elder Roberts contributed $52,500, and the son, $48,500. Comcast Chief Operating Office Stephen Burke donated $32,000.

According to Department of State records, the spouses of Comcast executives also made high-dollar contributions to Mr. Rendell. Rhonda Cohen donated $156,000, and the Roberts’ wives, Suzanne and Aileen, respectively, combined for another $25,250. Gretchen Burke contributed $5000.

The Comcast Corporation PAC contributed $93,500 to Rendell campaigns.

Rendell: On The Comcast Payroll

In addition to his $145,000 salary as governor, Mr. Rendell has also worked as a part-time football commentator for Comcast, earning a reported $20,000 per year. This arrangement has led many to question the apparent conflict, but the governor simply brushes off such criticism. As governor, Mr. Rendell has also collected a paycheck from the University of Pennsylvania, where Cohen serves as the Chairman-elect on the Board of Trustees, for his services as a lecturer. The university is a recipient of substantial state aid.

Comcast Aid: An End Run Around the Legislature

In constructing its new Center City headquarters, Comcast executives lobbied the state government for financial assistance. The firm sought a Keystone Opportunity Zone (KOZ) designation for its building, which would have provided local and state tax relief. Despite the fact that KOZ’s are intended to spur development in areas of blight, not prosperous Center City locations, the $30 billion company almost succeeded with the help of Gov. Rendell. Had the Comcast effort prevailed, the company would have been exempt from state and local business taxes until 2015.

Ultimately, the Pennsylvania legislature defeated the efforts of Comcast and the governor.

The governor then made an end-run around the legislature, funneling nearly $43 million in taxpayer money to aid Comcast and pay for infrastructure near the Comcast building, prompting outrage from many. Comcast’s direct incentives were nearly $13 million.

The economic development funds equated to roughly 10% of the building’s cost.

A Cynical Public

At a time when political corruption trials, pay to play scandals and conflicts of interest are rampant, polls show a public with an increasingly cynical view of their government and elected officials. The Pennsylvania legislature has responded by introducing a number of bills aimed at how state contracts are awarded.

Under the Rendell Administration, over $1 billion in no-bid contracts have been awarded.

Chris Freind can be reached at cf@thebulletin.us

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March 28, 2009 at 2:15 pm Comments (0)

Does Comcast Phone Service Violate FCC Rules?

Commission Questions Whether The Philly-Based Company’s Internet Phone Has Unfair Advantage
By Chris Freind, The Bulletin

The Federal Communications Commission (FCC) has mandated that Philadelphia-based Comcast Corporation submit a response by Jan. 30 to questions regarding the company’s broadband network management practices. 

The government expressed concern that Comcast could be operating as an unregulated telecommunications company, providing it with a competitive advantage on an unlevel playing field. It also sought answers as to why the company had “omitted from its filings to the commission” information related to its Internet phone service.

In a Jan. 18 letter, the FCC wrote it seeks clarification “to an apparent discrepancy” between Comcast’s earlier broadband network filing and its “actual or advertised” practices.

 The sound quality of Voice over Internet Protocol (VoIP) phone calls placed over the network during periods of congestion presents a serious issue.  Comcast stated that consumers may find that VoIP calls “sound choppy” during busy times, and an appendix of the filing draws no distinction between Comcast’s own VoIP offering and those offered by its competitors.

According to the FCC, however, Comcast’s Web site suggests “such a distinction does in fact exist,” as the Web site claims that “Comcast Digital Voice is a separate facilities-based IP phone service that is not affected by this (new network management) technique.”

The government agency asked Comcast to clarify its business practices regarding VoIP. “We request that Comcast explain why it omitted from its filings to the Commission the distinct effects that Comcast’s new management technique” has on the company’s VoIP offering versus that of its competitors, the FCC wrote. It also asked for “a detailed justification for Comcast’s disparate treatment of its own VoIP service,” as compared to that offered by other VoIP providers on its network.

The FCC further requested detailed information as to how Comcast’s Digital Voice service was “facilities-based” as well as how that offering used Comcast’s broadband facilities.  In particular, the FCC was interested in ascertaining whether Comcast Digital Voice affected network congestion in a manner different from other VoIP services.

The “discrepancy” the FCC refers to could have significant implications for Comcast because its distinct phone service could potentially classify it as a telecommunications company. Such a decision would subject it to a whole new set of government rules and regulation.

In the letter, the FCC stated, “Given that Comcast is apparently maintaining that its VoIP service is a ‘separate facilities-based’ telephone service that is distinct from its broadband service, and differs from the service offered by ‘VoIP providers that rely on delivering calls over the pubic Internet’ (according to Comcast’s website), it would appear that Comcast’s VoIP service is a telecommunications service subject to regulation under the communications act.”

As a result of the FCC’s position, the burden of proof is on Comcast to “explain any reason the commission should not treat Comcast’s VoIP offering as a telecommunications service” subject to the same intercarrier compensation obligations as other facilities-based telecommunications carriers.  The FCC concluded that Comcast’s VoIP service “is not yet complying with such intercarrier compensation obligations”, and requested the company’s response by Jan. 30, 2009.  A call to Comcast went unreturned by press time.

Chris Freind can be reached at cf@thebulletin.us

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January 20, 2009 at 7:28 am Comments (0)