A  recent book by David Cay Johnston, The Fine Print, examines specifically how big companies have found ways to take advantage of the tax and regulatory systems to their benefit and to the detriment of consumers. The sad part - we don't even realize it.

Johnston discusses how big companies and their leaders exploit tax rules to re-distribute wealth upwards. Johnston also examines how this exploitation is almost never covered in the media, encouraging big companies to stoop to new lows in ripping off consumers. Telecommunications is one of the industries he covers in the new book.

In the first chapter (read the first chapter via Democracy Now!), Johnston describes how friend and journalist, Bruce Kushnick, came across twenty years' worth of telephone bills in his elderly aunt's possessions. Kushnick tracked the changes in her bills, systematically reviewing and comparing every charge. Kushnick found an array of confusing and cryptic "fees," "charges," and "taxes." The end result:

When he cross-checked his aunt’s telephone bills over the years, he could hardly believe the numbers. His aunt paid $9.51 for her local phone service in 1984. By 2003 her bill had swollen fourfold to $38.90. In the two decades since the breakup of the AT&T monopoly, even after adjusting for inflation, his aunt’s telephone cost $2.30 for each dollar paid in 1984. And that was without any charges for long-distance calls.

Johnston notes the method used by telecoms to increase prices over time:

The California Legislature recently passed SB 1161 (dubbed "California's Worst Telecom Bill Ever") and the bill is on the Governor's desk. Utility reform group, TURN, and the New America Foundation are two groups that have opposed this ALEC supported bill from the start. We reported on it in June and shared with you how it will negatively impact the ability for local communities to invest in broadband.

The Humboldt County Board of Supervisors sent a letter to Governor Brown formally opposing the legislation and asking for a veto. According to the an Access Humboldt press release:

In a letter yesterday (August 28, 2012), the Humboldt County Board of Supervisors requested Governor Brown to veto SB 1161, noting: "SB 1161 weakens open Internet protections and subverts long held State policy 'To continue our universal service commitment...' Why abandon our commitment to least served people and places?"

The Board officially expressed their opposition to the bill in May, noting that holes in the legislation ignored public safety, privacy, and consumer protection issues. No amendments were adopted to address those concerns.

You can view a PDF of the veto request here. We encourage you to take an active part in helping stop this legislation by contacting Governor Jerry Brown directly.

You can also read Susan Crawford's take on it and similar efforts in other states.

Northern District Mississippi Public Service Commissioner Brandon Presley is unhappy with a new state law that will strip oversight over AT&T. Presley plans to personally file suit in Hinds County Circuit Court against the law, calling it unconstitutional. “It violates the state constitution,” Presley said of the bill during an interview with the Daily Journal. “There’s no doubt AT&T is the biggest in the state, and this bill will allow them to raise rates without any oversight at all.” House Bill 825 strips away rate regulation of Mississippi landline service and removes the oversight powers the PSC formerly had to request financial data and statistics dealing with service outages and consumer complaints. The law also permits AT&T to abandon rural Mississippi landline customers at will.

Orangeburg County, South Carolina, received $18.65 million in broadband stimulus funds for high-speed broadband (which we previously noted). Unfortunately, AT&T and its friends at ALEC have since pushed through a state law to limit local authority in building networks.

According to the Broadband Adoption Map from the Investigative Reporting Workshop of the American University School of Communication, Orangeburg County has a broadband adoption rate of 20-40% as compared to the national rate of 60%.

Not only has AT&T refused to invest in modern networks in much of South Carolina, it is not even bothering to accept a federal subsidy that would underwrite some of that cost. Which is actually good for the rest of us, because subsidizing any AT&T activities is a very poor use of taxpayer dollars.

But Orangeburg is moving forward on its own. The Orangeburg County Council approved a $2.4 million contract with Edwards Telecommunications to complete the third phase of their project. This phase alone will use 171 miles of fiber and add 902 households to the network. Two more phases are scheduled before the entire project is complete.

According to a Gene Zaleski Times and Democrat article:

Seventy-five percent of the project will be paid for with a U.S. Department of Agriculture Rural Utilities Service grant and the remaining 25 percent will be paid for with proceeds from the Orangeburg County capital project sales tax.

In 2010, after receiving the award, the County expressed their optimism in a Phil Sarta article in the Times Democrat:

South Carolina's H3508 has passed the legislature, been signed by Governor Nikki R. Haley, and has revoked local authority to build the broadband networks they need to create new jobs. Last week, we noted some of the coverage about the bill. After reviewing the language of the bill, we are astonished at how far the Governor and the South Carolina Legislature have gone to protect AT&T's monopoly, to the detriment of the many businesses and citizens who desperately need better access to the Internet -- whether to be more productive, competitive, or just take advantage of educational opportunities.

South Carolina is near the bottom of adoption rate in the U.S. and has a higher than average number of residents living below the poverty line. Communities with fast, affordable, and reliable access to the Internet are seeing new jobs. Those stuck on slow DSL are watching jobs wither away.

We continue to be amazed at state legislatures that are prioritizing laws to make it harder to expand broadband rather than easier. The only explanation is the vast amounts of money big companies like AT&T and Time Warner Cable spend in campaign contributions.

This bill is designed to prevent local governments from building next-generation networks, even when the private sector has refused to invest. It may also put an end to projects already in the works (even those that have received BTOP or BIP funding).

Last week, South Carolina's General Assembly passed H3508, the ALEC and AT&T bill we previously warned you about. AT&T, ALEC, and cable companies pushed this bill to limit broadband competition and revoke local authority to decide if public investments in broadband infrastructure are wise.

H3508 is one of the worst pieces of legislation we have seen. States usually incorporate language that "grandfathers in" existing projects as a way to avoid legal challenge and federal scrutiny of their anti-competition legislation. In South Carolina, however, crafty drafting puts one county BTOP project in the cross hairs while permitting two other projects to continue.

Below is a roundup of media coverage of the bill. We will soon release our analysis of the supposed "exemptions" to this bill but in the meantime, this coverage explains several of the problems with South Carolina's latest Monopoly Protection Act.

Ars Technica's Cyrus Farivar contacted Jim Baller, a preeminent telecom attorney and expert in broadband issues:

"States have different ways to achieve the same end—discourage, delay, or derail public broadband initiatives," wrote Jim Baller, a telecom lawyer based in Washington, DC, in an e-mail to Ars on Thursday. He noted that similar bills were introduced in Minnesota and Georgia this year, the former of which has led to a "study bill," while the latter did not make it out of committee.

"In some ways, the South Carolina bill is worst of all because it does not grandfather existing projects and would retroactively undermine federal stimulus grants that Orangeburg and Oconee Counties have received,"  he added.

Farivar also looked into the chief author and found: