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Tired of Time Warner Cable service, make your own city wide company (while it's still legal)
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The city of Wilson, North Carolina apparently got so tired of dealing with high prices and poor service of Time Warner Cable, that they made their own company Greenlight for Cable, Internet, and Phones.
It's an all fiber optic network that has 81 basic cable channels, 10 Mbps (download and upload), and a digital phone plan with unlimited long distance to the U.S. and Canada, all for $99.95, says Daily Tech. A comparable TWC package would cost $137.95, for an introductory rate.
So what does Time Warner do about this? Another company is daring to eat into their profits.
Why they try to make it illegal of course. They are trying to legislation passed that would make it illegal to have community owned ISP services, arguing they can't compete with those prices, since Greenlight is essentially selling the services at cost. -
Cheers for Wilson! I'm paying close to $100 for just digital phone and internet (no cable) through TWC and getting nowhere near those speeds.
Unfortunately, Time Warner's action has some legal precedent on its side. North Carolina passed the Umstead Act in 1929, stating:(a) Except as may be provided in this section, it shall be unlawful for any unit, department or agency of the State government, or any division or subdivision of any such unit, department or agency or any individual employee or employees of any such unit, department or agency in his, or her, or their capacity as employee or employees thereof, to engage directly or indirectly in the sale of goods, wares or merchandise in competition with citizens of the State, or to engage in the operation of restaurants, cafeterias or other eating places in any building owned by or leased in the name of the State or to maintain service establishments for the rendering of services to the public ordinarily and customarily tendered by private enterprises, or to contract with any person, firm or corporation for the operation or rendering of any such business or services on behalf of any such unit, department or agency or to purchase or sell to any person, firm or corporation any article of merchandise in competition with private enterprise. The leasing or subleasing of space in any building owned, leased or operated by any unit, department or agency or division or subdivision thereof of the State for the purpose of operating or rendering of any of the businesses or services herein referred to is hereby prohibited.
This is essentially a "non-compete" clause for government services. Practically speaking, it makes my life that much more annoying because UNC is not allowed to sell books, food or other services at competitive prices. This means it generally costs more to buy things through the university, which flies in the face of reason. So be it.
The good news is that counties and municipalities are specifically exempt from the Umstead Act. This means that Greenlight is starting from a good initial position. To win their case, the City of Wilson will likely need to argue that internet service is an essential utility for their constituents. I imagine that might be a bit of a hurdle (and will inevitably draw the attention of state regulators), but a successful defense would be a significant legal milestone. I'm keeping my fingers crossed.
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- Mike Brady April 2009