IPTV Saga: Verizon Sticks With Good Ol' Lobbying, Adds Cash Incentive

from the money-talks dept

SBC may have stopped negotiating with lawmakers on IPTV requirements, but Verizon is still working the legislative angle. The issue surrounds current (and probably outdated) laws that would force the telcos to obtain franchisee licenses with every municipality it wants to offer video services. The telcos have been trying hard to change those laws, without much luck. So last week, SBC gave up on negotiating and brashly said it was going to offer IPTV anyway. Their attitude: if someone wants to sue us, go ahead. Meanwhile, Verizon has come up with a new plan for gaining statewide (rather than local level) approval for their video service. Om Malik notes a WSJ story that says Verizon is offering New Jersey a deal in which it will kick back to the state 3% of TV revenues, up from 2%. Verizon and SBC have tried the statewide approach already in Texas, where the telcos’ proposal went down in flames. But this time around with NJ, it appears that Verizon is sweetening the pot a bit. Hmm. Give us approval and we’ll pay you more? That certainly sounds like a bribe. Or maybe it’s just business as usual.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “IPTV Saga: Verizon Sticks With Good Ol' Lobbying, Adds Cash Incentive”

Subscribe: RSS Leave a comment
Aaron de Oliveira (profile) says:


It?s not a bribe in this case. The state is entering into a financial arrangement with a company just like any other entity. The amount of return you get from that arrangement can effect how quickly you accept things.
States are sometimes commercial entities just like companies. They sell products like lower taxes, subsidies, etc. States market directly to companies to enter into financial arrangements of this sort with them. Look at Deleware and Nevada. Two states that set themselves apart as business friendly states.

Bob says:

Re: bribes

I disagree. It is a bribe flat out. Perhaps it can be considered extortion. While the corporations make huge profits bringing their product to market and the politicians make an easy buck in “kick backs” it will be the consumer who looses.

Verizon will not sacrifice 2 or 3 per cent of their profit margin to political big wigs, rather they will increase the cost of their product by 2 or 3 per cent because economics 101 teaches us that the cost falls on those least able to escape it. That would be the consumer.

Political kick backs are bad business, bad government and bad for consumers.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...