Welcome Guest [Log In] [Register]
Welcome to Livonianeighbors.com. We hope you enjoy your visit.


You're currently viewing our forum as a guest. This means you are limited to certain areas of the board and there are some features you can't use. If you join our community, you'll be able to access member-only sections, and use many member-only features such as customizing your profile, sending personal messages, and voting in polls. Registration is simple, fast, and completely free. To ensure your privacy, never use personal information in your screen name or email address ("janedoe@hotmail.com" or "Billysmom" for example).

Join our community!


If you're already a member please log in to your account to access all of our features:

Username:   Password:
Add Reply
The Great Cable Rumor; What Really Happened
Topic Started: Aug 4 2009, 03:29 PM (386 Views)
Ms. AK
Veteran
iknowbetter:
Aug 3 2009, 02:14 PM
Please ask Mr. Laura why he put up roadblocks to other cable companies setting up in Livonia. I understand that when Comcast wanted to set up in Livonia, it was Laura who in a roundabout way put up obstacles until they got disgusted with the process and moved on to other communities.


Thanks for your question. The cable company involved is the former Ameritech New Media now AT&T--which is currently Livonia's 2nd cable company.

I interviewed Mr. Laura last Friday and I asked him about the cable competition rumors. This is what I came away with:

1. The December 1999 meeting (not a public CC meeting) in question was neither taped nor minutes taken.

When the rumor about Laura and cable competition comes up, ask who was actually there, what their political or financial gain is--and the actual voting record on the topic (see below for who voted for what).

2. Mr. Kirksey perpetuated this rumor in a negative smear campaign, bumping Laura out of the 2007 mayoral competition. On Kirksey's website (http://www.jackkirksey.com/compare.html), it still states that Laura "killed" cable competition. However, there is no proof provided. No link to anything impartial. No nothing.

3. There IS cable competition in Livonia. It's AT&T (formerly Ameritech).

DISCLOSURE: I edited the following for clarity (thanks, Vanna, for the input).

AT&T opted out of widespread cable offering for some years (I believe AT&T U-verse was brought out in 2007?).

4. Ameritech's decision to not set up in 1999 in Livonia had to do with their own business decisions, company reorganization and employee issues. Ameritech decided that setting up shop here was cost prohibitive.

Shortly after the 1999 cable meeting, Ameritech reorganized into what is the current AT&T. Also, their spokesperson for that meeting was fired that December shortly after the meeting.

Reportedly, the spokesperson was very abusive, telling members in the audience to "shut up" many times during the 1999 meeting.

5. CC who voted AGAINST AT&T coming to Livonia:

McCann, Taylor & Knapp

Voting FOR AT&T being our second cable company:

Laura, Meakin, Marecki, Robinson.


FYI: McCann’s cousin runs Bright House and his wife is in charge of the city’s cable operation.

Take it as you will, but these are the facts according to my research.

Look at the voting record--it speaks for itself. Look at who politically benefits from perpetuating the rumor about Laura. Look at who's related to whom. Look at who wants to be Mr. Kirksey's successor--McCann. Look who is very close to Mr. Kirksey--McCann.

If you are a voter and cable competition is important, then don't vote for McCann. He's the one who actually voted against cable competition.

I edited this post to reflect more cable business information.
Edited by Ms. AK, Aug 4 2009, 08:31 PM.
Krome on Cars

Offline Profile Quote Post Goto Top
 
Monkfish
Advanced Member
[ *  *  * ]
Anna Krome
Aug 4 2009, 03:29 PM
iknowbetter:
Aug 3 2009, 02:14 PM
Please ask Mr. Laura why he put up roadblocks to other cable companies setting up in Livonia. I understand that when Comcast wanted to set up in Livonia, it was Laura who in a roundabout way put up obstacles until they got disgusted with the process and moved on to other communities.


Thanks for your question. The cable company involved is the former Ameritech New Media now AT&T--which is currently Livonia's 2nd cable company.

I interviewed Mr. Laura last Friday and I asked him about the cable competition rumors. This is what I came away with:

1. The December 1999 meeting (not a public CC meeting) in question was neither taped nor minutes taken.

When the rumor about Laura and cable competition comes up, ask who was actually there, what their political or financial gain is--and the actual voting record on the topic (see below for who voted for what).

2. Mr. Kirksey perpetuated this rumor in a negative smear campaign, bumping Laura out of the 2007 mayoral competition. On Kirksey's website (http://www.jackkirksey.com/compare.html), it still states that Laura "killed" cable competition. However, there is no proof provided. No link to anything impartial. No nothing.

3. There IS cable competition in Livonia. It's AT&T (formerly Ameritech New Media).


4. The decision for Ameritech to not set up here in 1999 has to do with their own business decisions, company reorganization and employee problems. Ameritech decided that setting up shop here was cost prohibitive. They did not move to another community. They did not set up anywhere else back then. They opted out of cable for some years.

According to Laura, shortly after the 1999 cable meeting, Ameritech ceased to be a company in January 2000 reorganizing as the current AT&T. Also, their spokesperson for that meeting was Donna Garafano, who was fired that December shortly after the meeting.

Ms. Garafano was reportedly very abusive, telling members in the audience to "shut up" many times.

5. Look at who voted AGAINST AT&T coming to Livonia:

McCann, Taylor & Knapp

Voting FOR AT&T being our second cable company:

Laura, Meakin, Marecki, Robinson.


FYI: McCann’s cousin runs Bright House and his wife is in charge of the city’s cable operation.

Take it as you will, but these are the facts according to my research.

Look at the voting record--it speaks for itself. Look at who politically benefits from perpetuating the rumor about Laura. Look at who's related to whom. Look at who wants to be Mr. Kirksey's successor--McCann. Look who is very close to Mr. Kirksey--McCann.

If you are a voter and cable competition is important, then don't vote for McCann. He's the one who actually voted against cable competition.
Great research...very informative...thank you. Laura's been looking better and better to me as of late...if only he had NOT endorsed the annexation.
Offline Profile Quote Post Goto Top
 
Ms. AK
Veteran
Yeah, I know. That'll be covered in my article.

But he was the only vote against Walmart #2.

I found him a very honorable man, and it was obvious by our discussion that he's not beholden to the mayor.

I like an independent voice.
Krome on Cars

Offline Profile Quote Post Goto Top
 
Vanna White
Member Avatar
Veteran
Just a couple of things I know about because my husband has worked his entire life for the local phone company (Michigan Bell, Ameritech, SBC, AT&T):

Ameritech merged with SBC and operated in Michigan and other states under that name for a few years before merging with AT& T, which had operated in other states and nationally with cell phone services.

Ameritech DID operate a cable company for a while in addition to their wired phone and internet services and Cingular wireless. It was offered in some cities in Metro Detroit area, including Plymouth. I watched Ameritech cable frequently at a friend's home in Plymouth several years ago, although I couldn't tell you the specific years it existed.



Offline Profile Quote Post Goto Top
 
Ms. AK
Veteran
Thanks, Vanna, for the details regarding Ameritech becoming SBC before becoming AT&T.

Yes, you are correct, according to the next post Ameritech began cable in the late '90s (1997?), but that it was a failed strategy--which might help explain their decision to not set up shop here in 1999.

According to my source, Ameritech ultimately was not interested in getting into the cable business in Livonia.

I believe the situation in Livonia was not profitable for Ameritech--something to do with infrastructure(?).

Maybe your husband can offer some insight into the upstart capital/infrastructure necessary to get started in Livonia 10 years ago. Fiber optics maybe? I'm just guessing on this aspect.
Edited by Ms. AK, Aug 4 2009, 07:56 PM.
Krome on Cars

Offline Profile Quote Post Goto Top
 
Ms. AK
Veteran
Here's an industry article from 2001--it mentions AT&T's failed cable strategy.

http://findarticles.com/p/articles/mi_m0HWW/is_28_4/ai_77033811/

Broadband Is Cheap - Comcast wants AT and T Cable
Industry Standard, The, July 23, 2001 by Jason Krause

When AT&T said last October it was splitting into four units, a lot of people in the cable industry started salivating: The nation's biggest operator, AT&T Broadband, was going to be spun off. Thanks to Ma Bell's bungling, it might go for a song.

Brian Roberts, president of No. 3 cable company Comcast, was the first to bid. "AT&T said it was going to split into four parts. To me, that meant that cable is no longer strategic to AT&T," says Roberts, who then approached AT&T with "a better way." But once AT&T'S board cut off negotiations, he went public with his case.

Cable Firms Form Home Security Unit. (broadband home security)

While Comcast and other operators have seen their stock rise and margins improve, AT&T has been in a slump -- due in part to the failure of its cable strategy. That's why Comcast can offer more than $40 billion, and assume $13.5 billion in debt, for assets AT&T bought for $100 billion.

How did AT&T ruin its cable business? In 1997, executives figured getting into cable would let AT&T offer phone service, digital TV and Internet access. It was all about convergence. Since AT&T acquired cable companies TCI and Media-One, though, cash flow margins have fallen to the lowest in the industry. "AT&T destroyed value in its cable business by associating a strong cable business with a toxic phone business," says Scott Cleland, principal analyst for the Precursor Group.

Comcast has been inundating analysts and media outlets with PowerPoint slides to prove it can solve AT&T'S problems. "There's an obvious $500 million a year they lose being in local phone business that we would cut," notes Roberts.

Still, it's not clear whether Comcast can squeeze much more out of AT&T cable. "Very few of [Comcast's cities] are tough, top-tier markets," says Ford Cavallari, an analyst with telecom consultancy Adventis. "It does not necessarily follow that because Comcast has good margins in its cities that it can get the same margins in AT&T's cities."

AT&T Broadband has some significant challenges. The question is whether AT&T will take them on or Comcast will be the one to do it.
Krome on Cars

Offline Profile Quote Post Goto Top
 
Ms. AK
Veteran
I'm going "dark" on this part of the discussion. I'm certainly not an expert on cable.

My point remains, based on my source, that Joe Laura did not single-handedly run cable competition out of Livonia--as was the rumor perpetuated by Mayor Kirksey in his 2007 mayoral run.

Krome on Cars

Offline Profile Quote Post Goto Top
 
Momof4
Member Avatar
Veteran
IMO, it's another black eye for Kirksey. What a scum bag politician move.
Offline Profile Quote Post Goto Top
 
Vanna White
Member Avatar
Veteran
Anna Krome
Aug 4 2009, 07:28 PM
Here's an industry article from 2001--it mentions AT&T's failed cable strategy.

http://findarticles.com/p/articles/mi_m0HWW/is_28_4/ai_77033811/

Broadband Is Cheap - Comcast wants AT and T Cable
Industry Standard, The, July 23, 2001 by Jason Krause

When AT&T said last October it was splitting into four units, a lot of people in the cable industry started salivating: The nation's biggest operator, AT&T Broadband, was going to be spun off. Thanks to Ma Bell's bungling, it might go for a song.

Brian Roberts, president of No. 3 cable company Comcast, was the first to bid. "AT&T said it was going to split into four parts. To me, that meant that cable is no longer strategic to AT&T," says Roberts, who then approached AT&T with "a better way." But once AT&T'S board cut off negotiations, he went public with his case.

Cable Firms Form Home Security Unit. (broadband home security)

While Comcast and other operators have seen their stock rise and margins improve, AT&T has been in a slump -- due in part to the failure of its cable strategy. That's why Comcast can offer more than $40 billion, and assume $13.5 billion in debt, for assets AT&T bought for $100 billion.

How did AT&T ruin its cable business? In 1997, executives figured getting into cable would let AT&T offer phone service, digital TV and Internet access. It was all about convergence. Since AT&T acquired cable companies TCI and Media-One, though, cash flow margins have fallen to the lowest in the industry. "AT&T destroyed value in its cable business by associating a strong cable business with a toxic phone business," says Scott Cleland, principal analyst for the Precursor Group.

Comcast has been inundating analysts and media outlets with PowerPoint slides to prove it can solve AT&T'S problems. "There's an obvious $500 million a year they lose being in local phone business that we would cut," notes Roberts.

Still, it's not clear whether Comcast can squeeze much more out of AT&T cable. "Very few of [Comcast's cities] are tough, top-tier markets," says Ford Cavallari, an analyst with telecom consultancy Adventis. "It does not necessarily follow that because Comcast has good margins in its cities that it can get the same margins in AT&T's cities."

AT&T Broadband has some significant challenges. The question is whether AT&T will take them on or Comcast will be the one to do it.
Actually I am pretty sure that the issues referred to in this article are completely different than what happened under Ameritech, which was a seperate company from AT&T at the time and had it's own cable arm for while.
Offline Profile Quote Post Goto Top
 
Xena
Advanced Member
[ *  *  * ]
Thank you Anna for stating the facts. Every time this comes up it reminds me how good the Kirksey machine is. Joe Laura will never get away from this. No matter how many times he responds, with facts backing him up. There will always be those who l believe he killed cable competition.
Just like those who will always believe the LI saved our disstrict money.
Edited by Xena, Aug 5 2009, 09:03 AM.
Offline Profile Quote Post Goto Top
 
Ms. AK
Veteran
Yes, there will always be the "true believers" of this rumor. When I first heard the rumor, I said, "Huh?" How can someone single-handedly "kill" cable competition in the city? Was there a vote to prove this? No, there was never a vote on this.

The voting record speaks for itself.

Mr. Laura voted yes to cable competition when AT&T was ready to come in; whereas, Mr. McCann, who has familial connections to Bright House, did not.

We do have cable competition in Livonia, and Mr. Laura is partly responsible for it.

If you care about cable competition and you are a one-issue voter, why vote for Mr. McCann?



Krome on Cars

Offline Profile Quote Post Goto Top
 
« Previous Topic · Livonia Neighbors Forum · Next Topic »
Add Reply