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• Large telecommunications companies, threatened by municipal plans to start their own cable
utilities, have gone to great lengths to demolish local government efforts to provide
inexpensive access to cable and broadband service.
Consider Iowa: In 2005, thirty-one towns and cities were planning on forming municipal
telecommunications facilities. In the case of Waterloo, Iowa, the state’s third–largest city after
Des Moines and Cedar Rapids, telecommunications giant Mediacom went to work convincing
Waterloo residents that municipal cable was bad. Mediacom funded an opposition group called
Project Taxpayer Protection, which raised $941,610 to plaster antimunicipal messages on TV, on
radio, and in newspapers saying that municipal cable would drastically increase residents’ taxes.
Mediacom also contributed an additional $409,000 in in-kind contributions all in the form of
thirty–second television commercials. Qwest Communications also contributed $100,000 to the
statewide effort to ban municipal initiatives. In Waterloo, municipal groups raised $16,429 to
combat this media machine. In the end, however, Waterloo approved its own
telecommunications utility, and the plan passed in seventeen other cities that year.
• Discuss whether and how the Telecommunications Act of 1996 ought to be updated to reflect
conditions in the second decade of the twenty–first century.
VI. The Economics and Ownership of Television and Cable
• Explore the possible consequences of the increasing audience fragmentation and the
proliferation of third and fourth screens on television programming, advertising, and
television as a culture industry.
• When Seinfeld was sold into syndication in 1998 for $1.7 billion, both Jerry Seinfeld and his
collaborator, Larry David, made a fortune: $267 million and $242 million, respectively. They
made so much, in fact, that they vaulted to the top of Forbes magazine’s list of highest–