Originally posted by: charrison
So what law(s) currently provide $20B/year in subsidy to which telecoms for FTTH deployment?
Telco still receive the tax privileges and fees from deregulation that was a result of their promise to provide FTTH . They receive those fees and tax breaks as a direct result of their promises to the taxpayers. If they had not made them to get deregulation they would not be where they are now.
There was no nation wide promise to wire every home with fiber and there is no telco that has 118m homes to serve.
Some quotes that the telco told congress to get deregulation pushed through:
NYNEX, 1993 Annual Report 19
?We're prepared to install between 1.5 and 2
million fiber optic lines through 1996 to begin
building our portion of the Information
Superhighway.?
Bell Atlantic1993 Annual Report
"First, we announced our intention to lead the
country in the deployment of the information
highway.? We will spend $11 billion over the
next five years to rapidly build full-service
networks capable of providing these services
within the Bell Atlantic Region.
"We expect Bell Atlantic's enhanced network
will be ready to serve 8.75 million homes by the
end of the year 2000. By the end of 1998, we
plan to wire the top 20 markets.? These
investments will help establish Bell Atlantic as a
world leader?."
Bell Atlantic Press Release, July 1996.
The company plans to add digital video
broadcast capabilities to this
"fiber-to-the-curb",
switched broadband network by the third quarter
of 1997?Bell Atlantic plans to begin its network
upgrade in Philadelphia and southeastern
Pennsylvania later this year?. Ultimately, Bell
Atlantic expects to serve most of the 12 million
homes and small businesses across the mid-
Atlantic region with switched broadband
networks."
Pacific Bell, 1993
"In November 1993, Pacific Bell announced a
capital investment plan totaling $16 billion over
the next seven years to upgrade core network
infrastructure and to begin building California's
"Communications superhighway". Using a
combination of fiber optics and coaxial cable,
Pacific Bell expects to provide broadband
services to more than 1.5 million homes by the
end of 1996, 5 million homes by the end of the
decade."
SNET 1993 Annual Report
?On January 13, 1994, the Telephone Company
announced its intention to invest $4.5 billion over
the next 15 years to build a statewide information
superhighway ("I-SNET"). I-SNET will be an
interactive multimedia network capable of
delivering voice, video and a full range of
information and interactive services.?
SBC 2004 Annual Report
?Project Lightspeed In June 2004, we announced
key advances in developing a network capable of
delivering a new generation of integrated IP video,
super-high-speed broadband and VoIP services to
our residential and small-business customers,
referred to as Project Lightspeed?
?We anticipate that we will deploy
approximately 38,800 miles of fiber, reaching
approximately
18 million households by year-end
2007, and expect to spend approximately $4
billion over the next three years in deployment
costs and $1 billion in customer-activation capital
expenditures spread over 2006 and 2007.?
SNET 1993 Annual Report83
?On January 13, 1994, the Telephone Company announced its intention to invest
$4.5 billion over the next 15 years to build a statewide information superhighway
("I-SNET"). I-SNET will be an interactive multimedia network capable of
delivering voice, video and a full range of information and interactive services.
The Telephone Company expects I-SNET will reach approximately 500,000
residences and businesses through 1997.?
US West 1993 Annual Report 99
?U.S. West will construct an advanced fiber-to-the-curb/coaxial cable network
capable of providing 77 channels of analog video and between 800 and 1000
channels of digital capacity.?
?The fiber-to-the-curb architecture that Bell Atlantic will build is the next step in
the company's ongoing, aggressive network modernization program?. Bell
Atlantic plans to begin its network upgrade in Philadelphia and southeaster
Pennsylvania later this year. The company plans to expand this Full Service
Network deployment to other key markets over the next three years. Ultimately,
Bell Atlantic expects to serve most of the 12 million homes and small businesses
across the mid-Atlantic region with switched broadband networks." (by 2000)
?Verizon PA has committed to making 20% of its access lines in each of rural,
suburban, and urban rate centers broadband capable within five days from the
customer request date by end of year 1998; 50% by 2004; and 100% by 2015."
In 1992, testimony given by Verizon (then New Jersey Bell), in order to receive financial
incentives to rewire the state, claimed that broadband was 45 Mbps services (or higher) and was
capable of "high definition video" in both directions.
"Broadband Digital Service ? Switching Capabilities matched with transportation
capabilities supporting data rates up to 45,000,000 bits per second (45 Mbps) and
higher, which enables services, for example, that will allow residential and business
customers to receive high definition video and to send and receive interactive (i.e.,
two way) video signals."
Yes verizon is upgrading because they have too and they are doing by areas that are more populated. This should surprise no one.
Of course it shouldn't surprise them. They are only doing what they have always done, profiting at the expense of the consumer. That is why they should not be allowed to own the infrastructure that supports the last mile. Their is no reason for them to own the cable going into someones home. It blocks competition and gives them a monopoly.
Why should verizon support copper after it replaces it? And ATT Does not not have fios, so they have not cut that copper. yet.
That is the point, they don't support it when they replace it with fiber. But they still use it for tax purposes. They show them as possible active subscriber lines that are not subscribed and then write them off as a loss as if they would normally receive revenue from them.
I can say they have for me. I paid about $40 for dailup in 1995. I paid $85 for isdn in 2001 and i now pay $25 for 3meg service. Today I could get 18meg for for less than $85. and these numbers are not even adjusted for inflation.
You pay $85 for 18Mb ? You were supposed to have 45Mb for less than that. So who is being cheated ?
According to the Pennsylvania Public Utility Commission in 2003:
"In view of Bell's commitment to providing 45 Mbps for digital video transmission
both upstream and downstream, we look forward to Bell's providing this two-way
digital video transmission at 45 Mbps."
"On customer request, the electing company shall provide broadband digital service that
is capable of providing transmission speeds of up to 45 megabits per second or better for
customer applications."
Even in one of the industry?s bibles, Newton's Telecom Dictionary, ?Broadband? was defined
as a service with a speed of 45 Mbps as late as 2001.105
?Broadband ? a transmission facility providing bandwidth greater than 45
Mbps (T3). Broadband systems generally are fiber optic in nature.?106
(ED NOTE: This definition in the Newton?s Telecom Dictionary has since changed to fit the new
idea that slower is more politically correct.)
Notice is was changed by the FCC to 200kbps to make the USA not look so bad when asking about broadband number of households.
But the fact remains if you want voice service, you have plenty of options. It is a very competitive market. IF you have also not noticed pots lines are heavily regulated and heavily taxed making them even more uncompetitive with voip.
What options does a homeowner have other than his local carrier for landlines ?
Wireless is competitive ? How many competitors are there really ? Count them and then divide that by who finances the companies and who provides the service through those companies . As for POTS regulation, you mean regulations like these :
The Federal Communications Commission voted 4-0 to reclassify digital subscriber lines as an "information service" that would be far less regulated that traditional phone service.
The change means the government no longer will require phone companies to lease their highspeed lines at regulated rates to competing Internet service providers such as Atlanta-based EarthLink Inc.
BellSouth vice president Herschel Abbott issued a statement saying FCC Chairman Kevin Martin "should be widely applauded for pushing to completion these sweeping changes."
That really helped the consumer.
They promised everything they could to get deregulation. Just give them the money and they promise they would provide competition, help the consumer and fiber for everyone. Then after they got what they wanted.
"Bell Atlantic Delays Home Video Service," the Washington Post, April 26, 1995
"Bell Atlantic Corporation yesterday delayed indefinitely the home video service
it had promised to introduce here and elsewhere in its mid-Atlantic service region
this year."
?Bell Atlantic Halts Plan for Video Services,? The New York Times, April 26, 1995
?Bell Atlantic Corporation called an abrupt halt to its scramble into television
yesterday. Saying it wanted to rethink its strategy for upgrading its telephone
network, the company asked the Federal Communications Commission to
suspend its application to offer video services to as many as three million
telephone customers??
"Pac Tel Cuts $1 Billion Interactive Plan", New York Post, September 28, 1995
"Pacific Telesis Group said it will cut $1 billion over 5 years from proposed
spending on its Information Superhighway amid concerns about costs, competition
and regulations.... The company's revamped strategy calls for it to substitute old
fashion roof top antennae for cable in some areas."
What the telco told the stockholders, they were overjoyed:
?In 1994, Ameritech proactively changed the way in which we are regulated. We
have replaced rate of return regulation with price-cap plans without earnings
sharing in all five states in which we are franchised as a communications carrier.
As a result 100% of Ameritech?s $8 billion of intrastate revenues are now
regulated by prices , not earnings. The plans foster market based pricing and give
Ameritech greater incentive to earn more by allowing us to keep all that we earn."
And why wouldn't the stockholders be happy. Look at the income before regulation was removed and after:
From 1988 through 1992, Ameritech?s average was
15.6% ?return on equity?, the standard measurement of business returns, the ?dividend? paid to
its shareholders was $1.16, and the ?net income? was about $2.2 billion. By 1993, the numbers
start climbing and by 1998 the dividend increased 187% to $3.27, the return on equity was now
36.2%, an increase of 129%, and the net income was $4.2 billion, an increase of 97%
Every time anyone questions the motives of the telco they come out with press releases, they seem to be good at that. What I can't understand is why people continue to believe them.
?In a conference call today, the company will say network lab and field trials are
under way, network construction is scheduled to begin in the first quarter of 2005
and SBC's new IP-based network is expected to be available to 18 million
households by the end of 2007. The launch of IP-based TV services over the new
network is planned for the fourth quarter of 2005.?
Other tricks they do to get by things like taxes:
In 1999 the FCC released a series of audits of the Bell
companies? Continuing Property Records. It found $18.6 billion in missing or unverifiable
equipment, about 22% of the equipment on the books. For example, the FCC wrote that 24%
of Bell Atlantic's equipment either couldn't be matched with the FCC records, or the
equipment simply wasn't there. And the records themselves had massive amounts of
nonsense entries .
Political pressures made the FCC drop the audits and turned them over to the state commissions.
In the last three years, the phone companies have written off $17 billion more than they put into new construction.
New Jersey Ratepayer Advocate, April 1997
"low income and residential customers have paid for the fiber optic lines every
month but have not yet benefited.
It is really sad how much they have gotten away with and nobody has called them on it except one state New Jersey. There verizon has been sued by the state. I guess people don't understand how the whole system works. All they know is they want broadband cheap and when they complain the telco put out another press release promising some new wonder service at cheap prices while laughing all the way to the bank.
If you want to see the whole things , facts figures, including references to back up everything , download the pdf below:
http://www.teletruth.org/docs/broadbandscandalfree.pdf
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