- Comment 1: is a short overview as well as a bibliography of our research, which is directly tied to this proceeding It also gives a brief discussion of issues that have been overlooked or are missing and need to be part of the next steps the State should be implementing.
- Comment 2: is a more detailed view of the current proceeding and Verizon settlement, as published in tbe Huffington Post: Verizon NY in Multi-Billion Dollar Settlement Tangle, Underway in NY State.
- Comment 3: : is a full analysis of the Verizon NY’s 2016 Annual Report Verizon NY 2016 Annual Report: Follow the Money: Financial Analysis and Implications
On May 24th, 2017, the IRREGULATORS filed comments with the FCC and the Federal State Joint Board on Jurisdictional Separations.
We recognize that the Commission has chosen to deregulate the so-called Price Cap Carriers such that to the limited extent that they are subject to rate regulation, it is via a price cap mechanism, not the traditional Uniform System of Accounts. Hence only the Rate of Return Carriers are directly subject to the separations mechanism for the computation of their interstate rates. However, even in the case of the Price Cap Carriers, Separations is a joint federal-state matter, and the freeze imposed by the Commission directly impacted state rates and, even more importantly, policies. Fictitious accounting leads to bad decision-making. Hence the costs of more accurate separations are not an undue burden. Rate of Return Carriers already are required to provide detailed regulatory accounting in order to determine their appropriate rate and subsidization levels. Price Cap Carriers, especially the Bells (including their successors-in-interest) are large companies with ample accounting resources. Thus, the issues we raise are not moot, even when dealing with the largest carriers.
The Federal State Joint Board has asked:
- Re: Federal State Joint Board on Jurisdictional Separations Seeks to Refresh Record on Issues Related to Jurisdictional Separations, FCC 17J-1
- Re: Federal State Joint Board on Separations Seeks Comment on Referral for Recommendations of Rule Changes to Part 36 as a Result of Commission Revisions to Part 32 Accounting Rules, FCC 17J-2
The Book of Broken Promises
“A regulated company will always renege on promises to provide public benefits tomorrow in exchange for regulatory and financial benefits today.”
America’s households and businesses have been overcharged at least nine times for broadband/fiber optic services, including the wiring of schools, libraries, and hospitals— about $4000-$7000 per household, and the total is way over ½ trillion dollars by 2016. You can thank just a few companies: AT&T, Verizon and Centurylink, who control the state-based utilities, along with the cable companies, Comcast and now-Spectrum et al. And this is the low number.
The 3rd book in a trilogy that started in 1998, “The Book of Broken Promises” by Bruce Kushnick, proves that few have a clue about the factual history of broadband, much less fiber optic deployments in America that customers paid for, especially the FCC.
April 2017 was Infrastructure Month at the FCC; shame you weren’t told the truth. FCC Chairman Ajit Pai, a former Verizon attorney, has been making sure you hear the fake history of broadband and the Internet, which is being used to create exceedingly harmful public policies, and this needs to be stopped, now.
And regardless of what you heard, Verizon, AT&T and CenturyLink control the state telecommunications utilities, such as Verizon NY or AT&T-California, a fact that has been erased. And the copper wires, as well as most of the fiber optic wires are part of these state utilities, including those used for FiOS or the wires to the cell sites, or all of the other ‘business data services’ (BDS). And they have been funded mainly by local phone customers—and are classified as something called “Title II”.
(Yes, AT&T and Verizon are also wireless companies, and ISPs, and cable companies, and broadband companies, and more recently ad-tech and entertainment companies. However, almost all of it uses the state utility wires, especially in their own territories.)
Here’s What Actually Happened (For details, download the book.)
Since the beginning of 2017, the FCC has been a path of destruction with the overarching theme to erase all laws, regulations and consumer protections and to let a few very large monopolies/duopolies (or oligopoly)—Verizon, AT&T, Centurylink, and the cable companies—do what they want at your expense.
And this FCC can follow this path because there are only three current commissioners (out of a full complement of five), where the FCC Chairman, Ajit Pai, a former Verizon attorney, controls the agenda with the second Republican Commissioner, Michael O’Rielly. This means that the only Democrat, Mignon Clyburn, (who has always taken a pro-consumer position), will lose every vote, but rather it means that the American Public loses as well.
Much of the FCC’s destructive path is well known to most:
- Block Privacy Rules: The FCC (with Congress) has blocked the implementation of the previous FCC administration’s new privacy rules from going forward. Blocking this new rule allows the phone and cable companies to sell the customer’s information to advertisers and give their own affiliate companies the ability to spy and track customers’ purchases, friends, contacts, etc., on multiple devices.
- Erasing the Net Neutrality rules is next and there will be a flurry of activities to stop the new FCC’s plans to neuter customer protections.
But there are other areas that have gotten little or no attention and they are at the core of your communications.
- Erase Basic Accounting Rules: The very first official FCC meeting was used to erase some of the basic accounting rules,
The Verge, April 11th, 2017
“After Congress repealed the FCC’s broadband privacy rules two weeks ago, new FCC chairman Ajit Pai promised the American people that he would ensure that the personal information they give to their ISPs would continue to be protected. Pai said that he planned to work with the Federal Trade Commission to “restore the FTC’s authority to police internet service providers’ privacy practices.”
“But this plan will not only fail to provide effective broadband privacy protections, it will come at the cost of eliminating the FCC’s net neutrality rules that prohibit ISPs like Comcast and AT&T from picking winners and losers on the internet. And there’s a real chance the FTC actually won’t be able to regulate ISPs at all.”
- Consumers’ data protection and content choice under attack
The Seattle Times, April 11th, 2017
- “Unenforceable”: How voluntary net neutrality lets ISPs call the shots
Ars Technica, April 11th, 2017
Nearly 1 million New York households do not have access to Verizon’s fiber-based FiOS service. Verizon says it has brought its network to 2.2 million NYC residences, while the city has an estimated 3.1 million households.
The city government’s complaint in the New York State Supreme Court seeks a declaration that Verizon is in breach of its obligations and an order to complete the project. The 2008 agreement, which gave Verizon a citywide cable television franchise, said Verizon must “pass all households” with its fiber-to-the-premises network by June 30, 2014. The agreement covered only cable television, but the fiber build-out also provided faster Internet speeds because the same fiber is used to deliver both services.
Click to Read the Complaint:
A.G. Schneiderman Announces Lawsuit Against Spectrum-Time Warner Cable And Charter Communications For Allegedly Defrauding New Yorkers Over Internet Speeds And Performance, February 1st, 2017
Complaint Alleges Nation’s Second-Largest Internet Service Provider Systematically And Knowingly Failed To Deliver The Reliable And Fast Internet Access It Promised To Subscribers Across The State
Suit Seeks To Compensate Spectrum-Time Warner Cable Subscribers For Five Years Of Broken Promises And Damages And Restitution That Could Be Worth Upwards Of Hundreds Of Millions Of Dollars