New corporate welfare state? Fiber optics & the Digital Divide

New corporate welfare state? Time to Investigate the billions charged to local customers for fiber optics they never received, and the creation of the Digital Divide.–

Below I quote a NY Times article interviewing the NJ Consumer advocate in 1997, who filed a complaint about the failure of Bell Atlantic (Verizon) New Jersey to bring fiber optic services to low income areas, starting in 1993- and the redlining. Yes, 3 decades ago.

“In the five years since Bell Atlantic promised to wire every home and business in New Jersey with fiber optic cable, the company has hooked up suburban business parks and large corporations and set a schedule for suburban neighborhoods, but has not yet made specific plans for the thousands of poor people who live in the state’s largest cities… Those people have paid for the fiber optic lines through their monthly bills, she said, but they have not yet benefited.”
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It is time to correct the record and point out the factual flaws that are now creating a new corporate welfare state for AT&T, Comcast, etc. –which includes the low income ACP and BEAD monies. – but are not helping the public in the end.

The reports coming out, like the “Lewis Latimer Plan for Digital Equity and Inclusion”, are either clueless or worse they reflect the report’s funders, which include AT&T, Charter Communications, Comcast, Crown Castle, T-Mobile, and Verizon. Moreover, it is filled with a cast of other writers, almost all are or have been funded by the companies.

The report’s position (paraphrased)– give the companies more government subsidies on multiple levels. It does not hold those accountable, but wants to reward them.

Truth is: Almost every state telecom utility in America had a fiber optic plan, replacing the copper, starting in 1992; — but never delivered. Then, Verizon et al. pulled another shell game and promised fiber optics in 2004 (FiOS and AT&T, U-verse). And again stopped and instead, around 2011 the construction budgets of the utilities appear to have been diverted to wireless in a bait and switch, but still charged to customers — Virtually no state ever went back and lowered rates, or refunds.

The Latimer plan and all those plans that start at the pandemic, or worse, and they start at the failed National Broadband Plan of 2010–(which never mentioned the state plans) never even mentions now AT&T, Verizon, Centurylink (Lumen) by name and fails to identify that they created the Digital Divide. They got paid, and are still being paid, but never did the upgrades to all customers.

And this is not history — overcharging and wireless-cross-subsidies are still in play in 2023. We don’t need Corporate Welfare. Time to halt the subsidies and overcharging and use these funds in 2023 to pay for fiber upgrades, but also lower rates. (may require registration)

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Bell Atlantic Plan Neglects Poor, Advocate Says

archive.nytimes.com • 5 min read

Verizon NY FiOS– 500,000 Lines added by July 16, 2023?

Verizon New York has a deadline to provide 1/2 million fiber optic lines as part of the FiOS cable TV franchise. — July 16, 2023. We have a long history about this deployment to have 100% of residential locations covered by 2014 (the deal left out the business locations, however.) We worked with the de Blasio as advocate — requesting the city do a full survey to see what had not been done — which was based on interviews and discussions with the installers, not to mention the problems with other cities and state’s fiber deployments.

We also suggested that the City take Verizon to court and apply the penalties, as well as join in the investigation of the manipulated accounting on the state level— which was part of an effort by ConnectNY coalition– resulting in 30000+ fiber lines being put in unserved areas…but the state dropped anything dealing with the cross-subsidies of wireless— vs the wireline utility construction budgets used for fiber to the home.

Moreover, unless I missed it — The NY state reports and info never mentions this commitment and the FCC filings by the Latimer plan (which I referenced, by Urban League at the FCC) claimed that there was no mention of unserved areas– or redlining, in NYC, even though the state comptroller report, which Mayor de Blasio quoted. was all about the holes in deployment being related to the failure to upgrade lower income areas of the City. –
-This extended agreement was supposed to close gaps in deployment. But, his was supposed to be tracked — I can’t find the public docs. There is no mention in virtually any city or state discussion of ‘broadband’ funded via local rates, put in as Title II and the state telecommunications public utility — or anyone asking fundamental questions —- So. Verizon put the networks in and no one can afford it– so we give gov. subsidies to the companies– without audits of the financials, and then the city decides to put in ‘wireless’ in areas because no one can afford it, or in areas that were never finished? (Some other NYC proceeding.) or the construction for fiber is now being diverted to wireless, illegally since it is title II. (a fact that directly contradicts the Net Neutrality issue.) — And under the new mayor, is this NYC Administration going to do fines or call for investigations of the books or… ?

And, we see the foresight at work — July 16th, 2023 is a Saturday. –And no. FWA Wireless is not a substitute for a fiber to the home service, which we expect will filed, if it hasn’t already. it is a bait and switch.

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FACT SHEET: Verizon Massachusetts Fiber Optic Failure

FACT SHEET:

Verizon Massachusetts Fiber Optic Failure, 1994-2020

1994: Verizon
Massachusetts
files with the Mass Department of Public Utilities to have fiber optic
services
, to replace the existing copper wires. The included colleges and
universities, hospitals, as well as 330,000 residence and businesses.

1994: This same plan
was also filed with the FCC known as “Video Dialtone”, and claimed
the majority of the entire state would be finished by 2010.

“NYNEX
proposes to deploy hybrid fiber optic and coaxial (HFC) broadband networks that
will provide advanced voice, data, and video services, including interactive
video entertainment, multimedia education and health care services… “NYNEX
plans to deploy this type of network to the majority of its customers by the
year 2010.”

1995:
Verizon filed and was granted “alternative regulations”, which gave the company

1999: In
New Networks institute filed a complaint in
Massachusetts
outlining how Verizon (then New England Telephone) convinced
regulators that they would rewire the state starting in 1995 if the company got
massive financial incentives – Deregulation — the removal of regulation that
examined and limited their profits. The Massachusetts Department of
Telecommunications and Energy, never acted on our complaint.

2005: Verizon announces FiOS and gets some municipality franchises
for cable TV

2007: We presented
testimony
in front of the Massachusetts Joint Committee on
Telecommunications Utilities and Energy.

2010: Verizon announces it is halting the fiber optic deployments
in all states.

2016:  Bait and Switch: Verizon announced it would
be upgrading 100% of Boston
and spend $300 million dollars.  Instead,
most of this has been a bait and switch to use the fiber optic wires that
should go to homes to instead roll out wireless, and 5G Wireless.

We
documented the story in articles in Huff Post and Medium.