AT&T CEO: Government Should Pay $60–80 Billion for Broadband; IRREGULATORS: Government Must Halt the $80 Billion a Year in Overcharging by AT&T-Big Telecom.

How much money have you, your family, friends, business, the city you live in, your neighbors, the State and even America been overcharged by Big Telecom & Big Cable over the last 3 decades?

  • Accounting Manipulation: The companies were able to manipulate the FCC cost accounting formulas to make the state utility into a cash machine to illegally fund all of the other lines of business, which started in 2001.
  • Wireless Bait & Switch: Using accounting formulas that have become corrupted, the wireless business was able to divert the state wired constriction budgets for wireless instead of maintaining and upgrading rural areas and inner cities.
  • Failed Broadband Commitments: Starting in 1992, the companies made commitments replace the existing copper wires of the state utility with fiber optics; state laws were changed to give AT&T et al. billions to do upgrades, which never happened. However, this pattern happened multiple times.
  • Harvesting Local Customers: The companies’ manipulation of the accounting rules and a failure of state and federal regulators to conduct any audits their financial documents have allowed basic phone customers to be hit with 150% rate increases, and add-on increases of 50–525% — Prices have increased continuously for the last 15 years.
  • Added Made Up Fees: Broadcast TV and Sports Fee and Cost Recovery fees are not government mandated, are not audited or even reviewed, and without competition, continually rise.
  • America’s Prices for Triple Play and Wireless with Overseas are 5–20 times more expensive. We compare the pricing of the European Union and the US, showing how much we are overcharged.
  • Business Data Services Overcharging. The guts of the networks, the wired used for wireless cell sites or competitors have been kept extremely profitable due to price inflation, thus making all US services be overcharged.
  • $22.7 billion dollars in overcharging from add-on “Cost Recovery Fees” and the cable “Broadcast TV & Sports Fees”, now at $10-$30 a month.
  • 300 million wireless subscriptions pay an extra $30- $42.00 a year.
  • $11.8 billion dollars annually we attribute to the harms of harvesting basic phone landline customers with continuous rate increases for 15 years.
  • 35 million customers may be overcharged $25–30 a month, $300–360 a year, but it could be as much as 100 million total customers.
  • $2,700-$3,200 per line, we estimate has been overcharged since 2006.
  • $31,000,000,000 in Annual Overcharging
  • Verizon NY’s 2019 Annual Report showed that BDS, which uses the state utility infrastructure, had a profit margin of 55%.
  • $80–100 billion in revenue is hiding in plain sight. There are no FCC or state reports that detail the size, scope and cross-subsidies that are evident.
  • Hundreds of millions of access lines are also hiding. In 2007, the FCC stopped publishing the number of copper and fiber optic ‘special access’ lines in service — -that resulted in $80 billion dollars in revenues with zero published lines in service — and the FCC’s last data showed that ½ were copper-basic phone lines that were reclassified to NOT be counted as an access or phone line.
  • $53 Billion in Annual Overcharging. BDS overcharging combined with all of the other cross-subsidies of AT&T et al., totaled $53 billion a year in 2017, in large part because the companies still use the distorted frozen allocations, and Verizon NY is required to publish an annual report. Because the companies still use the same accounting, we assume that the overcharging in NY matches the other states, with caveats. (This did not include specific overcharging pertaining to the cable TV companies.




New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.

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bruce kushnick

bruce kushnick

New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.

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