Break Up Big Telecom: Separate Wireless from the Wireline Telecom Public Utilities.

Our Take: Halt the Cross-Subsidies and Get the Money Back to Solve the Digital Divide. Fund Open, Symmetrical Fiber Networks to Everyone at Affordable Rates.

We do not need to give these companies that failed to deliver and overcharged America, and left the networks to deteriorate, any more government subsidies.

  • $23 billion annually has been diverted to fund the wireless subsidiaries’ construction expenses instead of upgrading cities and towns throughout America; this includes over $6.2 billion in access fees to use the networks.
  • $216 billion was charged to the state telecommunications public wireline utilities over the last decade for wireless construction expenses.
  • $1.4 billion was charged to Verizon NY annually in construction costs that were not used for local service, which includes $237 million in “access” fees and other charges competitors pay and Verizon underpaid.
  • $15.2 billion, estimated, over a 10-year period was overcharged in just New York for wireline construction but instead these funds were diverted to wireless construction.

WHAT NEEDS TO HAPPEN NEXT? BIG TELECOM CASES

  • The IRREGULATORS are calling for the United States Department of Justice and the state Attorney General offices to start antitrust cases against AT&T, Verizon, CenturyLink, and their subsidiaries.
  • The outcome must be to separate the wired state telecom utilities from the holding companies’ control.
  • All of the subsidiaries, including wireless, the ISP/broadband access, business data services and enterprise subsidiaries, along with all of the other media, advertising and entertainment businesses, shall be completely separated so that any business dealings with the utilities are no longer privileged and and all financial transactions shall be conducted at arms length.
  • Subsidiaries shall pay market prices and shall be considered like any other unaffiliated company wishing to use the state telecommunications utilities’ infrastructure and the public rights of way.
  • All network infrastructure that was paid for via the state telecom local service construction budgets, which is property of the state telecom utility, and subsidiaries must reimburse the utility for all associated costs and for the continuing use of utility services.
  • All subsidiaries must also pay for the use of the public rights of way along with all access fees, including billing and collection services provided by the utility.
  • All “Business Data Service”, “Special Access” and “Backhaul” networks that were funded by the telecom utility are the property of the utility, including the wires to the cell sites, the fiber to home/node, and any other backhaul service and the subsidiaries must pay the utility for their ongoing use.
  • All monies charged to the phone, broadband and internet customers through these subsidiaries shall be treated as de facto investors and shall be made whole.

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Bruce Kushnick

Bruce Kushnick

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New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 40 years, and I have been playing the piano for 65 years.