Close the Digital Divide with No Government Subsidies; Get the Money Back from those Who Created It — Verizon, AT&T et al. — Big Telecom

  • DOWNLOAD the Verizon NY 2020 Annual Report (Spreadsheet), and the IRREGULATORS Analysis and “How to Read the Report — Walk-through”.
  • How Much are We Talking About? The scale of how much money has been manipulated, for just one year, in just New York, is mindboggling —
  • Local Service and the state utility were overcharged an estimated $925 million in corporate operations and marketing expenses, in just New York, in just 2020.
  • Verizon NY Local Service was overcharged an estimated $1.02 billion due to the construction and maintenance expenses put into Local Service budget.
  • This Is Verizon NY’s Data: Not Ours: The financials that detail this massive cross-subsidy scheme comes from Verizon NY’s own annual report, filed with the NY Public Service Commission. (NOTE: We did not generate these financial reports, but for presentation purposes, we streamlined some of the entries and added their ‘common names’. For example, “Backhaul” is called “Other” in the annual report.)
  • Every State has a Primary Telecom Broadband Utility, and as far as we can tell, every state is still relying on these corrupt accounting formulas.
  • State Telecom Public Utilities are the Copper as well as Fiber Optic Wires. The state infrastructure includes both the existing copper ‘legacy’ networks as well as the fiber lines. Verizon’s fiber to the home (premises), ‘FTTP’, networks were created as part of the existing telecommunications public utility.
  • America Was Supposed to be a Fiber Optic Nation by 2010, State by State. Announced as the “National Infrastructure Initiative”, and commonly known as the “Information Superhighway”, the Clinton-Gore campaign in 1991 announced a plan to have America’s state utilities’ copper wires be replaced with fiber optic wires, completed by 2010. By the end of 2014, we estimated that $400 billion had been overcharged, as increases on customers’ bills or tax perks. Though it varies by state, most of the networks were never built by what are now AT&T, Verizon and Centurylink — By 2021, it is well over $½ trillion dollars in customer overcharging.
  • How Do We Prove that Local Service Was Charged the Majority of Construction? The information pertaining to the investments in the networks shows that 73% of ‘work in progress’, was put into Local Service in 2020, and overall, over 60% of the total for Verizon NY was charged to the service. But, these funds DID NOT go to upgrade the basic, copper-based phone service.
  • How Do We Know Verizon Wireless Never Paid Market Prices to Use the Networks or for the Construction? The ‘affiliate transactions’, information (where other subsidiaries pay Verizon NY for some service — or it pays another Verizon subsidiary), shows no payments that would cover the estimated $1 billion or more in repayments for the construction or use of the networks.
  • DO THE MATH: Nationwide Overcharging. Though it varies by year and by state, for these basic financial items — overcharging via Corporate Operations expenses and the diversion of the construction budgets, nationwide, we estimate that it is over $20 billion in annual overcharging. See the state-by state estimates, and the estimated national overcharging caused by Big Telecom & Cable in America in 2021.
  • No More Government Subsidies: Get the Money and Networks Back. Isn’t it time for our elected officials and the state and federal regulators, including the FCC, to do their job? With plans being discussed by Congress that would pay out $40 billion, $65 or $100 billion to fix the Big Telecom-Cable-caused-‘Digital Divide’, not to mention the state broadband plans, (with some of these plans being just another gift of taxpayer funds to Big Tel), shouldn’t we finally go after the cooked corporate books and instead use the money to serve the towns, cities, counties and states with wireline fiber optics to ALL citizens are reasonable rates?
  • What happened in your state?




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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