Did Governor Cuomo Sell Out NY State by Killing Off a Multi-Billion Dollar Investigation of Verizon NY & Verizon Wireless?

  • Part 1: Verizon has left the state copper-based utility networks to deteriorate and there has been a lack of upgrades to broadband or even maintenance of the existing networks.
  • Part II: There is a massive financial shell game between the state utility, Verizon NY, and the other Verizon subsidiaries, especially Verizon Wireless.
  • Verizon NY Didn’t Pay Most Taxes: From 2010–2016, Verizon NY lost $15.7 billion dollars and didn’t pay most taxes. Instead, Verizon had tax benefits of $7.2 billion. How did the state utility lose billions every year?
  • The Utility Illegally Funded the Wireless Networks. There is a massive financial shell game afoot that has local phone customers and others who use the wired networks fund parts of the Verizon Wireless network buildouts with construction budgets paid for and done by the state utility, Verizon New York.
  • From 2010 to 2012, alone, Verizon New York paid about $2.8 billion to build out the fiber optic wires used by Verizon Wireless — and that money was charged to local phone customers, not paid for by Verizon Wireless.
  • Local phone customers paid over $1000.00 extra, per line, in rate increases from 2005 to 2015.
  • Worse, local phone customers have been paying around $500 extra a year based on the fact that the actual costs to offer the copper-based services should have been in steep decline, and prices should have followed. It didn’t happen.
  • Instead, low income families, seniors, small businesses, people and cities in rural areas — everyone paid thousands of dollars extra to build out the Fiber-to-the-Premises, (FTTP) wires first to be used by FiOS, services that these customers may never get. However, post-2010 through cross-subsidies, customers also paid for some/most of the wires to the cell sites. Cities were not wired because of this and there is no serious cable competition. And all services, from wireless to broadband, have been overcharged via this financial shell game.

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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.