National Broadband Plan: Follow the Money; Take Back the State Public Utility Telecommunications Networks.

  • ( Division 1 enacted by Stats. 1951, Ch. 764. )
  • ( Part 1 enacted by Stats. 1951, Ch. 764. )
  • ARTICLE 1. Specified Utilities [1001–1013] ( Article 1 enacted by Stats. 1951, Ch. 764. ) 1001.
  • “Local Service” — basic phone service over the copper wires
  • “Access Service” — the wires to the cell sites, or ‘Business Data Services’, used by banks for ATM machines, or the ‘guts’ of the networks.
  • “Nonregulated” — are services not regulated, like FiOS video or VoIP phone service.

IRREGULATOR TREASURE MAP; Hiding a $5 Billion State Telecommunications Utility that No One Even Knows Exists.

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  • Obscenely Excessive Corporate Operations Expenses — These reports show massive financial hanky-panky that cost New Yorkers billions in overcharging. Verizon NY Local Service revenues from basic phone service were about $1.1 billion yet it was charged $1.8 billion in ‘Corporate Operations expenses’ in 2017, representing 61% of the total. These expenses are for the corporate jets, executive pay and lobbyists and lawyers to push 5G or to stop Net Neutrality and have nothing to do with Local Service provisioning.
  • This percentage, 61%, is directly attributable to the manipulation of the FCC accounting rules and they were set in the year 2000.
  • 75%-25% Rule dumps 75% of the construction expenses into the local wired networks while the other lines of business pay a fraction of the expenses. For the last 20 years, because of this freeze, and this 75–25%, rule, the construction expenses were paid for by local phone customers — even for FiOS, even for the wireless networks. This cross-subsidizing of these lines of business are occurring because they are based on the FCC rules.
  • Every FCC decision and every state decision pertaining to telecommunications, broadband, internet, wireless and cable have been based on basic fundamental, structural flaws:
  • The FCC left out all references that there is a state-based utility. All FCC decisions have neglected to include any basic information about the state-based telecommunications utilities — There is no mention of the decades of collecting billions per state for fiber optic upgrades of the state utility or charging local phone customers multiple rate increases to fund networks they never received.
  • The FCC deformed rules created deformed FCC analyses and deformed public policies. Besides leaving out the state financial information (or even broadband commitments), the data presented by the FCC is based on the results of the rules — thus, 75% of the construction ‘investment’ is not from investors but from local phone customers being overcharged.
  • We want to solve the Digital Divide — Let’s get the money back.
  • We want high-speed fiber optic broadband in America — Let’s stop the cross-subsidies and build out America.
  • We want competition, lower rates and the companies to be held accountable — now.
  • Follow the Money: We do not want to give these companies another cent of government funding until there has been a full audit of the accounting.



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Bruce Kushnick

Bruce Kushnick


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