Solve the Digital Divide by Halting Billions in Cross-Subsidies: Verizon NY 2019 Annual Report

Excerpt of the Verizon New York 2019 Annual Report

We estimate that Verizon NY Local Service was overcharged an estimated $1.1-$1.6 billion, in just 2019, for just three expense items; Construction & Maintenance, Corporate Operations expenses and Marketing. (This is the low number.) Nationwide, this equates to Local Service being overcharged in America an estimated $16-$23 billion in just 2019.

This is PART 1:

  • On March 13th, 2020, IRREGULATORS v FCC, was a win for the American public. The IRREGULATORS had filed since 2015 to have the FCC fix their accounting or acknowledge, in writing, that they do not apply — or that there were no other ‘strings attached’. The DC Court of Appeals made it clear that the states are now independent to devise a new set of accounting requirements and not use the FCC’s formulas.
  • On June 8th, 2020, Verizon also filed a Motion with the NY Public Service Commission to hide, (they call it ‘redact’), basic financial and business data.
  • On June 30th, 2020, the IRREGULATORS filed comments to block Verizon NY’s Motion and are now calling for investigations.
  • “Local Service”: (“NY State”, Column F) are the “intrastate” revenues. These are mainly the copper-based basic residential and business local phone service.
  • “Backhaul”: (“Other”, Column G) are also called “Special Access” and “Business Data Services”. These can be the wires to the bank ATM machines and data services or they can be the fiber optic wires to the cell sites and 5G.
  • “Nonregulated” services (“Column C”) is a catchall for VoIP or FiOS video, and other services that were never regulated.



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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.