The Backdrop to America’s Fiber Optic Fiasco.

Verizon Pennsylvania 45Mbps Speeds to 100% of the territory
  • Verizon NJ and Verizon PA are state-based telecommunications utilities.
  • There was supposed to be full coverage of fiber optic wired upgrades, replacing the copper wires to all customers who were in the utility franchise area.
  • The speed was 45Mbps.
  • The speed was to be delivered in both directions.
  • It was not like a DSL connection where the speed is only fast in 1 direction.
  • These Commitments started in 1992–1994 but were still in place in 2014–2015 in both states.
  • No Section 706 report in any year ever examined these state-based price capped regulatory models and Verizon’s utter failure to deliver.
  • The FCC has never acknowledged that there are public state telecommunications utilities in America.
  • The FCC never examined the financial books of these utilities.
  • The FCC has never examined how their own financial formulas (which were set to reflect the year 2000), are still in use and have become distorted.
  • The FCC has never examined how their own financial formulas now put the majority of all expenses into the state public utility ‘local service’ category, making the entire US critical infrastructure appear unprofitable.
  • The FCC has never examined the cross-subsidies between and among the wireline, state-based utility and the Wireless separate subsidiary. This includes billions of dollars — per state — being illegally diverted to fund the construction budgets of the wireless networks build outs.
  • The FCC has never examined the financial books of the only state we know of that still is requires a financial report of the state utilities, — in this case, Verizon NY.
  • The FCC has never examined how Verizon’s Fiber to the Home, FTTH, used for FiOS, has been illegally funded via local rate increases and it is classified as a ‘Title II’, Common Carrier service — i.e., the ‘investment’ was being an overcharge to the local phone rates.
  • The FCC never examined the violations of the ‘forbearance’ agreements with AT&T, Verizon or CenturyLink, which freed the companies from specific regulations and obligations in book-keeping. Nor did the FCC examine how the companies failed to disclose how their regulated networks were improperly subsidizing the non-regulated networks.
  • Verizon NY Local Service had $1.1 billion in revenue, about 21% in 2017, and the total revenues of Verizon NY were about $5 billion. These are mostly the copper wires, sometimes called “POTS” lines, “Plain Old Telephone Service”.



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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.