The Emperor Has No Clothes: The State Public Telecom Broadband Utility, Exposed.

This chart is from the Verizon NY 2020 Annual Report, published May 28th, 2021. It relies on the FCC USOA accounting formulas that are used in every state we examined, from CA and OH and MI, to OR, WA, and even MS and Colorado, PA, NJ, MA, MD, and NY.

This summary goes through the financials using numbered “lines” and “columns”. Even the most number-adverse person should attempt this because it shows how to fund and fix the Digital Divide, and with enough money to build out entire cities and states, as well as create ‘awards’ for digital inclusion education, etc., and to lower rates. And it should lead to opening these public broadband utilities to all forms of competition.

And yet, no one knew there are telecom utilities. — Here’s the proof.

We note: There is no plan on the table that examines the actual financial books of the state utilities and halts the subsidies. And all of the plans to give government subsidies do not fix the core, repeating problems.

WE DID NOT CREATE THESE FINANCIALS — THEY ARE VERIZON NY, the telecommunications public utility. And there is a public telecommunications utility in every state — hiding in plain sight, and hiding the corrupted accounting you will see for your self.

By the Numbers

Verizon NY 2020 Annual Report — This page is Schedule 9, and it shows 3 lines of ubisness (We left out some items for simplicity and renamed a few to match the ‘common names used in 2020, but changed no number.


Corporate Operations: (LINE 5) includes the corporate jet, executive pay, lawyers and lobbyists. — Local Service paid $833 million, 61%, of the total.

Construction & Maintenance: (Line 2) Local Service uses the existing copper wires and it is no longer being marketed. Yet,

Local Service was charged 47%, $1.1 billion dollars; of the construction and maintenance expenditures (Line 2 Column F). Local Service most likely spent only $50-$125 million on the network, at best; the rest of this has been diverted, most likely for Verizon Wireless.

This is the reason cities and towns in upstate New York were never properly upgraded — They left out rural areas and used these construction budgets for wireless.



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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.