Verizon’s ‘One Fiber’ Scam for 5G Wireless: Did Verizon Fool the Public and Investors?

  • According to former Verizon CEO Lowell McAdam, Verizon decided to go ALL wireless and “Cut Off the Copper” in rural areas, 2012.
  • Verizon was moving customers to wireless because it makes the company more profits, 2012.
  • In 2012, Fran Shammo, former Verizon CFO, told investors that the wireless company’s construction expenses have been charged to the wireline business.
  • In 2012, the NY Attorney General confirmed that wireless and FIOS cable were funded via the state utility construction budgets. In 2011, Verizon NY stated that the company spent over $1 billion on the utility capital investment. The NY Attorney General claimed that 75% of the expenses for wireless and fiber optic cable networks were being charged to the state utility.
  • Verizon NY received rate increase after rate increase on basic service, starting in 2006 for “massive deployment of fiber optics” and “losses”. The fiber, by 2012, went to wireless, not homes, and the losses were created because the wireless company didn’t pay for this construction or pay market prices to use the networks.
  • The Fiber to the Home (Fiber to the Premises, “FTTP”) used for FiOS is a “Title II”, common carrier service and part of the state utility, as told by Verizon’s FiOS cable franchises. Title II allowed Verizon to add the fiber to the home as Local Service costs, which, in turn, were charged to local phone customers.
  • In 2016, Verizon CEO Lowell McAdam, stated at an investor briefing that using the fiber optic wires for FiOS for wireless helps to eliminate staff, and cuts expenses to do fiber to the home installs with a wireless substitution.
  • 5G nationwide deployment construction expenditures will remain being paid by the wireline networks.
  • “One Fiber” plan is now a euphemism to put expenses into the wireline budgets.

“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.”

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