WORTH READING Free Press Proposes Broadband Infrastructure Bailout of $44Billion --- More Taxes to Give Wealthy Companies that Failedto Build Out Their Networks]

[David Farber <dave () farber net>]

Begin forwarded message:

From: "Bruce Kushnick" <bruce () newnetworks com>
Date: December 30, 2008 7:42:04 PM EST
To: <dave () farber net>
Subject: RE: [IP] Re:   Free Press Proposes Broadband Infrastructure  
Bailout of $44Billion --- More Taxes to Give Wealthy Companies that  
Failedto Build Out Their Networks]


I don't think most people understand just how we got played about  
broadband
deployment and now just want to raise taxes to give companies that  
failed
us.

Dave wrote:
> 2. promises will be made that will not be kept ( remember the promises
.made in Pennsylvania and not kept)

Here's a 1996 press release from Verizon --- About PA and the rest of  
their
territories...

http://newscenter.verizon.com/press-releases/bell-atlantic/1996/page.jsp?ite
mID=29607541

> Bell Atlantic plans to begin its network upgrade in Philadelphia and
> southeastern Pennsylvania later this year. The company plans to  
> expand this
> Full Service Network deployment to other key markets over the next  
> three
> years. Ultimately, Bell Atlantic expects to serve most of the 12  
> million
> homes and small businesses across the mid-Atlantic region with  
> switched
> broadband networks.

Each state was given
a) massive tax deductions - billions per state --- and changes to
depreciation so they could write off the copper plant -- which was never
replaced.
b) the removal of regulation on profits, so that the profits went from
12-14% to 29% ---
c) No regulator went back and got the money, which is still being  
collected
today in virtually every Verizon state.

And in the rural areas, most of the rural carriers have received massive
financial help from the USF fund -- and many have obscene profit margins
because of it.

The reason we don't have broadband is because these companies can say
anything, then not do anything... giving them more money is simply  
throwing
it away. It will not increase broadband deployment as there will be no
mechanism to compel them once they got the money and no regulator with
enough moxey to do anything about it...

History, not hope, is what we should be examining...

Bruce Kushnick.






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