NOTE: Our take; New York City doesn't have a broadband plan and while there
are those who care, nothing serious is being proposed that will fix the
problems. We heard testimony that Verizon has failed to bring even DSL to
various parts of Brooklyn, the Bronx and Queens.  We want investigations to
get the $5-$12 billion back to be used to pay for new upgrades. We've put up
over 20 new links to original materials --- see below -- and our
presentation is on U-Tube.  -- This is not a NY but a nationwide problem.

Favorite link: Verizon claimed in 1993 it would be rolling out ‘fiber to the
curb’ to 1.5-2 million homes by 1996 - NYNEX 1993 Annual Report.
http://www.newnetworks.com/nynexfibercurb1993.htm        
==============================================================
Teletruth NEWS Alert: May 25th, 2007

Teletruth Testimony in front of the New York City Council's Broadband
Advisory Committee, 

To read the testimony with links to materials: 
http://www.teletruth.org/brooklynbroadband.htm         
To see the speech on U-Tube: 
http://www.youtube.com/watch?v=N_6EiEMLDQc        


BROOKLYN BROADBAND & AFFORDABLE, UBIQUITOUS INTERNET? GET THE MONEY BACK.

(Check out the new links below.)

Teletruth believes affordable broadband and Internet services are essential
for New York City’s economic growth. I assume everyone else in this room
would agree. And how do we make ubiquitous broadband affordable? I'd like to
focus on this. --- We believe New York City should get back the estimated
$5-6 billion from Verizon, $10-12 billion statewide. 

New York City was Number One when the Internet hit and now America is 15th
in the world in broadband and we sit here wondering why? 

Verizon has overcharged customers in multiple ways, as well as failed to
deploy fiber- based broadband after receiving massive financial incentives.
Through bad deregulatory policies, the PSTN, that’s the Public Switched
Telephone Networks --- the utility --- which is supposed to make sure that
deployment of telecom services are competitive, ubiquitous and affordable,
has been hijacked by Verizon (and AT&T). 

This has caused net neutrality issues, cable franchising issues, and the
Digital Divide, not to mention overcharging customers and direct economic
harms to New York City --- and Brooklyn.

Verizon and AT&T claim they ‘own the pipes’, even though they are still
receiving the benefits of a utility. We believe – Get back the money back
and remove the perks. 

In our original presentation to the NY City Council in 2002 we made many of
these points and there has been no investigation of our claims. It is 5
years later and nothing has changed. Maybe it is time to take action. See:
http://www.newnetworks.com/NYCspeechfin.htm       

Let’s go through the facts: Direct from the sources: 

Commitments and Promises: 

1) Verizon claimed in 1993 it would be rolling out ‘fiber to the curb’ -
NYNEX 1993 Annual Report. http://www.newnetworks.com/nynexfibercurb1993.htm


2) Verizon claimed it would have 1.5-2 million lines installed by 1996 -
NYNEX 1993 Annual Report
http://www.newnetworks.com/nynex2millionlines1993.htm         

3) Verizon also snowed the Public and the public service commissions. Here
is the PSC “Staff Report Assessing Network Modernization Needs”, based on a
NYNEX report ”Vision of the Future” 1992.
http://www.newnetworks.com/nypscfiberreport1992.htm          

4) NYNEX’s was supposed to have about 16% of the state finished by 2000.
http://www.newnetworks.com/nypscfibernumbers.htm         

5) Verizon’s other promises: Maryland The PSC report shows that Maryland was
supposed to have 100% fiber to the home completed by 2010
http://www.newnetworks.com/nypscmarylandfiber.htm         

6) Verizon’s other promises: New Jersey: The PSC report shows that NJ should
have 100% fiber to the home “Broadband” completed by 2010
http://www.newnetworks.com/njoppotunityfromnypsc.htm        

7) 45mbps: The definition used in the NJ state report clearly shows that
“Broadband” was 45mbps, capable of high definition video in both directions.
– 1993 NJBPU Par 1 http://www.newnetworks.com/nj45mbpspar1.htm        

8) Bell Atlantic claimed it would have 8.75 million homes wired by 2000, and
its plan was to go to each state to get “incentives to invest in new
technologies”;-- 1993 Bell Atlantic Annual Report.
http://www.newnetworks.com/bellatlantic1993fiberplans.htm         

ADDED: 

8a) In 1996, Bell Atlantic announced 12 million homes by 2000, including
Philadelphia and Pittsburgh.
http://newscenter.verizon.com/press-releases/bell-atlantic/1996/page.jsp?ite
mID=29607541        

8b) In Massachusetts, Verizon promised in 1994 to have 330,000 households
wired immediately, the entire NYNEX territory by 2010.
http://www.newnetworks.com/Massachusettsdeceptivefiber.htm        

8c) By 2000, Pacific Bell had made commitments to rewire 5.5 million homes
in California. http://www.newnetworks.com/cabroadbandpacbell.htm       

8d) Pac Bell closure: According to the San Diego Tribune, by 1997, after the
merger of Pac Bell and SBC, all of the plans were closed down.
http://www.newnetworks.com/californiabroadband.html        

8e) Ameritech claimed it would have 6 million homes rewired by 2000.
Outcome: Instead it rolled out vanilla cable competition, then SBC sold off
the properties in a fire-sale to WOW.
http://www.newnetworks.com/ameritech1994annualreport.htm        

Outcomes: Massive increases to local rates, long distance rates, added
questionable charges.

9) Aunt Ethel’s phone bill: 1980-2006 reveals an increase of 426% since the
break up of AT&T and deregulatory policies--- source: Brooklyn Verizon phone
bills.
http://www.niemanwatchdog.org/index.cfm?fuseaction=ask_this.view&askthisid=0
0233        

10) AT&T and MCI harvesting Customers – AT&T and MCI are now raising rates
and attempting to have customers discontinue services.
http://www.newnetworks.com/attmciharvesting.htm         

11) Dirty Little Secrets: Virtually every charge on the phone bill has had
unwarranted increases. http://www.newnetworks.com/dirtyphonebill.htm


Get the Money Back: 

12) $2.4 billion in Missing Equipment has been added to rates: State PSC
report: ‘Review of FCC’s Audit of Continuing property records” 2001.
http://www.teletruth.org/docs/NYplantdoc10309.pdf   

13) The Report found $634 million in missing equipment and that was only ¼
of the potential audits that should have taken place. --- The NY AG’s office
never got back to us. http://www.newnetworks.com/nypscaudit.htm         

14) Cross –Subsidization: A report by NASCUA (National Association of State
Utility Consumer Advocates) found billions being ‘cross-subsidized: I.e.,
the phone company is charging local rates to fund DSL, wireless and long
distance services, and even FiOS.
http://www.nasuca.org/newsroom/NASUCA%20Separations%20Comments%20PR.pdf


15) Cross-subsidization, NYC: The phone bill insert is only one of hundreds
of items that customers are paying for while Verizon gets a free ride. The
411 networks, free rights of way and other ‘utility’ perks should be
removed. --- How much money is lost?
http://www.newnetworks.com/verizoninsert.htm        

16) $2.3 Billion tax deduction for fiber deployments. New York Tel took a
$2.3 billion tax deduction for fiber upgrades 1995 Annual Report. Verizon
took a $3.5 billion dollar deduction for poles and other items.
http://www.teletruth.org/docs/NYNEXDepreciation.doc       

17) Ca. PUC found $1.94 billion in added fees during an audit for
cross-subsidization of executive compensation, merger expenses, legal fees.
– DO THIS AUDIT.
http://www.cpuc.ca.gov/PUBLISHED/COMMENT_DECISION/29330.htm#P948_207131


18) Audit the phone bills: The District of Columbia’ audit of telecom
expenditures found $10.4 million in overcharging--- Audit NYC's bills
http://www.newnetworks.com/DCAuditRefundEstimate.htm        

19) FCC Data wrong on broadband and phone bills: We have filed multiple
complaints against the FCC’s data. 200Kpbs is NOT the 45mbps standard of
broadband as told in 1992 or missing 1/3 of the US hit with major phone bill
increases went unnoticed.
http://www.newnetworks.com/Teletruthdataqualityfilings.htm         

Impacts on Net Neutrality, Digital Divide, Cable Franchise Utility vs
Deregulated monopoly.

1) Failure to deploy: Cable prices should have declined. America spent $82
billion because the phone companies failed to deploy a competitive broadband
service. NYC: $3.5 billion 2) Economic Harms to Growth: The Bell companies
claim that there would be a $500 billion increase to economic growth from
broadband--- Thus, $5 trillion dollars was lost because Verizon-ATT failed
to deploy.--- Over $215 billion for New York City.

3) Cable franchising: The phone utility had obligations to upgrade ALL parts
of the state, and was ‘open’ to competition. FiOS is a closed network and
wants to pick and choose.

4) Net Neutrality: There’s no problem; Return the utility to ‘common’
carriage. http://pulverblog.pulver.com/archives/003680.html        

5) If the companies want to ‘own’ the networks, take away all utility perks
and do the wiring or wifi-ing ourselves. 

6) What is the actual cost of local service? What utility perks does Verizon
enjoy? How much extra money did Verizon garner from deregulatory policies to
promote broadband?

Conclusion: Get the money back and use it to give New York City the premier
affordable networks for ALL customers. 

Bruce Kushnick, Teletruth
[EMAIL PROTECTED]       












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