Friday, February 03, 2006

$200 Billion to Beat Out Slovenia

The Good Morning Silicon Valley blog points to an article by Bruce Kushnick called, "$200 Billion Broadband Scandle."

From the GMSV blog:

"...during the buildup to the 1996 Telecommunications Reform Act, the major U.S. telcos promised to deliver fiber to 86 million households by 2006 (we're talking about fiber to the home, here). They asked for, and were given, some $200 billion in tax cuts and other incentives to pay for it. But the Bells didn't spend that money on fiber upgrades -- they spent it on long distance, wireless and inferior DSL services."

They pull some highlights:
  • By 2006, 86 million households should have been rewired with a fiber optic wire, capable of 45 Mbps, in both directions.
  • The public subsidies for infrastructure were pocketed. The phone companies collected over $200 billion in higher phone rates and tax perks, about $2000 per household.
  • The World is Laughing at US. Korea and Japan have 100 Mbps services as standard, and America could have been Number One had the phone companies actually delivered. Instead, we are 16th in broadband and falling in technology dominance.
From Bruce's paper:

The case is simple: Do you have a 45 Mbps, bi-directional service to your home, paying around $40? Do you have 500+ channels and can choose any competitive service? You paid an estimated $2000 for this product even though you did not receive it and it may never be available. Do you want your money back and the companies held accountable?

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