"The Big Telecom Complaints": Uncovering One of the Largest Scandals in Telecom History

In a bid to expose one of the largest scandals in telecom history, New Networks Institute (NNI) and a group of leading technologists, companies, and concerned citizens have filed a comprehensive complaint with the FCC and Congress against the Bell companies and GTE. Dubbed "The Big Telecom Complaints", the document, subtitled "How the Bells Stole America's Digital Future", outlines a staggering $45 billion bait-and-switch where the Bell companies promised to deliver advanced, fiber-optic networks to secure state and federal laws, but never deployed them, instead keeping the funds and overcharging customers.

Key Takeaways:

• The Bell companies have allegedly promised to deliver advanced, fiber-optic networks to secure state and federal laws, but never deployed them, keeping the funds and overcharging customers, resulting in a staggering $45 billion loss for consumers.
• In many states, these new laws also required the Bells to wire schools, hospitals, and libraries and bring advanced network services to disadvantaged neighborhoods, which were never fulfilled.
• The Bells have written-off the older copper wiring, claiming it was being replaced with fiber optics, taking almost $21 billion dollars in tax deductions.
• NNI's research indicates that this bait-and-switch occurred in virtually every Bell territory, and the FCC's next advanced network report should include hundreds of documents that expose the truth.
• The complaint requests the FCC investigate how the Bells are currently stifling competition by harming competitors, including Internet Service Providers (ISP) and CLECs (Competitive Local Exchange Companies).
• NNI's pilot survey of Internet providers found clear indication that the Bells have been delivering sub-standard customer services to the companies that are trying to provide competitive local DSL services.

Statistics:

• Estimated total to date garnered from the Bell companies' bait-and-switch is a staggering $45 billion.
• The Bell companies have written-off the older copper wiring, taking almost $21 billion dollars in tax deductions.
• NNI's pilot survey of Internet providers found that 100% of companies experienced problems with the Bells' sub-standard customer services.
• The FCC's next advanced network report should include hundreds of documents that expose the truth, according to NNI.

Sources:

• Bruce Kushnick, Executive Director of New Networks Institute,
• Peter Brennan, Co-Chair, Billing Reform Task Force,
• Jerry Michalski, founder of Sociate,
• The New Jersey Ratepayer Advocate,
• Economics & Technology, Inc.