Have you heard the one about the $200B hole in taxpayers' pockets?

Summary:John Paczkowski at Good Morning Silicon Valley does a good job summarizing a scandalous $200 billion promise gone bad: ....during the buildup to the 1996 Telecommunications Reform Act, the major U.

John Paczkowski at Good Morning Silicon Valley does a good job summarizing a scandalous $200 billion promise gone bad:

....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.

If it's true, who is to blame? Well, for starters, obviously the Baby Bells need to account for their actions.  My question? Who in the Federal Government follows up on stuff like this?

Topics: Fiber

About

David Berlind was fomerly the executive editor of ZDNet. David holds a BBA in Computer Information Systems. Prior to becoming a tech journalist in 1991, David was an IT manager.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.