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

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.

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TOPICS: Fiber
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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?

Topic: Fiber

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5 comments
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  • I have your answer!!

    Ummm, no one really. Well that isn't true, but who is going to be honest enough to say they got a piece of that $200 billion to not look very close???
    No_Ax_to_Grind
  • $200B hole

    The Federal Government doesn't seem to have to follow any rules or answer to the taxpayer so why bother track a mear $200B. They can just say hey we need X amount of $$ and boom there it is. Who is going to stop them. They have gotten out of hand and there is no stopping them now.
    disc1@...
    • Well, isn't that curious...

      Wait a minute. Aren't these the same telcos asking to charge Google, Yahoo, and the like premiums for providing "high quality bandwidth", as AT&T Chairman Edward Whitacre noted in a Business Week interview in November, for "anybody to expect to use these pipes (for) free is nuts!". Or, of course, the recent Washington Post report in which a Verizon executive said Google and others shouldn't expect to enjoy a "free lunch" on its pipes.

      Free lunch? We've already paid for the majority of this, including everyone who DOESN'T have access to the internet. Demand a refund!!
      jabuss@...
  • Tax Cuts given to Corporations Never Work

    Never Never
    mjbad2
    • If you and I didn't >>>>

      Right on mjbad2. If you or I had that money given to us and we didn't come through we would be in jail ASAP.
      disc1@...