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Home Broadband

How to Make 200$ Billion with (Virtual) FTTH

by Dana Blankenhorn
January 31, 2006
in Broadband
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Richard_stastnyRichard Stastny, whose blog is called VOIP and ENUM, for Voice Over IP and Nestar’s ENUM, which will bring IP and the phone network together. Today he blogged about Bruce’s book.

It’s cross-posted at his VOIP and ENUM Blog


Last Friday I pointed to plans in Vienna to put FTTH in all households.  This seems to be an excellent idea, at least one can "earn" a lot of money with FTTH. But as usual, Europe is lagging behind the US, which is leading the way in "how to make business".

David S. Isenberg is pointing on his blog to a book of his friend Bruce Kushnick, a "man on a mission". In The $200 Billion  Broadband Scandal, Bruce writes:

. . . in the early 1990’s . . . every Bell company . . . made  commitments to rewire America, state by state. Fiber optic wires would replace  the 100-year old copper wiring. The push caused techno-frenzy of major  proportions. By 2006, 86 million households should have had a service capable of  45 Mbps in both directions . . . In order to pay for these upgrades, in state  after state, the public service commissions and state legislatures acquiesced to  the Bells’ promises by removing the constraints on the Bells’ profits as well as  gave other financial perks . . . The phone companies collected over $200 billion  in higher phone rates and tax perks, about $2000 per  household.

Remark: in German we call this "über den Tisch ziehen", in Vienna "a Legerl".

The manipulations, deceptions and  broken promises are documented in detail in New Jersey, Texas, Pennsylvania,  California and Massachusetts. A synopsis of the book can be found here.

Buy  the book (ebook only) here, $20.00  cheap.

A special blog has been set-up on this issue: 200 Billion Broadband scandal

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Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn began his career as a financial journalist in 1978, began covering technology in 1982, and the Internet in 1985. He started one of the first Internet daily newsletters, the Interactive Age Daily, in 1994. He recently retired from InvestorPlace and lives in Atlanta, GA, preparing for his next great adventure. He's a graduate of Rice University (1977) and Northwestern's Medill School of Journalism (MSJ 1978). He's a native of Massapequa, NY.

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I'm Dana Blankenhorn. I have covered the Internet as a reporter since 1983. I've been a professional business reporter since 1978, and a writer all my life.

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