What
Do You Mean America had National and State
Fiber Optic Plans in 1993? We Were Punked.
Did you know
that the first wireless bait-and-switch
for fiber to the home was 1995?
“Institutional
memory” requires that someone — some
government agency, or some academic center,
or some political party or… anyone… actually
keeps the knowledge of the past intact so
that we don’t keep making the same mistakes
over and over.
But it
is more than just that. What happens if the
corporations are able to actually rewrite
the history of events, editing or erasing
basic facts to the point where the pundits,
politicians, the government, reporters, and
especially the ‘common wisdom’ that is
always quoted — have all been punked?
In a
previous
post we examined how there is a plan
to give out hundreds of billions of dollars,
and a chunk will go to a very small group of
holding companies — AT&T, Verizon and
CenturyLink (now Lumen Technologies), that
have left most of America’s state-based
telecommunications public utilities copper
infrastructure to deteriorate.
And
here we present excerpts from the
FCC’s
exceptionally obscure Video Competition
reports, that were first published
beginning in 1993 . Each report describes
what commitments were made by the holding
companies now known as AT&T, Verizon and
CenturyLink for their proposed fiber optic
networks then known as ‘Video Dialtone’
(VDT), and what happened to these
commitments. There was also an attempted
bait-and-switch with wireless infrastructure
and service, claiming it could replace
landline fiber optics. Of course, it can’t.
Ironically, almost all fixed or mobile
wireless service requires fiber optic wires
to connect cell towers and switching centers
to work. There is no wireless without
wireline! The much-heralded 5G is a network
based on numerous small antennas connected
by a host of fiber optic wires.
Don’t
Take Our Word for It.
The “FCC REPORT”, identifies
the excerpts from these reports, which were
published almost 30 years ago; they supply
the number of lines for cities and states.
And yet, what is now AT&T, Verizon and
CenturyLink — never showed up and virtually
none of it was built.
AT&T California, (then known as
PacBell) — Spent $16 billion starting in
1993 in Los Angeles, San Diego, San
Francisco, and Orange County — 1 million
homes by 1997?
FCC REPORT: “PacBell’s
August 1995 authorization for four Video
Dialtone (VDT) systems in California, which
will pass 490,000 homes in San Francisco;
360,000 homes in Los Angeles; 259,000 homes
in San Diego; and 210,000 homes in Orange
County, California. PacBell’s applications,
originally filed in December 1993, proposed
an advanced, wire-based video and telephone
network that would be constructed sometime
in 1996 at an expense of approximately $16
billion. It appears that PacBell currently
plans to pass only 500,000 homes with this
advanced network in 1996, increasing to one
million homes in 1997.”
And
here is a quote of a wireless
bait-and-switch that was attempted by
PacBell.
FCC REPORT: “These reports
suggest, however, that PacBell is
accelerating construction of the VDT network
in the San Francisco Bay Area, scaling back
its VDT deployment plans in its other
authorized areas, and deploying wireless facilities in
those areas in the near term while
building out the VDT systems.”
Was the
$16 billion ever spent? Were there 1 million
homes connected to fiber optic wires in 1997
in California, especially ½ million in San
Francisco? Of course not.
You’ve heard of “Video Dialtone”
fiber optic services, right? Of course
not.
Starting
in 1994, (see the chart at the end of this
post), essentially, all of the companies
filed proposals to use the telephone network
to offer video and cable services.
The
opening chart shows that how the companies
were to install almost 6 million fiber optic
lines, which were ditched after only a year
or two. The chart is only a partial list of
the almost 10 million households listed in
the companies’ applications; we include a
more complete collection at the end of this
article. These did not include or mention
all of the additional fiber deployments they
announced at the time.
The
significance of video dialtone, then, isn’t
just that the holding companies now known as
AT&T, Verizon et al. planned to roll out
fiber optic services 3 decades ago — and
didn’t do it. What is still a mystery to
most is that these proposals were a quid pro
quo to legislative and regulatory
concessions the companies sought, including,
deregulation, rate increases, and corporate
tax breaks. The states allowed them to reap
billions in excess profits in order to pay
for fiber optic networks as an upgrade of
the existing copper-based state
telecommunications public utility. The
governmental authorities never held the
companies accountable for their failure to
deliver on their promises. The states stood
by while the companies kept the money or
diverted it to their wireless business.
This
institutional amnesia has allowed history to
keep repeating itself multiple times in
every state over the last 30 years.
Critically Important
- Wireless has been a bait and
switch for high-speed fiber lines for
three decades. Early on the
companies began laying the groundwork for
the notion that wireless is an adequate
substitute for landline fiber base
services.
- This is the beginning of the
Digital Divide. This failure to
deliver on those commitments is now called
the Digital Divide. Wireless networks
deliver coverage that is spotty and are in
many places non-existent. Internet users
also have to pay more for wireless
broadband. Wireline networks were built
out in urban and suburban towns and
cities, but their coverage was based on
redlining determined by income.
- No More Government Subsidies.
These companies should not get a single
dollar of future county, state or federal
government subsidies. They do not want to
build fiber to the home or office. They
are working hard to sell government and
the public on an all- wireless future.
Let’s
Keep Going
AT&T: Ameritech: Ohio, Indiana,
Michigan, Illinois and Wisconsin.
FCC REPORT: “The remaining
five applications for permanent commercial
VDT authority were granted to Ameritech in
January 1995 for five systems that proposed
to pass 232,000 homes in Detroit, Michigan;
501,000 homes in Chicago, Illinois; 115,000
homes in Indianapolis, Indiana; 262,000 in
homes in Cleveland and Columbus, Ohio; and
146,000 homes in Milwaukee, Wisconsin.”
FACT: After 30 years,
AT&T, the holding company, and the
combined Bell state telecom utilities it
reconsolidated through acquisitions and
mergers, now controls service areas in 21
states, but has only 6 million fiber optic
lines in service.
The New Tech Shiny Bauble:
AT&T wants to receive billions in the
current down-pouring of state and federal
government subsidies. That’s why AT&T
has just claimed it will now roll out fiber
optic networks so that “75% of the footprint
will eventually be built with fiber and 5G
by 2025.” This is bad math. Based on the
current ‘increased’ buildout rate, it will
take about 10–15 years. (That’s why the
quote includes ‘5G’ coverage.) History
predicts that AT&T will break this
promise and get away with it. Once again it
trumpets bogus claims that it will deliver a
fiber optic future, even though it didn’t
show up in the past. From San Francisco to
the ½ million lines of fiber it claimed it
would be deploying in Chicago (and filed
with the FCC to build) AT&T contrives
its hollow press releases and marketing
campaigns only for its own financial
benefit.
Verizon’s
Fiber Optic Failures
GTE,
(which had copper-based state
telecommunications public utilities spread
all over America) merged with Bell Atlantic
(who had merged with NYNEX) to become
Verizon, and they did virtually do the same
thing as AT&T — promise anything then
deliver virtually nothing.
Verizon GTE’s California, Virginia,
Florida and Texas, Hawaii
FCC REPORT: “GTE’s May 1995
authorization for four VDT systems that will
pass 476,000 homes in Pinellas and Pasco,
Florida; 334,000 in Honolulu, Hawaii;
122,000 in Ventura, California; and 109,000
in Manassas, Virginia. Reportedly, GTE is
aggressively moving ahead with its VDT
plans. By the end of 1996, GTE reportedly
plans to pass a total of 500,000 homes in
three markets: Ventura, California; Pasco
and Pinellas counties, Florida; and
Honolulu, Hawaii. By 1997, GTE reportedly
plans to enter the Manassas, Virginia
market, increasing its total homes passed to
900,000 homes in all four markets. GTE
states that its goal is to pass seven
million homes with VDT in 66 top markets
within the next ten years.”
NOTE:
Former US Attorney General William Barr was
GTE’s lead attorney starting in 1994 through
the merger and creation of Verizon.
Verizon: NYNEX Massachusetts &
Rhode Island also had permanent fiber
deployments that never showed.
FCC REPORT: “NYNEX’s March
1995 authorization for two VDT systems, one
in Rhode Island that will pass 63,000 homes
and one in eastern Massachusetts that will
pass 334,000 homes. NYNEX’s applications,
filed in July of 1994, proposed completion
of construction in 2010. According to some
trade press accounts, NYNEX is proceeding on
target with a “cautiously aggressive”
strategy with its VDT systems in eastern
Massachusetts and Rhode Island. Earlier
reports suggested, however, that while still
pursuing VDT entry, NYNEX had scaled back
its deployment plans and may utilize
wireless cable in the near term to reach
subscribers while constructing its VDT
systems. “
None of
this was done during this time-frame and you
will notice that NYNEX started claiming it
would use fixed wireless instead.
Verizon DC, and Surrounding
Maryland, Virginia, and Delaware
FCC REPORT: “On May 24,
1995, Bell Atlantic withdrew two
applications for permanent commercial VDT
systems that proposed to pass 1.2 million
homes in the D.C. metro and 2 million homes
in the mid-Atlantic area. Bell Atlantic
announced that it was considering new
technologies and would submit amended
applications at a later date, after further
evaluating the technologies. Press reports
suggest that in the D.C. and mid-Atlantic
regions, Bell Atlantic plans to use wireless
technology pending further development of
switched digital video (“SDV”) architecture.
Notwithstanding its withdrawal of two
significant VDT proposals, Bell Atlantic is
going forward with VDT in other areas,
including the construction of a permanent
commercial VDT operation in Dover.”
Verizon, Pennsylvania, New York and
Boston Massachusetts were all punked.
FCC REPORT: “In 1996, Bell
Atlantic announced plans to upgrade its
infrastructure to a switched broadband
network in Philadelphia and southeastern
Pennsylvania, with eventual service to over
12 million homes and small businesses across
the mid-Atlantic region over the next three
years. NYNEX also recently announced plans
for large-scale deployment of switched fiber
networks in the Boston and New York areas,
with plans to be able eventually to provide
video to up to five million subscribers.”
VERIZON TOTAL WAS 24 MILLION
HOUSEHOLDS — BY
2010.
- Verizon
(Bell Atlantic) was to have 12 million
homes.
- NYNEX
was to have 5 million homes in NYC and
Boston.
- GTE
claimed that it would have 7 million
homes.
- Rhode
Island, Verizon was to have 63000 VDT
lines.
Thus,
by 1996, the Bell companies that would make
up Verizon had claimed that twenty-four
million lines of fiber would be installed
throughout all of its territories, and yet
barely more than one-half should have been
installed by 2000.
Bell
Atlantic never built these networks nor did
NYNEX. GTE, which was independent in this
1995–1996 timeframe, had started buildouts
but sold off most of them off (or closed
them) before the merger. In fact, these VDT
buildout announcements were tied to pushing
through the merger of these two Baby Bell
Holding Companies — even though they had, at
one time. claimed they would compete as Bell
Atlantic, New Jersey, which touches NYNEX
NY.
CenturyLink
(Lumen)
CenturyLink had Merged with what was
Originally US West
US West Colorado, Minnesota, Oregon,
Utah, Idaho, and Nebraska, were all
punked.
FCC REPORT: “On May 31,
1995, U S West requested suspension of
further Commission consideration of the five
applications it filed in January and March
1994, which proposed permanent commercial
VDT service to 1.1 million homes, including
90,000 homes in Boise, Idaho; 357,000 homes
in Denver, Colorado; 357,000 homes in
Minneapolis, Minnesota; 162,000 homes in
Portland, Oregon; and 160,000 homes in Salt
Lake City, Utah. U S West stated that it
wanted time to review results of its Omaha,
Nebraska market trial and to study new
technologies.”
Was this a conspiracy to commit
fraud?
How
could all of these Holding Companies,
controlling multiple states and cities, as
well as the state telecommunications public
utilities, not show up and deliver their
promised fiber optic services?
What is
about to go down in America is — AT&T,
Verizon and CenturyLink, with the cable
companies, want all of the government
subsidies for themselves; they want to block
all competition and once they get the
funding, they’ll do exactly what they did in
the past — Fiber-to-the-Press Release, (as
it is referred to by
telecom
expert Karl Bode.) The announcements
they are making have no serious enforcement
provisions and it is all just to get the
federal and state government subsidies. We
are being punked yet again…
CRASH AND BURN: SBC Took a Hatchet
to the Plans once it Merged with Pacific
Bell
The 1997 Video Competition Report
states:
FCC REPORT: “In contrast,
Pacific Bell Video Services, which, before
its merger with SBC in 1997, had obtained
cable franchises for San Jose, and the
surrounding Santa Clara County in
California, is now in the process of
terminating these franchises. SBC is
reportedly looking for a buyer for the
incomplete system that Pacific Bell Video
Services was constructing to serve these
franchises. SBC performed an 18-month cable
trial in Richardson, Texas, a suburb of
Dallas, which ended on July 7, 1997. Sprint
applied for cable franchises in Wake Forest
and Wake County, North Carolina last year,
where it had been operating VDT trials but
later notified the Commission that it would
not seek a cable franchise in this area and
that it was terminating video service in
Wake County.”
Tying the state-based broadband
plans to these federal video dialtone
plans has never been done by the FCC or
almost anyone else.
In
1993, Pacific Bell, California, announced a
plan to have 5.5 million households wired
with fiber optics by 2000 and it would spend
$16 billion dollars. Alongside that, PacBell
was selling the same plan to the FCC as part
of the federal video dialtone, but these
plans were sometimes mentioned, sometimes
not, in their dealing with the media and the
public.
We’ve
written
a great deal about AT&T California
as these federal plans were never referenced
by the states commissions and none of the
cities understood the ties between these
different fiber optic plans; each designed
to get state rate deregulation or federal
actions, such as the creation of the Telecom
Act of 1996.
The Plan Was for Fiber Optic
Services, in the Majority of the
Territories by 2010.
New
England Telephone filed for upgrades of
Rhode Island and Massachusetts
infrastructure, and it included in its
FCC FILING: “NYNEX proposes
to deploy hybrid fiber optic and coaxial
broadband networks that will provide
advanced voice, data, and video services,
including interactive video entertainment,
multimedia education, and health care
services. NYNEX plans to deploy this
type of network to the majority
of its customers by the year 2010.”
Thus,
to repeat, the promise of Video Dialtone was
fiber, for all services, and that the
majority of the network would we completed
by 2010, and this message was in all NYNEX
documents, filings, etc — but the VDT part
was usually never detailed.
The
Wireless Bait and Switch Started in 1995.
FCC REPORT: “Status of LEC
Investment. In the 1995 Report, the
Commission reported that Bell Atlantic,
NYNEX and PacBell had all invested in
wireless cable operations. In 1996, one
new LEC, BellSouth, entered the wireless
cable industry.”
FCC REPORT: “However, late
in 1996, Bell Atlantic and NYNEX announced a
suspension of their investment in wireless.
Also late in 1996, a proposed acquisition by
PacTel of a wireless system in northern
California collapsed, although PacTel states it is continuing with
plans for a southern California digital
wireless system.”
Here are a few more quotes:
FCC REPORT: “These reports
suggest, however, that PacBell is
accelerating construction of the VDT network
in the San Francisco Bay Area, scaling back
its VDT deployment plans in its other
authorized areas, and deploying wireless facilities in
those areas in the near term while
building out the VDT systems.”
FCC REPORT: “Earlier
reports suggested, however, that while still
pursuing VDT entry, NYNEX had scaled back its deployment
plans and may utilize wireless cable
in the near term to reach subscribers while
constructing its VDT systems.”
FCC REPORT: “In the 1995
Report, the Commission noted that Bell
Atlantic, NYNEX and PacBell had made
significant investments in wireless cable.
As noted above, BellSouth entered this
domain this year with its acquisitions of
licenses for a wireless cable system in New
Orleans.”
FCC REPORT: “CAl’s
wireless systems located in Bell Atlantic’s
local telephone service area include
Philadelphia, Washington, D.C., Pittsburgh,
Baltimore and Norfolk-Virginia Beach. Bell
Atlantic would be able to pass four million
households in those markets through CAl’s
wireless systems. CAl’s wireless systems
located in NYNEX’s local telephone service
area include New York, Boston, Long Island,
Buffalo, Providence, Albany and Syracuse. In
addition, CAl has wireless systems in
Cleveland, Hartford, Rochester,
Stockton/Modesto and Bakersfield.”
FCC REPORT: ‘However, as
also noted above, Bell Atlantic and NYNEX
have suspended their wireless cable ventures
with CAI. Currently, the only operational
Multipoint Multichannel Distribution Service
(MMDS) that is directly owned by a LEC is
the 42,000 subscriber system in Riverside,
California owned by PacBell.”
The CAI
Wireless Broadband service was yet another
telco “bait and switch” that never did work
well due to the walls of buildings, big
trees, and rain. All of these block a clear
line of sight for clean signal reception.
FCC REPORT: “Various
factors, including technological limitations
(e.g., line-of-sight and channel capacity),
have been blamed for the relatively low
penetration of wireless cable systems. Due
to their relatively small size, wireless
cable systems potentially face higher
programming costs per-subscriber than many
of their larger, wired cable system
competitors.”
Thirty
years later and Verizon et al. are moving
away from using the 5G Mmwave spectrum
because, while it can deliver higher speeds
it has a short range; its radio signal does
not penetrate building walls and it also
requires a line of sight with nothing in
between to work at high speeds.
Subplots
There
are a series of lessons that must be learned
from our history — and giving the companies
that created the Digital Divide — on
purpose — government subsidies and new
financial perks, should be seen as a really
bad idea.
Working
as a cartel, they were able to kill off an
entire decade of progress on having a fiber
optic future and also left their state
utilities to deteriorate. Moreover, whatever
commitments they would claim, it would only
be done in response to some favor they
wanted — extra profits from deregulation or
entering new lines of business.
The reason that the announced fiber
deployments were made, starting in 1991, was
to:
- Get
rate deregulation in their states to
increase subscriber revenue but then
AT&T et al. didn’t deliver.
- Push
through the Telecom Act of 1996 to enter
other lines of business, especially long
distance,
- Push
through the mergers of Bell Atlantic-NYNEX
and GTE to form Verizon, and SBC-Pacific
Telesis, SNET, and Ameritech at this
juncture, from 1997–1999.
- They
were able to use this round of fiber optic
promises — or a ‘substitute’ for the
fiber — i.e., make claims that wireless
could replace their fiber plans — and then
close everything once the deal or merger
went through.
They
left America at the end of 2000 with no
fiber optic deployments, even though 30–50
million lines should have been installed
counting the state commitments. The video
dialtone promises were made to get much
higher profits to be spent on international
telecom investments and for national
entertainment investments as well as to get
larger to have more political clout — This
was the ultimate outcome.
But
really, the outcome was — they could rewrite
history so none of what we just wrote would
be known. That’s true market monopoly power,
and we will repeat history if steps are not
taken to block these companies from getting
more government subsidies.
Finally,
this should be a warning sign — do not
believe the hype that the companies will
deploy fiber optics this time if they are
only given more government subsidies. What
we have is just another round of fiber to
the press release.
Here’s
most of the video dialtone applications and
their outcomes.
ATT,
VERIZON, CENTURYLINK FIBER VIDEO DIALTONE
FCC APPLICATIONS
