Thursday, February 05, 2004
Light Reading - Networking the Telecom Industry:
"NEW YORK -- Teletruth has filed an updated Complaint with the Pennsylvania Public Utility Commission to investigate what they are calling 'Broadband Fraud' for a potential refund of $1135.00 per household, representing over $3.9 billion in excess profits, tax deductions, and other financial perks.

In 1994, Verizon (then Bell Atlantic) made a deal with the phone customers in the state. In exchange for deregulation that gave the phone company more profits as well as other financial perks, the company committed to creating a fiber-based network that could deliver two-way services at 45MPS to customers' home and offices in rural, urban and suburban areas. By 2004, 50% of the state is supposed to be wired.

'Our complaint centers around the basic fact --- It's 2004 and we now know that Verizon couldn't build the networks when they made their contractual arrangement with the citizens of PA in 1994. In fact, every current statement made by Verizon clearly shows that they are only now, in 2004, starting 'test' deployments. We estimate that every household has paid $1,135 for a network they will never receive -- and we believe customers are entitled to the money back and any new networks should be put up for bid' said Bruce Kushnick, Chairman, Teletruth.

Here’s an example of a fraudulent act from a normal, though identical business environment --- A state contracts a company to build a new highway system for $3.9 billion and sets timeframes, goals and specifications. The contractor doesn't deliver. Wouldn't the state sue the contractor for breach of contract? This is no different. And what would happen if the contractor, instead of using concrete, simply put in another sub-standard dirt road? Wouldn’t the state take the company to court for a "bait-and-switch"? "

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