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Verizon Permitted to Default on PA Broadband Deal

Posted by ryuzaki0 on from the why-johnny-can't-speed dept.

Rich writes "This is simply amazing to me. Broadband Reports has the latest chapter concerning Verizon's con of Pennsylvania unearthed by telco-critic Bruce Kushnick last February. A 1994 agreement between Verizon and the state of Pennsylvania paid dividends to Verizon in excess of $2.1 Billion in tax cuts and other deregulatory goodies over the years. Verizon's part of that deal was to deploy 45Mbps symmetrical fiber service fiber to PA homes and residents by 2015 (something they knew would never happen). This week the well-lobbied state has apparently voted to totally ignore the 1995 agreement, after Verizon's already walked away with the cash, leaving PA residents (who are already pretty low on the broadband food chain according to a new report) high and dry."

4 of 278 comments (clear)

  1. Follow the money... by heironymouscoward · · Score: 4, Insightful

    The unsurprising truth about most such affairs is that governments rarely spend money because it benefits their constituents, they generally spend it because it benefits their friends, and themselves. How much of Verizon's money went straight back to the people making the decision? 10%? 15%? 20%?

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  2. It's gonna be a bad year... by LinuxGeek · · Score: 4, Insightful

    to be a Pennsylvanian state legislator when the tax payers find out about all this. Too bad that the real bastards ( at Verizon) won't pay as high a price. Plus most of the legislators that made the original deal in 1994 probably aren't in office anymore. It dosen't sound like they put many checks or penalties into the agreement.

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  3. Unanswered, what are the other parts of the deal by MyNameIsFred · · Score: 4, Insightful
    As part of that agreement, Bell Atlantic agreed to have 20% of the state broadband wired by 1998, and 50% by 2004
    I would not be surprised to find out there is hanky-panky going on here. However, before I condemn Verizon, I have some questions -- primarily what were the other parts of the agreement alluded to in the article? Were there other requirements besides providing broadband support? Were those other requirements met? Did Verizon receive all the tax breaks negotiated, or just a portion because they didn't do everything?

    I know this is slashdot, but before I condemn "the capitalist pigs and their puppets in the government," I would like to know the whole story.

  4. People need to get a clue by release7 · · Score: 5, Insightful
    Gotta love the "what cares" attitude of some of the comments here. Don't the posters understand they are part of problem? That the powerful and well-heeled will continue to rip us off as long as they can get away with it?

    Poor people incurred frothing, hateful wrath of the middle class for getting money for food and rent. Yet these large, powerful corporations walk away with bagfuls of money every day and it's "ho-hum, what else is new?" How bad is it going to have to get before you get angry enough to do something?

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