AT&T Wants $100 Million From California Taxpayers For Aging DSL (dslreports.com)
An anonymous reader quotes an article on DSLReports: AT&T is asking California taxpayers to give them $100 million so that it can provide several parts of the state with unreliable, slow and expensive DSL service. Under Assembly Bill 2130 (written by AT&T lobbyists), AT&T would receive $100 million from state taxpayers. In return, AT&T would only need to provide 10 Mbps download and 1 Mbps upload and would have little to no oversight over whether the $100 million is even being used for the DSL service.
Share buybacks?
they'll get it.
ELOI, ELOI, LAMA SABACHTHANI!?
Unreliable DSL is a plant problem, not a technology problem.
Really, AT&T? You want yet more money from us, with no oversight or guarantee that you're going to use it for the purpose for which we would give it to you?
You think we don't see how poorly that arrangement has worked for us in the past? Kindly fuck off.
APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
Please Piss up a live wire. Take your 20 year old DSL tech and cram it where the Sun cannot shine.... :-D
ATT = The Shittiest Company next to Comcast that Exists.
(Hi Comcast! YES, you are STILL the worst!)
This is what we get when we give corporations more power over our lives than we have.
Yay, corporate lobbying?
Only one months rent for the average San Francisco citizen.
But AT&T probably has given at least ONE or two of those millions to the people they're asking for the hundred million. It's really just an investment. The DSL has nothing to do with it.
I just downgraded to a 2 meg connection for $80 a month so I won't go over the cap with Comcast which was 30 megs. I have no choice in the matter and feel that is a good deal if AT&T won't do caps. 10 megs if fine. DSL is fine for streaming and more appropriate for geeks who do 100 gig caps easily each month. Cable operators are jerks in the matter where they sell LOOK 100 megs ... only 2 gig cap and $10 for each other gig in very small print.
I know the European readers are shocked and or laughing in disbelief at my comment but welcome to America.
http://saveie6.com/
I've been arguing with AT&T for nearly a year now about getting a faster connection to our house. We live in the "woods", but no more than 10 miles from places with enough people to provide them with pretty fast U-Verse speeds. All they can provide me is 768kbps, no amount of begging and pleading has ever even gotten a tech out to even *check* if they can give me more (our direct neighbor gets 6Mbps, still slow but nearly an order of magnitude higher than mine). They have though promised to send someone out a few times... just a technique to get you to shut up for a few weeks. We can't get cable, sat has way too high latency for what I need and cell service is shoddy at best. So, here I am paying AT&T 40 bucks a month for 768kps just to make sure I have a "reliable" connection; still goes out sometimes but way less than the cell connection.
Sigh.
timeo Danaos, et dona ferentis
In all fairness. speaking from overseas.. this sounds like a good deal. If all rural area gets 10/1Mbit net, or better, for only 100M.. then it's a pretty good deal.
And getting anyone connected should be priority for any state. Just only once you have and use net you realize it's about as essential as electricity. So even if tax payers help connecting more remote area's, i'd still see it as a good thing.
Relativating again.. If AT&T were to promise that kind of speeds on landlines nationwide at that price where i live (Netherlands; about same size and pop as california), it'd be laughed at as implausible.
Meanwhile, G3/4 speeds exceed DSL over here. Up to the point that you might consider dropping cable/dsl/landline alltogether. Which is likely anywhere 'soon' (<10 years) as wireless data scaled up much better as cupper based. My DSL now about same speed as my cable connection in 2000, while mobile connection dwarfs the dsl speeds.
just 2 cents..
A glitch a day keeps the bugs away.
Doesn't AT&T have shareholders? If so, shouldn't the shareholders bear the cost of upgrading infrastructure? After all, if profits hadn't been pulled out to pay dividends, then there would be funds available to rebuild aging infrastructure. Now, on the other hand, if AT&T shareholders are claiming that they need government assistance to rebuild the infrastructure, well, then maybe there shouldn't be any dividends paid out to shareholders until the assistance is repaid.
Sounds like the start of negotiations. Counter offer with a dollar.
The only way this will ever work is if all payment is withheld until the work is completed, and satisfactorily at that. Unless there's a risk of AT&T having to foot the bill, they'll just continue to rob us blind and shit directly into our mouths, as usual. They just paid almost $50 billion acquiring DirecTV, so I'm sure they still have a few hundred million in petty cash laying around to float this until they're finished.
Huh? Verizon isn't even in half of New England. Fairpoint is the provider for VT, NH, and ME, and they suck. I had 30mbs over DSL briefly but had to cut it in half because it kept losing sync. We're never getting fiber. Ever.
In the old POTS system, there was a standard where calls in cities and business telephone services overcharged heavily in order to subsidize the much more expensive rural phone lines, so that everybody in the country had a MUCH better chance of being able to afford a phone line if they wanted to.
In theory that is probably the argument behind this--but in practice it is probably just that AT&T paid them a few million in donations and want a hundred million steered toward AT&T.
We want to give it to you in true AT&T Style! Don't worry, you'll only feel like your getting screwed....
hehehe well, you are getting screwed. Deal with it. Don't worry, your legislators are coming out ok. We've paid them well.
Signed, AT&T
I take no responsibility for what I say. Even though I'm never wrong
Of course they did. Profit, not the quality and in this case the quantity of service, is the motive here. But, that was obvious.
I hope this caused some synapses to fire.
Didn't we give these companies billions in tax credits and incentives in the late 90's and early 2000's to upgrade and expand their infrastructure? Now they want more? Dont they make any money from the fees they charge customers to pay for this sort of stuff? Why do they need the taxpayer to cough up cash for them?
Also, I live three houses down from where Century Link in installing fiber in denver. Though I can see the equipment from my window and am less than a football field away, I'm not optimistic regarding my chances for getting FTTH, or even something better than cable service.
Isn't till this Friday.
Brought to you by Carl's Junior.
Without taxpayers money, ATT&T might not pull through : P
https://en.wikipedia.org/wiki/...
https://en.wikipedia.org/wiki/...
https://www.youtube.com/c/BrendaEM
The singular term "America", without a "North" or "South" annotation, unambiguously refers to the only country that has that word in its actual, official name. No one says "America" to refer either exclusively to North America, or the Americas as an aggregate. The proper notation for both is provided in the previous sentence.
I checked AT&T's corporate site to see how dire their cash situation is. If this company is asking the taxpayers to foot the bill for upgrading their network then they must be in serious trouble.
According to AT&T's press release dated October 22, 2015, AT&T had $39.1 billion in consolidated revenue, up 19% from the previous period (primarily due to the DirecTV purchase).
They also had $10.8 billion in cash from operations and $5 billion in free cash flow.
Apparently making a few billion dollars in a single quarter equates to not being able to spend $100 million to upgrade their own equipment. Who would have thought?
We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
This is Business as usual in the Corporate States of America.
The companies write the laws that say we have to pay them.
profit.
"The last thing I want to do is deal with a bunch of people who want something."
Major Major
Bah, we'll just raise taxes on the rich. What's another $100 million transferred from productive people to lobbyists and the coffers of a megacorp? /California
And realize who is really running your governments.
The people with money and connections.
Just like every other government in the world. Or did you think there was another option?
You miss the point entirely. The issue isn't what they can and can't afford. Why invest your own money when you can make someone else pay and you still reap the rewards (subscribers)? If there is money on the table, why would they leave it there? I don't blame ATT for this. Unless you are a holder of significant quantities of ATT stock, their job isn't to look out for your best interest. I blame the politicians for being corrupt and/or stupid enough to fall for it.
Isn't the issue here the extremely long ROI for rural improvements? Is AT&T obligated to build out these areas that won't be profit centers for them? I'm guessing the state throwing money at them changes that equation.
Is AT&T the only provider who can do it? Did they even bid this out? I might have to RTFA here soon. :)
http://www.ubnt.com/ + RadioMobile + Renogy solar panels and charge controller + 155Ah VMaxTanks SLA/AGM battery (or two)
I was in your situation and did a 5 mile PTP backhaul with PowerBridge M5 400mm dishes and 900MHz for PTMP. I was actually worse off with only satellite internet availability that had terrible latency (700-1500ms+) and strict bandwidth caps (38GB/month, throttled at 85%) and no bandwidth accounting reporting. I actually had to gang together two WildBlue connections to get that and was paying just over $200/month.
Fixed terrestrial wireless is amazing and it will work for you if you put in the effort. Expect to spend $1500-2000 to get the radios, solar panels, batteries, STP cables, battery boxes, masts, etc.. I enjoy 50Mbps now.
so why not run fiber OUT, too? GPON is going to be cheaper to work with in the long run, and customers could get gigabit speeds for that $100 million.
oh, that's right... almost no oversight on that deal.
if this is supposed to be a new economy, how come they still want my old fashioned money?
...so that it can provide several parts of the state with unreliable, slow and expensive DSL service.
Well, I guess that's the business they're in and what they're famous for.
It's not just the Republicans
And if you talk about taxes, a vast amount of our horribly complex tax code exists solely for the purpose of keeping "the rich" from paying taxes. Tax breaks are free money, and they invariably go to the rich.
Were you born that stupid, or did you practice to lower your mental abilities?
Why is Snark Required?
AT&T is a prime example of the real Taker Class (tm).
"Grab them by the pussy" -- President of the United States of America
It's the interstate highway of the modern age.
It should be built nationally to the degree the highway system was built, with fiber and then allow competition to use its services.
She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
This is just another example of Government for sale.
Having private industry write legislation would be a huge scandal in any other democracy I can think of, but it is almost unremarkable in the US.
This is interesting
I would argue that with the gerrymandering of electorates and the way money dictates outcomes in US politics, you really don't have a democracy anymore.
Our ATT DSL is 7MBPS...
The rich are people who pay only capital gains taxes at roughly 35% percent
Interesting definition, not one I've ever heard before. Typically "rich" is defined as an income percentile, i.e. someone who's earnings are greater than 90%, 95%, 99% of the population. Virtually all of them have earnings in addition to capital gains.
...which is far lower then normal humans pay. They are also those like Mitt Romney who have hundred of million of dollars in an IRA, which is impossible for normal humans as well.
For perspective, from Wikipedia, the top federal effective tax rate (income plus payroll) is around 30%. Paying 35% on capital gains is pretty steep in comparison. You might want to research your facts. Just sayin'.
(Yes, yes, this is Slashdot. Why would I expect accurate facts?)
Tax breaks are free money, and they invariably go to the rich.
*caugh*EITC*caugh*standard deduction*caugh*dependent exemption*caugh*mortgage interest deduction*caugh*
So you've listed the equipment supplier, the software to orient, the solar charge controller and panels and the battery. But who is the service provider? Because buying all that equipment buys you nothing if you can't get access at low latency.
The devil is in the details. Saying the capital gains tax in the United States is 0% to 15% is disingenuous. The details are more nuanced. Some useful definitions are at https://www.irs.gov/uac/Ten-Fa....
Short-term capital gains (investments held less than 1 year) are taxed at ordinary income tax rates, which are typically higher than the special treatment given to long-term capital gains but could be lower if the individual earning the gains is in a lower tax bracket because of their overall income being low.
For the folks with high incomes, long-term capital gains are 20%. For folks with somewhat smaller incomes, the long-term capital gains rate might be 15%, and for those with incomes that cause them to have a tax rate already below 15%, the capital gains rate could be as low as 0%. The fat cats with big incomes are not paying anything like the 0% tax on THEIR capital gains, but COULD be paying less than ordinary income tax rates if most of their income is from capital gains rather than ordinary income.
In the end, the Alternative Minimum Tax can and does swoop in and raise the overall tax rate paid to 26% to 28%, again depending on overall income and how well someone has done reducing their overall tax rate with deductions and other treatments. Anyone triggering AMT also has a number of deductions taken away from them, making the 26% to 28% tax due on a greater portion of their gross income as well. More on the AMT https://www.irs.gov/taxtopics/.... Oh, and, in addition to AMT, the Affordable Care Act also added an additional 3.8% net investment income tax onto both short-term and long-term capital gains for individuals making over $200,000/year, so they are likely to be paying a total of 23.8% on their long-term capital gains, not someplace between 0% and 15%.
The reason given for the lower tax rate on long-term capital gains is typically to encourage people and corporations to invest their money (put it to work) instead of just sitting on it, and to keep it invested (for at least a year) instead of being speculative and trading it in and out, disruptively.
If someone has $100s of millions of dollars in an IRA, they are going to be paying a lot of income tax down the road a bit. IRA distributions are taxed as ordinary income, no matter where the income in the IRA comes from. And you HAVE to take the IRA distributions sometime, starting at age 70 1/2 if you haven't started earlier, with the yearly "Required Minimum Distribution" (RMD) being based on the balance in your IRA divided by your life expectancy in years. Having over $10 million in an IRA starts looking pretty bad from an income tax standpoint. I suspect that people like Mitt Romney can afford tax advisors that get them a better deal than that.
Otherwise they would, you know, maybe try to make sure what they have is well spent...
Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
I won't argue that the US government is corruption free, but I need to point out a few facts.
The current maximum capital gains tax in the US is 20%. The vast majority of US citizens pay less than that for income tax after deductions.
According to the IRS, IRA contribution limits are $5,500 per year and $6,500 per year for those older than 50. Mitt Romney isn't more than 15,000 years old.
"Tax breaks are free money, and they invariably go to the rich." No it isn't and no they don't. Tax break are money that is not taken away, not free money. They do not invariably go to the rich. Look into the AMT, Child Care Tax Credit and Tax Credits for education just to start. I'm not saying that international corporations and fat cats get way more than their fair share of tax relief, but tax relief does not invariable go to the rich.
Did I just hear a whoosh and miss your sarcasm or did you really mean to say those things?
If you meant to say that the concentration of wealth is historically high and will lead to unrest and instability - I could not agree more. Smart guys like Warren Buffet and Bill Gates cant give it away fast enough. The root causes of violence in many parts of the world are lack of water and poverty - things that money can solve directly.
If you meant to say that unions and corporate special interest influence politicians I'd agree completely.
Greed is the root of all evil.
Let's give those funds to Google to roll out Fiber instead
35% is actually almost exactly the mean tax per income.
(That is to say, about 35% our collective incomes goes to paying our collective taxes, so a theoretical average person pays about 35% in income taxes).
-Forrest Cameranesi, Geek of all Trades
"I am Sam. Sam I am. I do not like trolls, flames, or spam."
Fuck you!
It's their damn network, they need to maintain it or get the fuck out of the state.
If they want money from the state (ESPECIALLY a sum like 100 million, they better have a fiber replacement strategy in hand when they come begging for the money.
Chas - The one, the only.
THANK GOD!!!
Verizon promised this to us, moons ago, and now we have a noncompetitive arrangement where handshakes or coin flips decide WHICH ISP gets the monopoly. http://www.speedmatters.org/bl... Now the rates in NJ lead the planet. Careful Ca,Careful!
Time for a new Political party in the US (or two!) One is off the rails Other cant pony up a leader.
Verizon doesnt offer FIOS in my area, but they -do- provide "High Speed Internet Access" with "up to 1.5Mbps!!!! Welcome to the 1980's!!! Seems like the govt is going to have to break the stranglehold on these perps.GIVE US SOME COMPETITION!!!
Time for a new Political party in the US (or two!) One is off the rails Other cant pony up a leader.
Government is preventing competition. In many parts of this area there's one cable provider and one telephone provider, they get exclusive rights for some number of years by the city or town. The two providers know they don't have to offer higher speeds if they both stay slow, so that's what they do. Municipal fiber might help, but it's probably only the cities that can do it, which leaves out rural. It's doubly annoying for me, I know there's a major fiber bundle just down the road, but will either provider tap into it? Hell no. I see fiber utility trucks every other day, just to rub it in.
Comcrap had a contract renewal recently with my city, the public input was horrible, and then the city granted them the contract. Un-f'ing-believable.
The Democrats have total control of CA politics. So much so that in the last election cycle many Democrat candidates simply refused to even debate any opponents and the Democrats who run the news outlets in the state did not even press them on this.,/p>
The Governor is a Democrat, the Lt Governor is a Democrat, the Attorney General and the Secretary of State are Democrats, the Senate is majority Democrat, the Assembly (the lower house) is majority Democrat. Both houses of the legislature have such large margins of Democrat majorities that Republicans have no say and no power - there's really no reason for them to show up except to monitor what the Democrats are doing, to the extent that the Democrats even let them see.
Anybody with any anger about anything political in California has only the Democrat party to blame - this is just the objective FACT.
Since taxes are on my mind right now... If we give AT&T this $100 million, do we get a deduction for this act of charity?
Are these requests not for underserved, rural communities? They need help, and the NRTC, try as they may, might not be able to serve the telecommunications needs of these communities.
Kriston
Capital gains are taxed at regular income rates IF they are from short-term investments - meaning less than a calendar year.
"So long and thanks for all the fish."
Yet 23.8% is still lower than the effective 30% tax rate paid by average US citizens: http://www.oecd.org/ctp/tax-po... - and this doesn't include the sales tax.
It's what the market will bear. In Romania, that $11 is more than many people can even begin to pay. In Romania, they're still driving wagons to town - pulled by tired old horses. The only people that can afford that, in Romania, are the people who go steal from neighboring countries and the handful of people who work in tech and government.
"So long and thanks for all the fish."
My home is in NW, Maine. I get fine service from Fairpoint. It's only 12 but I get 14 down. It's something stupid like $35/mo and always working. Supposedly, they're putting fiber in. That doesn't make me as happy as it should. They'll neglect the copper. I've seen copper on the ground, plowed into a snowbank, and with a tree on top of it - it still worked. Lemme see fiber do that.
"So long and thanks for all the fish."
And it sucks even harder if you need to run up a 200 foot tower on your property in order to get line-of-sight to the other end..
I assume by "IRA" we hopefully mean "Roth IRA" so you don't have to pay income tax on the distributions (you instead pay income tax before depositing money into it). Of course, because of the deposit limits, having >$10 million in an IRA means something very strange is going on.
We'll pay for it. No worries mate. We just paid for Telstra's so we're clearly willing to piss away billions of dollars on hopelessly broken, unmaintainable and un-upgradable copper networks!
"AT&T Wants $100 Million From California Taxpayers For Aging DSL "
Why would AT&T want to age the DSL, doesn't it age automatically with time?
There's more than one way to get money into an IRA. You can do a 401k rollover for instance. Contribution limits for 401ks are about 18000 for the employee, but 53000 for the employer. The limit is also per employer, not total... so if you own 10 companies and draw a salary from all 10 companies, I guess you can put away half a million per year in 401ks, then roll them over to IRAs.
Another trick is to use a self-directed IRA that lets you hold more investments than just publicly traded stocks and bonds. A self-directed IRA can buy and sell all kinds of stuff like real estate and art. How hard is it for a self-directed IRA to buy some art, then magically sell it the next day for 50x profit to the owner, the owner's company, a friend, etc? I don't know.
According to http://www.bankrate.com/financ... there are 314 taxpayers with IRA balances over $25 million, so definitely some tricks are happening.
...to go away. It would be worth a lot more than that to get them out of the picture.
They have been wrapping themselves up in the title Utility whenever money comes up, being a sponge for taxpayer's cash whenever infrastructure comes up. And then they post their quarterly reports, screaming nothing but profit.
It's time for the telecoms to assume fiscal responsibility for their dealings just like how banks are being forced into.
First rule of holes; When in one, stop digging.
This is interesting. Thanks for the info. I'm at the stage of my life where I'm trying to save as much as I can for retirement and limits can be a concern and or me probably a fact of life. I'm not sure why I would want to move money from a 401k to an IRA (they are both taxed upon withdrawal), but there must be a reason (that would likely not benefit me). I'd think that people who do this sort of thing would really draw the IRS's attention which at best is a nuisance.
It does explain why some super rich people want control of the government and taxation. Deferred tax savings strategies are a bet that your taxes will be lower when you retire. If you could control the tax rate, it would no longer be a gamble. Current socio-economic trends seem to imply higher taxes in the future so betting on lower taxes in the future seems risky, especially for those in higher income brackets.
The article you mention illustrates limitations in the Roth IRA and Roth 401k systems. I wonder if Mitt Romney is on that list...
Greed is the root of all evil.
There are innumerable cases of the candidate with the most money LOSING the election. Most recently, Jeb Bush's presidential candidacy crashed and burned in dramatic fashion, as he spent more campaign money than all the others in the race.
Money doesn't dictate outcomes, it just helps a little, and in a very close race, that little bit can be just enough.
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
Sure, but when you need lots of money to get a decent chance in the race, it doesn't matter as much that spending more than that isn't a guarantee. I rather doubt that Trump, Kasich, or Cruz got where they are without needing some sizable contributions.
"When you have eliminated the unacceptable, whatever is left, however improbable, must be the truthiness" - Holmes
However the 20% long term capital gains rate is the same for most people, it doesn't go down as you get richer. The relatively low tax rate of 20% is to encourage a buy-and-hold investment which helps the economy. Most really rich people get their money primarily from capital gains and dividends rather than from a salary, whereas the average person gets most income from salary, and this is the major reason that richer people pay less of an overall tax rate. With good accounting you can effectively reduce it further.
The regressive tax rates don't apply to capital gains so a scheme to tax the rich by raising the tax rates for those making more money doesn't affect the really wealthy very much, but it does hit a lot of people in the center such as those in the $100k-$200k range.
The AMT tax was originally meant for the very wealthy and was taxing some items that normally aren't taxed or that were taxed at lower rates. Such as exercising ISO stock options which used to be something only a company's executives might see but which have become more common in tech industries for average employees (and in the dot com bust/boom era it bankrupted some people). And some of the AMT tax rates kick in and apply at salary levels that are easily reachable in high cost of living areas by rather average people. Ie, married couple with both working and earning $100K salaries each plus some extra investment income earmarked for retirement (401K is never enough), they'll hit that $200K range threshold where lots of "tax the wealthy" items start kicking in.
When I put money into a standard IRA there was also a limit on how much you could put in, and the limit was a lot less than the 401K limit. If it was unlimited there wouldn't even be a need for a 401K.
The problem with schemes to tax the wealthy is that no one can really define what that means. At my 2015 income (fresh in my mind after having done taxes) I would be considered wealthy if I lived in the middle of Kansas. But I live in Silicon Valley in a small condo and not the best part of town. So when there's some tax item that only applies to those making over $200K a year, or $300K a year, those limits are very easy to reach here with a two income family that would be difficult to describe as "wealthy" (filing separately or jointly neither is as good for your taxes as being single). But if they move somewhere else then the jobs dry up or they have a nightmare commute, only see the family on weekends, etc.
FYI, in the US, the 95% is making $95k/year, hardly "rich" and very likely to be paying no capital gains, as that is generally a salaried employee.
APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
Money doesn't dictate outcomes, it just helps a little...
Like 91% of the time
Correlation is not causation. The article ended with numerous explanations for the effect at the bottom, which don't equate to voters being swayed by money. It's quite likely that the effect is reversed, and donors enthusiastically give lots of money to heavy favorites. And a 9% of big-spending incumbents being ejected is actually impressive.
Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant