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The $200 Billion Rip-Off: Our broadband future

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posted on Apr, 30 2009 @ 02:16 AM
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Americans were deceived and defrauded by many of their telephone companies to the tune of $200 billion -- money that was supposed to have gone to pay for a broadband future we don't -- and never will -- have.


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This is a very interesting article about how the telephone companies swindled tax payers out of billions by promising upgrades to the broadband system that were never delivered. If you've ever wondered why our broadband system is so slow compared to other countries, this article will answer all your questions.


TA




posted on Apr, 30 2009 @ 02:21 AM
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Over the decade from 1994-2004 the major telephone companies profited from higher phone rates paid by all of us, accelerated depreciation on their networks, and direct tax credits an average of $2,000 per subscriber for which the companies delivered precisely nothing in terms of service to customers. That's $200 billion with nothing to be shown for it.


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And people thought Wall Street types were the only ones out there pulling scams of this caliber. At least Madoff only scammed a few people, the telephone companies are scamming us all.


TA



posted on Apr, 30 2009 @ 02:50 AM
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Ugh, and these dirtbags have the nerve to impose bandwidth limits on our services. This is absurd and disgusting, but sadly with the media sensationalism of swine flu, it's getting little coverage. How horribly convenient...

Ugh... makes me sick. Great post S&F.



posted on Apr, 30 2009 @ 03:22 AM
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reply to post by JipStix
 


Yep, they take our money for services, they take our tax money for upgrades that are never delivered, and then they want to put caps on the amount of bandwidth we can use. It's one of the biggest rip-offs i've ever witnessed.

Of course, the bandwidth caps were agreed to under pressure from the MPAA/RIAA. But still, after this, they have no right to tell us how much we can consume of the service they actually do provide because it's their fault there's so much congestion (which is the excuse used to justify the caps, albeit a flimsy one). Thanks for the S&F, star for you.

TA



posted on Apr, 30 2009 @ 04:24 PM
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This could all be credited to technology misadventure and forgotten if it weren't for the money. The telcos played games with state utility commissions, cutting deals with the states to deploy new technologies in exchange for "incentives," which were new charges and new ways of charging customers. One typical ploy was to offer to freeze basic telephone rates for a period of years (typically five) then deploy a bunch of new services, which would be sold on an a la carte basis. The problem with this is that it applied analog economics to what were now digital services. The cost of providing digital services is always going DOWN, not up, so the telcos that might have been forced to cut rates instead offered to freeze them, locking in an effective multiyear rate increase.


This is why i believe in Lassez-Faire Capitalism: If this weren't a semi-regulated industry, the company able to provide the best service at the best price would succeed and all the others would fail, and there would be no bureaucracies involved. Cut the bureaucracies out and there's no price setting. Capitalism needs to be allowed to regulate itself, otherwise we get crap like this.


TA



posted on Apr, 30 2009 @ 04:30 PM
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reply to post by JipStix
 


The article is dated August 10, 2007, so it has already been ignored. I'll help flag it so it doesn't get ignored again.



posted on Apr, 30 2009 @ 04:32 PM
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Thank you, Curious_Agnostic. No matter what opinion you have on how the situation should have been handled, this is an important read. Star for you, friend.


TA



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