Broadband Scandal 6. Table of Contents

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1 Broadband Scandal 6 Table of Contents Roadmap Who Are the Bell Companies? Preface: How I came to write this book. Introduction and Summary What s in Volume II Part One The Diss-Information Superhighway Chapter 1 Promises, Promises: The Future Is Always. Chapter 2 Why Do It? Benefits of the Superhighway Justifying the Hype Chapter 3 Hollywood Calling TELE-TV and Americast Chapter 4 Hollywood Calling, Part 2 Part Two What Was Promised? Interlude: What Was Promised? Chapter 5 And the Promises? The Annual Reports Tell No Lies. Chapter 6 And the Promises? Video Dialtone Commitments Chapter 7 And the Promises? Fiber Optic Upgrades-to-the-Home Were Promised. Chapter 8 Speed Matters: The Faster the Service, the More Stuff You Get, Faster. Chapter 9 And the Promises? Channels Galore, Interactive Programming Chapter 10 And the Promises? Open to All Competition Chapter 11 And the Promises? NOT DSL SPEED and Coverage Are the Issues. Part Three Splat Interlude: The Paths to the Fiber Optic Scandals. Chapter 12 The Lay of the Land: The Interplay of Federal and State Fiber-Optic-Speak. Chapter 13 Splat The Retreat: What Happened with the Info Bahn? Chapter 14 Technology Doesn't Work and It Is Too Expensive: Original Cost Models

2 Broadband Scandal 7 Part Four The Bell Mergers Killed Broadband and Competition. Interlude: How the Bell Mergers Killed Fiber Optic Broadband. Chapter 15 The SBC-Pacific Telesis-SNET-Ameritech Mergers Were the Death of the State Fiber Optic Deployments. Chapter 16 Failure to Compete, Failure of the FCC to Enforce Merger Conditions Chapter 17 The Verizon-Bell Atlantic-NYNEX-GTE Mergers Were the Death of State Fiber Optic Deployments: The Con Job. Chapter 18 Analysis of Verizon's Merger Conditions and "Truth in Speech" Statements Part Five Follow the Money Chapter 19 Follow the Money: The Regulations. Chapter 20 Alternative Regulations: The I-Way Sleight of Hand Chapter 21 Fiber Optic Scandal Alternative Regulation, Round 2 Chapter 22 Show Me the Money. Additions to the Book: Part Six Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 The States Get Hosed. Case Study: Opportunity New Jersey A Broadband Failure How Pac Bell and SBC Stole California s Digital Future. Texas Infrastructure Act: A Vanishing Act? Massachusetts s 330,000 Fiber Optic Lines that Never Showed Up. Liberty, Bell, Stolen. The Pennsylvania Fiber Optic Scam and the Muni Future. Special 20 th Anniversary Data and Analysis Summary Report CODA 1: CODA 2: CODA 3: ISDN The Advanced Network Posterchild: "It Still Does Nothing". Verizon s FIOS FIASCO and SBC s Dim-Lightspeed: The Rise of the Crippled Networks: Enemies of Openness. The World is Laughing at Us. Fake Consumer Groups, Biased Research, Lots of Lobbyists, Paid-Off Politicians: Behind the Broadband Curtain.

3 Broadband Scandal 8 Exhibit 1 The Original Regional Bells by State Exhibit 2 The Current and Past Hype In Verizon s Own Words Exhibit 3 The Current and Past Hype In SBC s Own Words Exhibit 4 The Current and Past Hype In BellSouth s Own Words Exhibit 5 Deloitte & Touche Benefits of Information Highway, Indiana Bell, 1993 Exhibit 6 Opportunity Indiana's Impact on Health Care Exhibit 7 The RBOC's TELE-TV and Americast Partners Exhibit 8 Bell Cable and Entertainment Investments Exhibit 9 Announced RBOC Upgraded Residential Subscribers, Exhibit 10 GTE and SNET Projected Fiber-Deployments, Exhibit 11 Total Bell Household Deployments 2000, 2005 (with GTE, SNET) Exhibit 12 Permanent Video Dialtone Applications, Company and Location, 1994 Exhibit 13 Requested Video Dialtone Applications by the Phone Companies Exhibit 14 Speed of Service Comparisons, 2005 Exhibit 15 Number of Channels on Bell Video Dialtone Services Exhibit 16 New Jersey Bell Advanced Network & Broadband Deployment Schedule, 1993 Exhibit 17 ONJ s Broadband Digital Deployment vs without ONJ Exhibit 18 Rollout of Telephone Companies and Interactive TV, 9/96 Exhibit 19 Local Exchange Carrier Video Dialtone Pullouts, Exhibit 20 The Ongoing Bell Rollouts as of December, 1995 Exhibit 21 Verizon and SBC Fiber Optic Broadband Spending and Households Exhibit 22 The SBC Hatchet of Fiber Optic Deployments Exhibit 23 Pacific Bell Video Dialtone Deployments, 1995 Exhibit 24 SNET s Filed Connecticut Fiber Optic Video Dialtone Deployments, 1995 Exhibit 25 Ameritech Video Dialtone Requested Permanent Authorizations Exhibit 26 Ameritech Investment Commitments, Exhibit 27 SBC Out-of Region Cities, National-Local Strategy Exhibit 28 SBC Long Distance Applications and Status as of 2001 Exhibit 29 The Verizon Con Job of Fiber Optic Deployments, by 2000 Exhibit 30 The Original Bell Atlantic/NYNEX States Exhibit 31 Verizon US Territories, 2004

4 Broadband Scandal 9 Exhibit 32 Video Dialtone Filings by Verizon, Exhibit 33 Video Dialtone Filings by Verizon, Exhibit 34 New Jersey Bell Advanced Network & Broadband Deployment Schedule, 1993 Exhibit 35 NYNEX Video Dialtone Announcements, Exhibit 36 Nationwide Telephone Charge Increases , Exhibit 37 Allowable Advertising Expenses by PUCs, 1995 Exhibit 38 States' Rate of Return Policies on Contributions and Dues Exhibit 39 Southwestern Bell's TeleFuture 2000, 1989 Exhibit 40 Southwestern Bell's TeleKansas, 1989 Exhibit 41 Southwestern Bell's TeleFuture 2000 Return on Equity Splits, 1989 Exhibit 42 Alternative Regulation in Illinois, Ameritech, 1993 Exhibit 43 Alternative Regulation in Michigan, Ameritech, 1993 Exhibit 44 Revenue, Expense & Profit Margin, Selected BellSouth Calling Features, 1999 Exhibit 45 Profit Margins for Directory Publishing in 1999 Exhibit 46 New Jersey Bell Advanced Network & Broadband Deployment Schedule, 1993 Exhibit 47 Bell Atlantic New Jersey, Write-Off Bonanza, 1994 Exhibit 48 Verizon New Jersey Employees, Exhibit 49 New Construction by New Jersey Bell, Exhibit 50 New Jersey Bell Return on Equity, Exhibit 51 The Verizon Opportunity New Jersey Commitments vs FIOS Exhibit 52 Opportunity New Jersey Broadband Digital Deployment vs Without ONJ Exhibit 53 Pac Bell s Consumer Broadband Hybrid Fiber/Coaxial Direction Exhibit 54 Pacific Telesis Consumer Broadband Deployment Schedule for California Exhibit 55 Video Dialtone Applications by Pacific Telesis for California, Filed 1993 Exhibit 56 Pacific Telesis Construction & Capital Expenditures, Exhibit 57 Pacific Telesis Return on Equity, Staff, Exhibit 58 San Diego Tribunes Year by Year: A Plan that Failed Exhibit 59 Discretionary Services, Southwestern Bell, Texas

5 Broadband Scandal 10 Exhibit 60 Bell Atlantic's Return on Equity and Profit Margins Exhibit 61 Bell Atlantic-New England Tel Dividends, Depreciation, and Expenses Exhibit 62 Bell Atlantic-New England Telephone Revenues, Expenses, and Income Exhibit 63 Regional Bell Residential ISDN Offerings, July, 1995 Exhibit 64 Ameritech ISDN Deployment: (Customer Lines), 1993 Exhibit 65 ISDN Deployment for Specific RBOCs Exhibit 66 FCC Statistics: ISDN Lines, Kansas and Missouri, Exhibit 67 Verizon FIOS Pricing, December 2005 Exhibit 68 Korean VDSL Pricing and Costs, December 2005 Exhibit 69 Japan VDSL Exhibit 70 Comparing FIOS to Korea and Japan for Broadband Price and Speed Exhibit 72 Bell Atlantic, Opportunity NJ Broadband Exhibit 71 The Verizon ONJ Commitments vs FIOS Exhibit 72 Bell Atlantic, Opportunity NJ Broadband (Up to 45 Mbps & Higher)

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