How The Bell Mergers Killed Off The Fiber Optic Deployments And Competition.

 

 From $200 Billion Broadband Scandal

 

  • SBC is the merged companies of Pacific Telesis, SNET, Ameritech and Southwestern Bell. Then SBC merged with AT&T and kept the name.
  • Verizon is Bell Atlantic, NYNEX and GTE. Verizon then bought MCI.
 

Verizon and SBC Fiber Optic Broadband Spending and Households

 

 

Money (billions)

Households

Merger

Shutdown

SBC

 

 

 

 

Pacific Telesis

$16.0

5,500,000

1997

1997

Ameritech (3states)

$6.6

6,000,000

1999

2000

SNET

$4.5

1,000,000

1998

2000

SBC, Texas

$1.5

 

 

 

Pronto

$6.0

 

 

 

SBC Total

$33.6

12,500,000

 

 

Verizon

 

 

 

 

Bell Atlantic

$11.0

8,750,000

1997

1997

NYNEX (in MA)

$.5

2.000,000

1997

1997

GTE

$4.1

7,000,000

2000

2000

Verizon Total

$15.6

17,750,000

 

 

TOTAL

$48.9

36,500,000

 

 

 

The primary finding -- at every merger, whatever fiber optic based services were being built or deployed, were shut down when the ink dried. This impacted 26 states, not including the 28 territories of GTE. For example, when SBC bought California’s Pacific Telesis in 1996, SBC closed down the Pac Bell fiber deployments which were to reach 5.5 million customers by 2000 at a cost of $16 billion, even though state laws were changed to give Pac Bell more money for the new upgrades.

SBC was to spend $33.6 billion and have 12.5 million households while Verizon was supposed to spend $15.6 billion on 17.7 million households. Combined, Verizon and SBC were to spend $48.9 billion and have 36.5 million households by 2000.  – By 2006, the Bell companies should have deployed 86 million households

As discussed, this is using their own data, such as annual reports, and was fiber-to-the-home services, capable of 500 channels and 45mbps services in both directions.