Six Basic Quotes: Verizon and AT&T’s Wired-Wireless Busineses and Data.
1) AT&T Is Goosing Its Wireless Profits & Depressing the Wireline Profits 2) The PSTN is NOT POTS, Plain Old Telephone Networks 3) The PSTN Was All One Network, Not Two 4) Access Lines were Broadband, Not POTs Only 5) Verizon has been Manipulating Access Line Accounting. 6) AT&T has been Manipulating Access Line Accounting. 1) AT&T Is Goosing Its Wireless Profits
and Depressing the Wireline Profits AT&T’s 2010 Annual Report had a disturbing “Management’s Discussion”, which stated that the wireless division’s profit margins increased based on what looks like dumping expenses into the wireline division. “Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations-Continued Dollars in millions except per share amounts …”Historically, intersegment activity had been reported as revenue in the billing segment and operating expense in the purchasing segment. Upon consolidation, the intersegment revenue and expense were eliminated with the consolidated results reflecting the cash operating and depreciation expense of providing the intersegment service. As part of AT&T’s ongoing initiatives to manage its business from an external customer perspective, we no longer report intersegment revenue and report the cash operating and depreciation expense related to intersegment activity in the purchasing segment, which provided services to the external customer. While this change did not impact AT&T’s total consolidated results, the impact to each operating segment varied. In particular, the Wireless segment, as a purchaser of network, IT and other services from the Wireline segment, experienced a reduction in cash operating expense partially offset by increased depreciation expense with the net result being increased operating margins.” 2) The PSTN is NOT POTS, Plain Old Telephone Networks In the state of This law was passed in 1993 and it states that the PSTN is broadband, video, and that these services were to be part of the Public switch networks. – It’s law. (In the Matter of the Application of New Jersey Bell Telephone Company For Approval of its Plan for an Alternate Regulation, Decision Docket Number T092030358, 4/14/03) "D. NJ BELL'S PLAN FOR AN ALTERNATIVE FORM OF REGULATION MAY 21, 1992
--- NJ Bell's plan declares that its approval by the Board would provide
the foundation for NJ Bell's acceleration of an information age network
in Now Jersey and referred to by NJ Bell as ‘Opportunity New Jersey’.
Opportunity New Jersey would accelerate the deployment of key network
technologies to make available advanced intelligent network, narrowband
digital, wideband digital, and broadband digital service capabilities
in the public switched network, and thereby accelerate the transformation of NJ Bell's public switched
network, which today transports voiceband services (voice, facsimile
and low speed data), to a public switched network, which transports
video and high speed data services in addition to voiceband services."
(emphasis added). 3) The PSTN Was All 1 Network, Not 2 or Separated
by Multiple Affiliates And let us be very clear; what is described is a single
public network. In its 2001 “New Jersey Infrastructure Report,” “By integrating a number
of services on a single network, 4) Access Lines were Broadband, not POTs Only
“ 5) Verizon
Has Been Manipulating Access Line Accounting. This exhibit shows that of the total lines, Verizon only is counting around 21% of lines in service as of 2006. The FCC has failed to have the companies supply basic data on ALL lines. FCC Statistics of Common
Carriers,
6) AT&T
Has Been Manipulating Access Line Accounting. This is AT&T’s
information for first quarter 2012. AT&T claims that they lost over
5.2 million ‘switched access lines’ in 1 year or over 12%. “At March 31, 2012,
our total switched access lines were 35.4 million compared with 40.6
million at March 31, 2011…. Our total broadband connections were 16.5
million at March 31, 2012 and 2011. U-verse High Speed Internet subscribers
totaled 5.9 million at March 31, 2012, a 60.9 percent increase over
the year-earlier quarter. At March 31, 2012, the number of U-verse video
subscribers totaled 4.0 million, with a net gain of 200,000 subscribers
in the first quarter of 2012. …The number of U-verse voice connections
(which use VoIP technology and therefore are not included in the access
line total) increased by 164,000 in the quarter to reach 2.4 million.” But then, reading the rest of the information, AT&T doesn’t count its other ‘voice phone
calling’, which uses “VOIP” technology for “U-Verse” so it is not counting
2.4 million lines; these services go over the identical PSTN wires that
were already in place. Nor does it go into the additional 60% increase
of ‘high-speed subscribers’, which also goes over the same wire and
which would add 5.9 million lines, or the 4 million ‘video subscribers’,
which also goes over the exact same PSTN wire.
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