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Bell Monopoly Profits Outrageous: America's Phone Customers Are Being Overcharged By Their Local Bell Companies About $200 Per Household In 2000.
SUBTITLE:
Bell Profits Violate Every State and Federal "Fair and Reasonable" Statute.
In 2000, the Bells' profits were 256% above the Business Week 500, 170% above the "Top 9" companies and 212% above the other Utilities. We estimate that $17.1 billion was overcharged in 2000 --- about $200 a household. This overcharging is based on comparing the Bells' profits with these groups of companies, and using the basic assumption that profits are supposed to be "fair and reasonable" which appears in every state and federal law, including the Telecommunications Act of 1996.
We believe these excess profits were collected using the pretense of rewiring America with broadband. To read our analysis see: http://newnetworks.com/Bellprofits2001.htm
NOTE: Our estimates of the excess profits from the fiber-optic plans, $58 billion, is a cumulative number. We estimate that about half of the customer overcharging, $8.5 billion, was collected in 2001 in the name of broadband. For a detailed accounting see "The Unauthorized Bio of the Baby Bells" , pages 169-215, pages 355-367.)