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The Internet Networking The Almighty Buck United States Technology

Fixing US Broadband Would Cost $100 Billion 484

I Don't Believe in Imaginary Property writes "According to a new report from EDUCASE (pdf), it would cost $100 billion to wire the US with fiber optics and keep our infrastructure from falling behind the rest of the world. Specifically, they recommend what has worked in many other countries — government investment and unbundling — which are often criticized by free market groups, even though those policies have resulted in faster, better connections for smaller total costs. Ars Technica mentions in their analysis of this report that the President will be releasing a report on US broadband today, too."
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Fixing US Broadband Would Cost $100 Billion

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  • by UnknowingFool ( 672806 ) on Thursday January 31, 2008 @05:11PM (#22252428)
    . . . but didn't we already pay $200 billion to get 45Mb/s fiber starting in the late 90s? I seem to remember how the telecomes complained that they didn't have the money to do it. And Congress passed the Telecom Act of 1996 to allow them to charge fees to help fund an infrastructure upgrade. Ten years later we barely have fiber and that fiber is dramatically slower and more expensive than promised. And you have to pay for it to be installed.
  • Fool Me Once (Score:5, Informative)

    by HunterZ ( 20035 ) on Thursday January 31, 2008 @05:14PM (#22252502) Journal
    From the discussion at Ars Technica:

    Originally posted by aix:
    WTF!!! :mad:

    We already paid 200 billion for fiber optic to the home, but never received it. Just search for "200 billion dollar broadband scandal". But here's a clip:

    Starting in the early 1990's, the Clinton-Gore Administration had aggressive plans to create the "National Infrastructure Initiative" to rewire ALL of America with fiber optic wiring, replacing the 100 year old copper wire. The Bell companies - SBC, Verizon, BellSouth and Qwest, claimed that they would step up to the plate and rewire homes, schools, libraries, government agencies, businesses and hospitals, etc. if they received financial incentives.

    Kushnick's "$200 Billion Broadband Scandal" says the government was promised 86 million households with fiber wiring delivering bi-directional 45 Mbps speeds, capable of handling 500 channels by 2006. He calls it a fraud case, with deft omission in the annals of the FCC, that cost households at least $2000 a piece but got nothing in return.


    I think there were subsidies to the telcos as well as tax breaks and incentives .... and what do have to show for it ??

    BUPKISS! Freaking nothing, zilch, nada, zip, zero, goose egg, F%&KING damn 20th place :mad: :confused:

    And yes I'm going to point out it was the dems who were in the seat when this happened. Only to show that both parties are really different sides of the same coin.

    Originally posted by :
    I'll ignore the billions spent, and the billions we still have to spend in Iraq...

    I'll ignore the other major issues that maybe this country needs to spend 100 Billion on first...

    And now, baring all of that...
    *WHAT THE FUCK*
    Any of you know this story?
    http://www.teletruth.org/ [teletruth.org]http://www.teletruth.org
    http://www.teletruth.org/PennBroadbandfraud.html [teletruth.org]http://www.teletruth.org/PennBroadbandfraud.html
    http://www.newnetworks.com/broadbandscandals.htm [newnetworks.com]http://www.newnetworks.com/broadbandscandals.htm

    In short, Verizon, ATT, SBC and the other big TeleComs were supposed to do this, FOR US, in the last 10-15 years.

    They got major tax breaks and government handouts to do this.
    So where is it?

     

    16th in the World in Broadband

    This is one of the largest scandals in American history.

            * By 2006, 86 million households should have been rewired with a fiber optic wire, capable of 45 Mbps, in both directions. -- read the promises.
            * The public subsidies for infrastructure were pocketed. The phone companies collected over $200 billion in higher phone rates and tax perks, about $2000 per household. ....
    and more from --> http://www.newnetworks.com/broadbandscandals.htm [newnetworks.com]http://www.newnetworks.com/broadbandscandals.htm

    Reports like this piss me off, cause the first thing I think of, knowing the history of How we're already supposed to have fiber to the home, is who paid for the report? and what is it really asking for?
    Hear hear! I can't believe noone brought this up sooner, or even in the article. There's pretty much no hope at this point for the US to have a globally competitive broadband Internet infrastructure.
  • by imgod2u ( 812837 ) on Thursday January 31, 2008 @05:14PM (#22252508) Homepage
    Copper is not as flexible, has shorter range, and more susceptible to noise than fiber. A copper infrastructure would require more repeaters, hubs and insulation around the entire network and it would be less reliable due to EM interference and require protection against lightning and such. Fiber has none of these problems and is advantageous in every way except (currently) cost. Plastic fiber hopes to solve this last problem.
  • by Anonymous Coward on Thursday January 31, 2008 @05:21PM (#22252624)
    Nice response.

    Seriously, this would have cost 10% of that back in the '90s when we ALREADY PAID FOR THIS as part of the Telecom Act of 1994. The telcos simply have not delivered what they promised for receiving deregulation and all those tax breaks.

    Or maybe this is where that imaginary $9B that Worldcom has went.
  • by Toasty16 ( 586358 ) on Thursday January 31, 2008 @05:21PM (#22252640) Homepage
    Seeing as the telecoms gained about $200 billion in increased fees and tax breaks since AT&T's breakup in 1984. That money was supposed to be used to upgrade the entire nation's infrastructure from copper wiring to fiber optics, but was instead used to pad the pockets of executives and shareholders. Find out more here [newnetworks.com].
  • by statemachine ( 840641 ) on Thursday January 31, 2008 @05:26PM (#22252728)
    Fiber has none of these problems and is advantageous in every way except (currently) cost. Plastic fiber hopes to solve this last problem.

    We've had plastic fiber for several years now. However, it is not the material itself that costs so much, it is the installation.
  • by Citizen of Earth ( 569446 ) on Thursday January 31, 2008 @05:27PM (#22252752)

    but didn't we already pay $200 billion to get 45Mb/s fiber starting in the late 90s?

    Yes, it was the biggest rip-off in history. The telecoms took the money, didn't produce anything useful, and were never held to account.

  • by Picass0 ( 147474 ) on Thursday January 31, 2008 @05:33PM (#22252834) Homepage Journal
    If you pay a phone bill, you've been paying for internet infrastructure for years. You've been paying for this for years.

    Instead of double dipping and asking for more money to upgrade/create internet infrastructure why don't they start spending the money they already collect IN THE RIGHT PLACE?

    FEDERAL UNIVERSAL SERV FUND
    http://www.fcc.gov/wcb/universal_service/welcome.html [fcc.gov]
    The goals of Universal Service, as mandated by the 1996 Act, are to
    promote the availability of quality services at just, reasonable, and
    affordable rates; increase access to advanced telecommunications
    services throughout the Nation; advance the availability of such
    services to all consumers, including those in low income, rural,
    insular, and high cost areas at rates that are reasonably comparable to
    those charged in urban areas. In addition, the 1996 Act states that all
    providers of telecommunications services should contribute to Federal
    universal service in some equitable and nondiscriminatory manner; there
    should be specific, predictable, and sufficient Federal and State
    mechanisms to preserve and advance universal service; all schools,
    classrooms, health care providers, and libraries should, generally, have
    access to advanced telecommunications services; and finally, that the
    Federal-State Joint Board and the Commission should determine those
    other principles that, consistent with the 1996 Act, are necessary to
    protect the public interest.

    FEDERAL UNIVERSAL SERV FUND PRIVATE LINE
    http://www.shore.net/support/usf.html [shore.net]
    The Universal Connectivity Charge is 9.25% of state-to-state and
    international long distance charges, and on Internet circuits. (ATM,
    Frame Relay, Private Line, Internet Access and SDSL)
    [NOTE: This may be the local number portability surcharge - ED]

    E911 SURCHARGE
    http://www.legis.state.ia.us/GA/79GA/Legislation/HF/00200/HF00279/Current.html [state.ia.us]
    The surcharge shall
    3 21 be collected as part of the access line service provider's
    3 22 periodic billing to a subscriber. In compensation for the
    3 23 costs of billing and collection, the provider may retain one
    3 24 percent of the gross surcharges collected. If the
    3 25 compensation is insufficient to fully recover a provider's
    3 26 costs for billing and collection of the surcharge, the
    3 27 deficiency shall be included in the provider's costs for
    3 28 ratemaking purposes to the extent it is reasonable and just
    3 29 under section 476.6. The surcharge shall be remitted to the
    3 30 E911 service operating authority county auditor or the
    3 31 auditor's designee of the county in which the subscriber
    3 32 resides for deposit into the E911 service fund quarterly by
    3 33 the provider. A provider is not liable for an uncollected
    3 34 surcharge for which the provider has billed a subscriber but
    3 35 not been paid. The surcharge shall appear as a single line
    4 1 item on a subscriber's periodic billing entitled, "E911
    4 2 emergency telephone service surcharge". The E911 service
    4 3 surcharge is not subject to sales or use tax.

    SCHOOL INFRASTRUCTURE TAX
    http://www.state.ia.us/tax/educate/78511.html [state.ia.us]
    IOWA SCHOOL INFRASTRUCTURE LOCAL OPTION TAX
    QUESTIONS AND ANSWERS

    FEDERAL TAX
    This should be the federal excise tax

    STATE/LOCAL TAX

    FEDERAL ACCESS CHARGE
    http://www.fcc.gov/cgb/consumerfacts/accesschrg.html [fcc.gov]
  • by Samgilljoy ( 1147203 ) on Thursday January 31, 2008 @05:47PM (#22253140)

    How much do we spend yearly on the pentagon again?

    Well, as to what is officially acknowledged by the DoD Budget Office... I can't say I understand the differences between Direct Budget Plan, Budget Authority, and Outlays exactly, since the chart includes this year, and they must all be estimates of something then, but I'll give you the lowest numbers, which are marked Outlays.

    FY 2006 : 499.277 Billion (what a bargain, a whole empire for only 499 instead of the usual 500)

    FY 2007 : 516.508 Billion

    FY 2008 : 459.754 Billion

    You were probably asking a rhetorical question, but in case someone wanted to know, I looked it up.

  • by c6gunner ( 950153 ) on Thursday January 31, 2008 @07:08PM (#22254652) Homepage

    A free market is quite capable of failing to provide for people's needs
    No, it isn't, because a free market has no responsibility to provide for peoples needs in the first place.

    Most simply, if we're going to count the Soviets' mistreatment of their citizens as part of the price of their space program, then we should count the fact that homelessness exists as part of the price of ours. Is that totally unreasonable?
    Yes, it is. Why? Because western governments and economies aren't meant to provide for people. The whole basis of a capitalist system is the idea that you are responsible for yourself. If you fail to provide for yourself that's not the government's fault, it's your own. When you starve, you have only yourself to blame. In a communist system, on the other hand, people starving becomes the responsibility of the government because the government controls every aspect of their lives, and of the economy. A communist government does not allow you the means to provide for yourself, so they automatically become responsible for you.

    How can you possibly not understand the difference?
  • by denissmith ( 31123 ) * on Thursday January 31, 2008 @10:37PM (#22256970)
    Until you actually look at the facts. The tax cuts were not the same percentage cut for everyone. They were weighted to give the most percentage reduction to the top earners. They contained cuts like dividend and capital gains adjustments that specifically target wealthy rather than middle class taxpayers. They contain other provisions that can ONLY be used by business or high income earners (special depreciation rules for businesses, etc). Your argument is the facile one, not the original poster. Why- and this is not directed at you personally, but at all of us collectively- do we rag someone out for a reasoned argument before we acquaint ourselves with the actual facts? Aren't we supposed to be tech savvy types, don't we respect facts?
  • by slashqwerty ( 1099091 ) on Friday February 01, 2008 @01:49AM (#22258124)
    I find it ironic you say Bush didn't protect and defend the Constitution of the USA

    Wow. You come up with one case where he may have done something in compliance with the constitution. Rest assured if his backers wanted that bill signed he would have signed it regardless of the constitution. The man has spent most of his presidency making a mockery of the constitution.

    He has:

    1. Suspended habeas corpus in violation of Article I, section 9 of the constitution.
    2. Donated funds to "faith based" organizations in violation of the first amendment.
    3. Conducted widespread surveillance on millions of phone calls and internet communications without a warrant in violation of the fourth amendment.
    4. Barred prisoners from having a trial in violation of the fifth amendment.
    5. He has violated every single provision of the sixth amendment.
    6. Had people tortured in violation of the fifth and eighth amendments.

"What man has done, man can aspire to do." -- Jerry Pournelle, about space flight

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