You may have missed it, but a couple of weeks ago the FCC Verizon shill Ajit Pai and his Republican cronies voted to steal away an estimated $2 billion from municipalities and states by limiting the amount they could charge telecom companies, like Verizon, to build out their wireless 5G high-speed services. Telecoms, having reneged on tax-subsidized promises to robustly build out America’s high-speed broadband access, are now promising that all of those problems will disappear with over-hyped 5G wireless services. Pai and his two other Republican dunces on the FCC argued that in ripping off local coffers by limiting how much localities could charge for the permits to basically attach small radios to existing structures such as telephone poles to transmit signals, companies like Verizon and AT&T would use those savings to build out their 5G infrastructures! About that …!
But in an earnings call last week, Verizon CFO Matt Ellis told investors that the FCC decision won't have any effect on the speed of its 5G deployment. Verizon also said that it is reducing overall capital expenditures—despite a variety of FCC decisions, including the net neutrality repeal that the FCC claimed would increase broadband network investment.
As the sole Democrat on the FCC pointed out after its vote a few weeks ago, there was no reason why telecoms like Verizon would feel compelled to do anything more than pocket the savings.
"Comb through the text of this decision—you will not find a single commitment made to providing more service in remote communities," FCC Commissioner Jessica Rosenworcel, the FCC's only Democrat, said before today's vote. "Look for any statements made to Wall Street—not one wireless carrier has said that this action will result in a change in its capital expenditures in rural areas."
Surprise surprise. She was one hundred percent right.
An analyst asked Ellis if the FCC order would "change the sort of internal targets you have for the rollout of the small cell and 5G infrastructure and possibly allow you to go a little faster as you look out to 2019 and 2020."
Ellis responded that the FCC decision "doesn't necessarily increase the velocity that we see." Verizon is "going as fast as we can" already, he said.
You see, Verizon and others want to build out their 5G infrastructure because they want to make money. Like earlier 4G promises, it will be expensive, and the people that build out their networks first will have the best chance of penetrating the market and making more money. That’s why they will build out the infrastructure, whether cities charge them a dollar or a million dollars. Of course, this all follows the classic Republican hypocrisy of whining about states’ rights and big government overreach while using the big government to overreach on behalf of every major Republican donor. For his part, Pai is either as dumb as a pile of dirt or he is more crooked than Trump steak.
