If Verizon agreed to providing FIOS to NYC by 2014 then they should be held accountable. If Time Warner promised to deliver on their services, they should be heed accountable Last I read, Verizon and Time Warner are not bankrupt and insolvent.
NYC is a BIG reflection of one of the biggest issues at hand. City state and Federal concessions to the telcos/service providers and the failure to deliver/adhere to agreements by the telcos/providers. Bloomberg needs to say, either deliver on your agreed to deliverables or face financial penalties. The "courts" need to uphold agreements and not invalidate them just because "someone has been greasing the palms".
I know it's just a pipedream for all this to actually happen but hope springs eternal