Where exactly is Verizon going to get the money to run fiber to everyone? Take a loan from Enron or MCI?
The costs are easily several thousand dollars per home, are they going to charge $150/month and require 5 year contracts to recoup their costs?! The Baby Bells are screwed and they know it
The simple way for the ILECS to increase their customer base is to deploy newer DSL tech which would increase availability past 3 miles. But they don't want to do that because they hate competing with the ILECS.