British Telecom Whistleblower Highlights Telco Fraud
Telco Taking Subsidies, Massively Over-Charging For Deployments
Like several United States telcos, UK telco British Telecom called running fiber to the home "premature
," instead opting to milk copper for as long as possible. Also like telcos here, British Telecom has been a master at getting subsidies for doing very little, recently nabbing a £1bn public subsidy ($1,612,914,393) if they promised to expand their network (mostly FTTN) to another 12 million customers. The telco recently ran into a spot of trouble however when a whistleblower leaked data showing the telco was ripping off taxpayers
by massively inflating costs:
BT is trying to disguise its true costs to supply next generation broadband to the Final Third by adding overheads, new job types and not reducing costs where these jobs are already accounted for. If BT’s proposals are accepted, local authorities could pay almost twice the actual costs, and BT will not have to match public funds with its own.
The end result is that the telco is over-charging taxpayers by around £500million ($806 million). British Telecom has responded by firing the whistleblower for leaking confidential information
, though the government appears ready to now launch an investigation
. The telecom subsidy disaster story is not unique; United States telcos have gleaned billions from the FCC's Universal Service Fund for services never delivered, with the government constantly failing to audit spending -- or in some cases bothering to see where funds were spent.
Re: should give the person a job for doing this Not only that, shenanigans like these is precisely why the Aussie Government had enough and decided to built their own FTTH network.
I guess much like ourselves, the Brits have people who will defend the private sector to death, all while blocking their ears to any evidence that illustrates otherwise.
In addition, repeating over and over again that the Private sector does everything better.
Re: should give the person a job for doing this
said by Telco:Would you be referring to the very same Aussie government that now wants to block all websites the they don't wish you to see? The one that wants to keep records of everything that Aussies do on the net?
Not only that, shenanigans like these is precisely why the Aussie Government had enough and decided to built their own FTTH network.
Re: This is why... We definitely need a national wholesale FTTH network. Heck, we can even have each state manage it, since these last century states rights types (i.e. Republicans) love that sort of inefficiency; under the guise of small government.
By having the government own the underlying infrastructure, any number of 'Private' providers can then sell their services over it; versus the highly-competitive status-quo of Verizon.
Re: This is why...
Not true. Look at salaries doctors make here
We rank close to dead last in everything but defense, an area we now spend like the Soviets once did.
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Blaming this mess on the GOP is stupid. This is not the GOP way, this is the modern American way. Until people look past party affiliation and stop pointing fingers, this mess will never get cleaned up. Both democrats and republicans have run our infrastructure into the ground because neither one has any real experience with fixing the problems.
Have you read the Patriot act? That right there is why we must never have a government network unless our government changes. It does not matter that it was signed into law by a republican, because it was just extended by a democrat. Our government does not understand where human rights should be. Everything else you are more than welcome to dispute that I said about a government network, but I don't think you'll be able. Reality is that.
When it comes to fixing our broadband networks, we can fix them. By setting some real regulations and real requirements that must be met and enforced with an iron fist. No, that does not mean 1gbps overnight. But the idea of letting companies swallow billions of tax dollars has been allowed to exist under both parties, because both parties don't know what the f*** they are doing. If we got on top of things and said they could not do that, must offer service to 100% of customers in their territory (many coops already do this) put an end to low caps, must have a certain speed available to all customers at a price reasonable for the local economy, stopped monopoly mergers and deals, made it more friendly to expand service to new areas, etc. We could offer incentives to help them get this done and we could fix this problem. But if we continue to say it is the GOP's fault or the Demo's, we will never go anywhere because both parties favor the companies. Neither favor us. And wishing for unrealistic national networks is not going to help us in any way.