Though it doesn't get talked about much, we've explored in the past how AT&T and Verizon have slowed (in Verizon's case all-but stopped) next-generation broadband deployment. Dave Burstein digs through the numbers to note that Verizon cut wireline capital spending by about two billion so far this year, and has cut back investment by about $7 billion over four years. AT&T's slowed U-Verse projections several times, and cut U-Verse investment by about 1/3 last year. Burstein suggests they're gunning for government funds:AT&T and Verizon didn't apply for stimulus funding, fearing it would come with some regulatory conditions. Instead they've been focusing on getting billions through "reform" of the USF -- which could net them billions in additional, poorly-tracked funds. While investment cuts have pleased short-sighted investors, they've also resulted in cable operators eating the telcos lunch in these un-upgraded legacy markets. These are the same companies that continually threaten to cut investment if they don't get what they want in DC, while hoping nobody notices that they already did.