AT&T Defunds 9-11 To Undercut Competitors
There are definitely times when you learn of a business practice where you think, "Wow, my opinion of AT&T could not go any lower." And then, BOOM. You find out that AT&T was intentionally underfunding a 9-11 call center in order to undercut its competitors in bids.
Yikes.
Did we mention that this is not an isolated case? AT&T has been busted in several jurisdictions for this practice.
Hat tip to Stop the Cap! for bringing my attention to a lawsuit brought by Hamilton County against AT&T for its practice of under-reporting the number of business lines it provides.
This practice allows it to undercut all competitors in the market, including the community fiber network run by Chattanooga's Electric Power Board. From the Times Free Press article:
It is an incredible racket.
The lawsuit claims that, since at least July 2001, AT&T has filed monthly and annual reports listing fewer business phone lines than they actually provide. Under Tennessee law, phone companies must pay $3 per month per line to pay for 911 access. ... In a March phone service bid proposal for Hamilton County, AT&T stated it would not collect the $3 rate and instead collect $2 per line per month. That allowed the company to underbid the next lowest bidder by 69 cents per line per month, “unlawfully increasing its profits at the expense of revenue to support the critical emergency services that” 911 provided, according to court records.A difference of $.69 may not seem like much, until you consider they may be providing 1,000 lines - which is a difference of $690/month or $8,280/year.
It is an incredible racket.

Building a new network requires a massive up-front capital investment - in this case the city will have spent $4.4 million to connect the first connection. Good thing they aren't all that expensive!
The article identifies two main sources of the delays: difficulty in getting on the poles owned by Progress Energy and long delays in receiving the fiber-optic cable they ordered (stimulus projects have hogged the supply). Rather than taking 12 weeks, they had to wait 30. Delays cause problems: