Which is Verizon's dog in this fight: people are cutting the landline cord and relying on cellular or VOIP services, and Verizon wants a cut off all the phone business they are no longer receiving.
Verizon is as active at cutting folks off as folks are leaving. Their goal is to get rid of copper because 1) the plant is ancient and a maintenance headache, 2) it can't support high-data-speeds, 3) the data business is largely unregulated (including the VoIP service that Verizon provides on top of the fiber data service), and 4) the labor contracts are much different between fiber and copper plant.
Verizon has received permission in many states to cut off copper altogether and move people to fiber (ours is one: copper service was terminated in late 2016 - you want to stay with Verizon, you move to FiOS.... we had someone in our neighborhood get in a real snit about losing copper service and so forth, she didn't want to go fiber for a bunch of reasons including some that cost her money and she went wild on Nextdoor).
At this point, there are enough folks on VoIP services other than Verizon (including Verizon's own) that there would be holy hell to pay if they cut it off - and I have no doubt that that would cause legislation because of the "public safety" aspect.
That move was absolutely what I’ve been saying for decades: Judge Green busted it up horizontally... local, L/D, value added services plugged into local... and the businesses just re-arranged their structures vertically... three big companies with all of those old horizontal products. Literally nothing changed. Just mergers of companies into a vertical structure.
It rearranged the deck chairs and did let some new competitors in - so it was effective from that sense. And it allowed innovation. So yes, things did change, but in the end the companies focused primarily on "legacy" have been absorbed back into the borg.
There was no monopoly busting at all. It just flipped the monopoly on its side and allowed two more. Cable getting into telecom was disruptive but the mergers continue toward three companies in the end game.
Today’s Verizon was mainly created by their purchase of WorldCom and MCI. Also both around before divestiture. The divestiture case was brought BY MCI who was putting up alternate microwave routes around Bell/AT&T making what once was a “long distance” call, a local call, crossing inter-LATA borders.
It was actually created when 2 old RBOCs (Nynex and Bell Atlantic) merged in the mid 90's. There was a huge landline presence, and they acquired more as they gobbled up other companies. SBC went back and bought what was left of AT&T.
Divestiture was really about busting the “long distance” monopoly and had very little to do with (at the time) the local loops. In fact nobody cared at all about the local loop then, because it was either residential POTS, or it was business and copper T1. ISDN was the pipe dream of Pacific Bell dying to offer data services everywhere and almost nobody had it. Almost no place except s central office had ever seen or heard of a fiber optic yet. They were out there and some deployments were done but considered a novelty but a useful one for future growth thanks to Bell Labs.
It was about more than long distance, but you are correct that there wasn't much concern about the local loops as there wasn't a lot of overlap - and no real ability to compete until both cellular - er PCS - and cable came along because no one in their right mind would overbuild a wireline plant in the regulatory environment. Interconnect was part of it, too. But a lot was business practices, even though each state had their own tariffs and regulatory system (which cable and VoIP avoids).
You do realize Verizon is only a local loop POTS provider in a few small areas and it’s never been the majority of their business, and until they did FIOS they wanted to rid themselves of it, but couldn’t because they purchased the local CLEC in those areas, right? Barring their wireless business, which came later and really was the purchase of a whole bunch of B-Side AMPS networks to start that, they were a long-haul company. Back when they first rebranded the few local loop areas they (were forced to) serve, they didn’t want anything to do with operating those. They wanted the backbone railroad fiber optics and microwave links from their old MCI days to carry their data network they bought from WorldCom.
Verizon actually did have a huge POTS footprint from Maine to Virginia, which came (back) to them through the RBOC acquisitions. They still do, though as noted above they've been moving them to FiOS and will soon start moving to 5G. They did sell/shed a lot of the wireline service, especially in rural areas. Don't recall who bought it, but it strikes me that it might have been Frontier.
The cell system was originally one of the A ("wireline") blocks in their service areas (around here, SBC dba CellularOne had the B block). Vodaphone is an equity partner in the deal (or was, the companies were working toward full ownership by Verizon). When they could acquire RSAs, they did so, which is why they have the largest coverage footprint in the US. And they did acquire other companies, too.
Today they’re still making way more money doing that than residential, last time I looked at their books. And of course their cellular company took off after they owned more spectrum than anyone else. Verizon is technically the closest thing we have to a traditional telecom monopoly of the sort that they had busted up by Judge Greene. Ironic.
Verizon and ATT are the two closest things we have to the old monopoly. Both have substantial portions of their networks that were former RBOCS, and both provide local loops, local video services, business services, long-distance networking, and so forth. Both also have the largest (and arguably the best 2) wireless networks, which, with the spectrum they have and the capital they can leverage in auctions put them in the forefront of using 5G to do away with a lot of the local loops.
No, because municipalities have still blocked the last mile and made long term sweetheart deals with the local ISP. If they renege on that they might as well call the local loop a common carrier, and once they do that there’s really no point in having competition at all. Just call telecom a government monopoly and rebuild the Bell System, because that’s what you essentially just did, blocking the local loop.
Much more subtle and complicated than that. Yes, local and pole attachments are part of it. State regulations also come into play. But they have managed to make the data services largely exempt from the regulatory stricture that applied before. The Federal and State regulations have largely become obsolete.
The locals get little from the companies. Yeah, most get some tax revenue, including the 911 tax, but they'd get that regardless. Pole attachment is a big deal, but it frequently goes to the electric utility.
Every carrier would gladly drive prices to the floor and beat the other carrier senseless to deliver bandwidth to your door if they could get access to do so. Or at least they would in good times when they had lots of cash on hand to blow and could get loans to build infrastructure.
They have learned from the airlines that you can't win on market share alone. And at 10% per year annual increases on existing plant, it's not about beating the competitor by pricing down.
Competition is already really fierce. It’s just only in locations where the local loop is already in place for both competitors. Anyplace the local loop isn’t already there, they put it off because the capital expenditure has to have a payback that’s QUICK or they get hammered by the stupid standard problem of the Wall Street casino... “must make profit each quarter.” No investing capital for the future, allowed. No bad quarters. No saving up to build it out either, they’ll say you have “too much cash on the books”.
Maybe, but the real issue is the expense of the local plant and uncertainty of future competition that makes investors balk. Especially when 5G is on the horizon and VZ has publicly promoted 5G as a replacement for local loop. I think they'll do it, but it's as much about protecting the base as anything else.
The smartest municipalities are putting their own fiber in the ground and to the curb. That’s not efficient from a “what you’ll pay for it in taxes” perspective but it fixes the problem of one commercial carrier to each home or business. Once that’s in place the carriers could all just build out to the POP for the municipality. But... this is usually where the municipality idea falls apart. They once again (stupidly) give only one provider a sweetheart deal to provide service even AFTER the taxpayer owns the fiber. It’s so freaking stupid.
I wouldn't call them "smartest". Like with sweetheart stadium deals, stuff that's built out by the municipality to save the commercial company money isn't good use of tax money when folks are clamoring for that to go to health care and social programs. These days doing a municipal install is likely to cause election issues.
Even Google has backed off of their ambitious plans for local fiber. With the market cap of Google, it removes the financial constraint, but still leaves the Wall Street valuation and return issue. If Google pulled back it means that they don't see a rosy revenue picture when up against the major telecom and cable companies. The pie is only so big.