AT&T, Verizon Reject FCC Funds To Close Digital Divide
http://www.huffingtonpost.com/2012/0...ref=technologyBut one expert said AT&T and Verizon likely declined the funds for another reason: They did not think it was enough. Phone companies have avoided delivering broadband to rural areas because their profit margins are higher in cities. It would likely take a much larger government subsidy to change their minds, said Benjamin Lennett, a policy director at the New America Foundation, a nonprofit, nonpartisan public policy institute.
"It underscores how flawed it is to rely on private companies to serve these rural areas where their margins are not going to be that high," Lennett said.AT&T and Verizon have shown declining interest in serving rural communities with wired Internet service.