Re:ISPs in trouble

Doug McClure (closer@scescape.net)
Tue, 12 Nov 1996 15:18:25 -0500

I'm actually quite certain they don't give themselves price breaks.
That's hardly an effective strategy for a mega conglomerate that can
afford to lose money when they're competing with cash-tight ISPs.
Rather, they do like Bellsouth did here - jack ISDN tariffs for ISPs
from $95/month to $500/month. Bell can sell ISDN dial-up at
$19.95/month. They'll lose money but it's always a race who will be able
to hold out longer. Guess who? Plus I know it really hurts for me to
sell something to myself.

-doug

Owen DeLong wrote:
>
> > > Matt,
> > >
> > > I know you probably don't think that this is going to happen, but if it
> > > does, isn't there a way we can perform some kind of civil and/or anti
> > > trust action? What they're proposing sounds rediculous.
> >
> > They are not breaking any laws. What is NYNEX doing to us now that they
> > are not doing to EVERY one of their customers. We can't sue them if they
> > don't single us out. The FCC can't charge us specifically either because
> > then it would be a tax on the industry. That tax is left to the PUC to
> > decide. The FCC could force us under PUC control but we are not a
> > monopoly *or* a public utility.
> >
> Competing with an internal price advantage. Same as Pacific Bell Internet.
> Bet that Pacific Bell Internet doesn't pay the same prices for incoming lines
> and such nor suffer the same delays that the rest of us do when attempting to
> obtain service from Pacific Bell. They aren't competing directly with the
> rest of their customers. They aren't using internal pricing advantages on
> circuits to price the rest of their customers out of existance. THAT's the
> definition of anti-trust last I looked.
>
> Owen