Re: BellSouth does it again...

Chris Trown (ctrown@ecst.csuchico.edu)
Tue, 19 Nov 1996 15:00:35 -0800 (PST)

Jeff T. Carneal sez
>
> On Tue, 19 Nov 1996, Mike Rodriguez wrote:
>
> > At 11:15 AM 10/25/96 -0400, Matthew S. Crocker wrote:
> >
> > >> $20 a month was for RESIDENTIAL USE of lines. You use them for a business,
> > >> you should pay business rates... you cheated, you got caught, now you're
> > >> screwed, and I seriuosly doubt your public service commission is going
> > >> to have much sympathy for you. 19 ISP's here in Tennessee got caught too.
> > >
> > >Just wish some of the ISP's in this area would get caught....
> > >
> > >It doesn't matter what the RBOC's charge you as long as its fair. If
> > >everybody plays by the same rules you can be competitive. If you have to
> > >cheat to win you are a sorry excuse for a business.
> >
> > Cheat? What about Bell South selling 'unlimited' PPP for $20? They
> > own the lines and therefor pay WAY, WAY less than residential rates,
> > they, by virtue of their monopoly, have the name, address and phone
> > number of EVERY one of my potential customers, and they use that
> > information to direct mail advertise. They're certainly not playing
> > by the same rules.
>
> Let's not forget the fact that PacBell officials have blamed ISP's for
> charging (roughly) $20 / unlimited as the cause of the switches being
> bogged down. These same officials actually admitted that flat rate
> internet + flat rate phone service was actually LOSING them money, yet
> they continue to do it. Unless I'm mistaken, isn't it illegal to lose
> money in order to beat your competition and drive them out of
> business....looks to me like that's what's happening.
>

Things change when you are talking about a business that is regulated.
Also, while they actually do lose money on residential service, they make up
for the difference with charges on business services.

The PUC in CA has deemed that basic, residential service is a basic
service. Their goal is to bring the rates down so that low-income households
can afford phone service. Business customers pick up the difference. That's
why business rates are so high compared to residential.

Chris...