Re: BellSouth does it again...

Kyle Platts (kwplat1@uswest.com)
Wed, 20 Nov 96 12:45:16 -0600

> 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 above statement simply cannot be true! The costs of =
installing a
residential like must be greater since on the average the copper =
runs are
greater to residential areas. And there have to be more than 3 =
times as
many residential phones as business phones. Also residential =
phones are
in service 24 hours per day while business phones are mostly used =
1/3 of a
day. When you consider that the phone companies are in this to =
make money
it is unlikely in the extreme that they are losing money on =
residential
service. If the statement is true then the telcos are losing =
money hand
over fist and we know that isn't true. Most likely is that they =
make a
little bit off of each residential customer and a LOT off of =
business
customers. When someone else brings in tone the business rates =
should
drop to close to residential rates. I am looking forward to this
happening.=20

Begin Response

Actually, residential lines are money losers. When the telephone =
started to become a commodity, business users subsidized =
residential customers. This still holds true today. The idea was =
to make residential service affordable to all (I beleive Megazone =
touched on this earlier). The cost of providing a dial tone is =
$38 in Minnesota (this is what I have figures for). This covers =
all of the costs from putting the cable into the ground to =
maintaining the voice switches and everything in between. What do =
you pay for a residential line?

Kyle Platts
CSS-Tech
!NTERPRISE Networking Services