Re: USR Lowers Pricing

Sherwood Pekelo (spekelo@iav.com)
Thu, 3 Apr 1997 16:26:56 -1000 (HST)

On Thu, 3 Apr 1997, Karl Denninger wrote:

> On Thu, Apr 03, 1997 at 05:52:30PM -0600, Jonah Yokubaitis wrote:
> > On Thu, 3 Apr 1997, Jordan Mendelson wrote:
> >
> > |
> > |It looks as if USR has lowered prices CONSIDERABLY for their terminal
> > |services. We just got quoted a price for a USR Total Control model with 48
> > |modems + 2 pri for $14,352. This includes everything but a $250 fan.
> > |That is about $295 per port.
> > |
> > |Now, I paid $11,000 for my PM3. It's a nice box, includes 2 PRI, but I
> > |elected to only get 24 modems, but to upgrade to 48 modems it's going to
> > |cost me $5,691 for a total cost of about $16,700.
> > |
> > |At the time we purchased the PM3, the USR was about $560/port. I guess
> > |they are going all out to support x2. Is this the beginning of a price
> > |war?
> >
> > USR is going for the balls. You can bet Ascend/cisco are in chaos
> > right now.

Is this under cutting of prices considered Unfair trade? What is the cost
to USR for manufacturing a TC? I've heard that Livingston runs on a tight
margin to ISPs, but still they have a positive markup...unless USR was
seriously gouging on their pricing ( heh, whatever the market would bear I
guess)

--
Aloha,

Sherwood