PDXPLT
join:2003-12-04
Banks, OR | quote:
Their profits on the regulated telcom services is not much so bundling DSL with it means they can make DSL pay for the other bundled services.
Actually, I think it's the other way around. To "bellhead" companies like AT&T, sellling flat-rate DSL service isn't too interesting. They do it as a customer-rentention mechanism: they have to do it, in areas where they have competition from cable MSO's. They don't want to lose the revenue stream they get from selling all those traditional telco services. So they are loathe to just sell DSL by itself. BTW, they would also like to tap into the pay-per-stream revenue the MSO's get from TV, too: thus Project Lightspeed, and FIOS in the case3 of Verizon.
This also goes a long way to explaining why DSL is largely unavailable in areas where the telcos face no cable competition. |
