 kapilThe Kapil
join:2000-04-26
Chicago, IL | What did ya' expect? This is sad. By making this move, Verizon is all but admitting that the FUSF charge on customers' bill was essentially a part of providing the service...with the FCC making the USF contribution go away, Verizon had to make up for the shortfall in revenue...and they couldn't do it by raising prices...how else are are they going to advertise DSL at prices artificially depressed to ridiculously low levels to stamp out what remains of competition/CLECs?
This is exactly why I pay Covad nearly 10 times as much for DSL...to keep competition alive ( not to mention the better service and support) |
| Not really. What it illustrates is that trying to tie what a company charges to some company incurred cost is an exercise in futility.
In a market based system, pricing has no relationship to costs, except that the price a company charges has to exceed its costs over the long term.
What the MBAs at Verizon correctly deduced is that people were willing to pay a given amount for DSL. When a specific cost was pulled away from them, they immediately replaced it with another, equally as bogus. |
