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fAcEtIOUs
Premium
join:2002-03-03
kudos:4

reply to BF69

Re: Isps Build your Own!

said by BF69:

Sorry those companies still have to PAY Verizon to use thier lines. Verizon isn't out anything.
Verizon is out something when forced to resell at a price below their costs. In effect, gov't is mandating that Verizon SUBSIDIZE their competitors.


sporkme
drop the crantini and move it, sister
Premium,MVM
join:2000-07-01
Morristown, NJ
Reviews:
·Optimum Online

said by fAcEtIOUs:

said by BF69:

Sorry those companies still have to PAY Verizon to use thier lines. Verizon isn't out anything.
Verizon is out something when forced to resell at a price below their costs. In effect, gov't is mandating that Verizon SUBSIDIZE their competitors.
That's a complete myth. Their wholesale products (ISP buys backhaul into their ATM network, sells same product but with own IP, support, ancillary services) cost MORE wholesale than their loss-leader retail packages.

Their tariffed items like line-share or "naked" ADSL/SDSL are priced near the retail of buying full DSL service from them, plus they make money on CO co-location and power (figure near 5 figures for a single rack in a CO).

These generate more revenue per-line than their own retail products.

Note that they never produce any numbers when they make statements like yours that they "lose money" on wholesale stuff - that's probably true in the UNE-P stuff, but NOT for DSL.

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