me1212
join:2008-11-20
Pleasant Hill, MO | reply to fAcEtIOUs
Re: Question arises on WHY the rural last mile is being spun off So they r making less than it cost them to provide service? Well then I cannot blame them for doing this, y would you stay in an area where u cannot make money. |
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| Don't forget those same telco's CAN and DO get USF money and in some states like MO do not regulate much on price. That was a story even on here. |
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| said by hottboiinnc:Don't forget those same telco's CAN and DO get USF money and in some states like MO do not regulate much on price. That was a story even on here. The bottom line is this - Verizon wouldn't sell the lines off if they were making money on it. If they were profitable they would keep those customers. |
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Reviews:
 ·WOW Internet and..
1 edit | VZ would sell them off regardless. They only want the areas where they can get in easy and put out FiOS. Many of the areas most likely doesn't want them. They're prices are sky high and service is shitty.
Also they have to be making something if VZ is keeping the VZ Business side which only caters to business services which they obtained after taking over MCI/UUNET. VZ just wants fast ROI and they want it yesterday, and they plan on doing that by cherry picking their areas. |
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wierdo
join:2001-02-16
Tulsa, OK Reviews:
·Cox HSI
 ·T-Mobile US
| reply to fAcEtIOUs
said by fAcEtIOUs:The bottom line is this - Verizon wouldn't sell the lines off if they were making money on it. If they were profitable they would keep those customers. They are guaranteed to make a profit, 8-12 percent by law in most states. That's the wonder of regulated monopolies.
Gone are the days when long distance subsidized the rest of the system. The rural telcos get USF money. That is the extent of their subsidy.
Verizon is selling these systems not because they don't make money, but because they don't make enough money. They'd rather service areas where they can roll out unregulated services on which they have full authority to set prices as they see fit.
Gone are the days when companies (and stockholders) are willing to make a steady profit. Growth is a must. Verizon's only way to make the numbers look better is to sell more services over the same line. Selling off the low-ARPU areas is just one way to cook the books.
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It's wierdo, not weirdo. Yes, I know that's not the 'proper' spelling of the similar english language word.  |
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