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 bistro777Donuts-Is There Anything They Can't Do?Premium
join:2002-02-07
Englewood, CO | The deregulation debacle - oops, debate.. Sometimes ya jus’ gotta stir things up.  So here are a couple of links for strongly-worded (and admittedly one-sided) discussions regarding deregulation:
»www.techcentralstation.com/1051/···-021902D
“The decline in the number of CLECs since the fall of 2000 until recent months led to a stark increase in residential rates for broadband services - from $39.40 in January of 2001 to $51.67 by year's end. And lawmakers and regulators need not even go there. They can simply look at the record of $1.8 billion fines and penalties since 1996 that the Bells have been assessed by regulators for failing to meet their legal obligations - obligations they oftentimes initially agreed to and even helped promote. And (deregulation) won't come as any advantage to rural America, as the Bells are telling members of Congress it will. The Bells have gotten rid of 20 to 30 million rural access lines. They have no intention to go back there without some additional heavy subsidies.”
»www.netaction.org/broadband/bells/
“If the Regional Bell Operating Companies (RBOCs) had delivered on the promises they made in the early 1990s, almost half of America's households and the vast majority of the nation's schools would already be wired with high-speed fiber optic networks. If the Bells had delivered on what they promised, low-income urban neighborhoods and rural communities would have been wired by now, and the digital divide might have been avoided. …There is a significant flaw in the incentive regulation plans adopted by various states. When a monopolist is deregulated before competition takes hold, the result is an unregulated monopoly.”
Yes, Chicken Little, methinks the sky is falling…
Rep. Chris Cannon, R-Utah: "You can't underestimate the amount of knowledge most members of Congress have about this issue." - - Now that's comforting, huh? | | |
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| While I am on the side of the CLECs, These communities are primarily unserved...
They don't care about competition with CLECs, many of them simply want service, and aren't moved by the arguments of critics, much of which center around the competition of tomorrow. | |
| reply to bistro777
quote:
Under the second scenario, the telephone companies would exercise their remaining competence—their ability to manipulate the various agencies of government to their own advantage—to make it illegal (or prohibitively difficult) to make progress in end-to-end internetworking. Under this second scenario, the Internet would be transformed into a centrally controlled telephone-company-like (and TV-network-like) network for use by approved applications only. In nations that fall victim to this second scenario, those sectors of the economy that depend on progress in communications would devolve to third-world status, while nations that support end-to-end networks race ahead.
David Isenberg "The End of the Middle"
»www.spectrum.ieee.org/WEBONLY/pu···ude.html
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"These are complex issues. If you are not mentally up for it, there is a simple proxy that will work just as well as a firm grasp of the technical and business issues: "Figure out what the Baby Bells want (they will tell you) and then try to stop them." | |
 sporkmedrop the crantini and move it, sisterPremium,MVM
join:2000-07-01
Morristown, NJ
 ·Optimum Online
| reply to Minister
said by Minister:
They don't care about competition with CLECs, many of them simply want service, and aren't moved by the arguments of critics, much of which center around the competition of tomorrow.
Thing is, they are asking for full deregulation of the broadband service; so there are no price protections, nothing saying they *must* roll out to X% of customers... What incentive is there for them to actually do what they're saying? What incentive for them to not charge $200 for ADSL in areas not served by cable? | |
| said by sporkme:
said by Minister:
They don't care about competition with CLECs, many of them simply want service, and aren't moved by the arguments of critics, much of which center around the competition of tomorrow.
Thing is, they are asking for full deregulation of the broadband service; so there are no price protections, nothing saying they *must* roll out to X% of customers... What incentive is there for them to actually do what they're saying? What incentive for them to not charge $200 for ADSL in areas not served by cable?
Well, market forces still would control the pricing aspects you mentioned. Would you say that a town that has 1 bar/tavern in the town and there isn't another town for 50 miles in any direction would have to regulate the prices for drinks there?
I don't see that happening, and I don't see taverns in tiny towns serving $400 glasses of beer either. I am wondering what makes you think that the ILEC would consider charging $200 for DSL in towns without cable and $30 in towns WITH cable?
If the price is too high, people just won't buy it. If people aren't buying the product, then it isn't profitable. Competition isn't the only form of market conditions controlling price and quality. Companies will offer products at a price and a quality that will sustain the most profit with the most customers. If that means lowering price and increasing quality, then that is what is required to keep the company in business and making the most money.
Boogie | |
| Why I don't trust you Never trust someone who blatantly makes obtuse comparisons...
It's pretty obvious that you can't charge $400 dollars for a beer, even if you were the only bar in to. Many people will simply stop drinking, because alcohol isn't thought as a necessity. This is clearly explained with the supply/demand equilibrium.
People WILL buy something, EVEN if the price is too high, EVEN if they are clearly being extorted, IF... IF... they actually do need it, OR if they think they need it.
Here's a GREAT example of this (something people need).
Ontario "Deregulated" their electricity utilities. Price SKYROCKETED so much, that electricity bills from $400 - $800 US were common.
I'm not claiming that Telco's could extort THAT much money, but because there are many people who believe they need broadband, they could probably extort a $100/month.
An yes, broadband providers have ALREADY started charging $90 in one town, and $45 in another. | |
| quote:
It's pretty obvious that you can't charge $400 dollars for a beer, even if you were the only bar in to. Many people will simply stop drinking, because alcohol isn't thought as a necessity. This is clearly explained with the supply/demand equilibrium
I seriously doubt that we will see consumers in ANY market looking at broadband internet as a necessity worth paying $200 per month for (anytime in the near or even distant future). Honestly, we are just ending having trouble getting people to start using DIAL-UP internet (as a society). Despite the claims of some on this website, broadband is available to roughly 80-90% of the country (population-wise, not location-wise). Only 10-15% of the population is actually taking advantage of it as we speak. There is MUCH more growth to go in this industry before it becomes CLOSE to a necessity worth gouging for.
Those that claim to "need" this product aren't using it for residential service- it's business usage- online gaming and P2P services aren't a necessity in a household any more than requiring a household to have a Playstation 2 or a $3000 home theater with an HDTV.
quote:
I'm not claiming that Telco's could extort THAT much money, but because there are many people who believe they need broadband, they could probably extort a $100/month.
An yes, broadband providers have ALREADY started charging $90 in one town, and $45 in another.
Which providers are you speaking of that offer the same product for $100 in one market and $45 in another?
If it is ANY provider other than a Bell Operating Company, how are we worried that the Bells will "gain a monopoly" and then "extort the consumer" when it isn't the Bells doing that already in non-monopoly markets- but other companies?
Boogie | |
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