  asdfdfdf
@xtraport.net
| reply to rachelsfx Re: One Question:
"... why should I be forced to line share my DSL at rates that aren't profitable?" later you say " Even if I made 10% profit on the aisle, why still would I not say get lost and build your own store?"
Clearly the question of whether it is profitable is not of any real importance to you. Even if it is profitable it won't affect your attitude. Nevertheless :
Keep in mind while rereading this that there is no reason to believe that dsl is not profitable for the bells.
" In the past, we used to buy wholesale access for about $44, when retail was $40 - that was really bad. Now, there's a tiny margin on most products, a couple percentage points - but the 6.0/768 product is actually upside-down today.
BBR: Speaking of aggressive intro offers; your reaction to AT&T's new 6Mbps 12 month deal for $30?
DJ: Our costs for this today are about $40 in payments to SBC-ASI, so there's no way to match this retail price point, particularly after you consider the cost of IP transport, support staff, general overhead, etc. I'm hoping to negotiate a lower wholesale cost."
It's difficult to believe that there is no profit when their own retail price is below wholesale price. I don't believe that their dsl service is a loss leader, so if they are able to make money on retail they are making money on wholesale. |