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 mags2 Agent Provocateur
join:2001-07-19 SoCal
| Re: Deregulation - Good or Bad? Sounds like both.
said by Nightfall: Maybe we should just bite the bullet and deregulate...
Biting the bullet and deregulate is what got California in dire straits with the power supplier pirates. You don't just hop into dereg w/o considering all of the implications and let it work itself out later. Can you even imagine the broadband landscape if dereg were to kick in and take a bite out of the industry a la the electricity debacle last year on the west coast?? The mind fairly boggles. In my mind at least, dereg of anything is bad for consumers. -- The best defense against logic is ignorance. | |
|  |  |  |  |  |   its me
@bls.com
| Re: Deregulation - Good or Bad? Sounds like both. As usual, the truth lies somewhere in the middle...to deregulate or re- (or stay) regulated....
I see from anecdotal experiences in GA (natural gas, local and long distance, water services) that *in general* regulation is preferable for consumer interests when the industry is historically regulated or a utility (like power, water, etc.)
As in the case of Russia when it changed abruptly from a Communist to a Capitalist economy, the barons of previously regulated industry tend to not know when to control themselves and plunder the company coffers or drastically reduce service. They just don't know how to act in a free-market environment.
With industries that are non-essential, like cars, clothes, electronics, etc, market pressure seems to drive choice. If Calvin Klein is too expensive, just buy Nautica, for example. The barons of these industries know from experience the value of a customer, and also have a greater tendency toward customer service.
The big question, is of course, "Is broadband a utility or a consumer service?" | |
|  |  |  |  keefeo
join:2002-06-12 West Bend, WI
| Re: Deregulation - Good or Bad? Sounds like both.
I'm an OSP Engineer for an ILEC and have to deal with these deregulation rules every day. I feel there can be advantages but the government needs to relieve the regulatory fees the ILECs have to pay. The government want what they call "parity". Then they should give every company the right to charge what they want for there services and leave it up to the consumer to choose. If they want competition then why do the CLECs automatically get the right to offer services like Long Distance and the ILECs have to jump thru a million hoops just to have the right to apply for it and ussually get denied. The CLECs don't have to pay regulatory fees to the government while the ILECs do. Plus the ILECs are spending there capitol dollars to place the fiber and copper infrastructor knowing that the CLECs will be coming behind them and utilizing them. In Chicago the cost that a CLEC has to pay an ILEC is just over 2 dollars. So if you spend $50,000 to facilitate a building and you only make 2 dollars per pair it doesn't really make it worth the ILECs time to do it.
To get to the bottom line I feel that deregulation can help consumers with costs but only if the government will let it. Let every company in the telecommunications business play on the same field. Let a company offer what ever type of service it would like to offer. Remove the regulatory fees that the ILECs have to pay. If you what competition then open the doors to everyone. By doing that it will bring newer technology to the customers because it will be worth while to create the next best thing.
One thing most people don't realize is that a CLEC has every right to place there own facilities to serve there customers but almost all don't. The reason they don't is because the payback is very small and then they must let other companies have access to it. So now they are in the ILECs shoes. Why not let the existing ILEC place the facilities for them and just utilize it when they are finished. If you sold cars wouldn't you rather buy cars from a manufacture who was forced to sell them to you for less than it costs to build it. Your profits will be greater but the consumer will suffer because quality and future technology will probably fail.
Thank You - from the inside - | |
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