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lesopp
join:2001-06-27
Land O Lakes, FL
| reply to lvas
Re: understand what your asking for folks.
1. Over building - Consider this, if the CLECs that laid all the fiber had reasonable and inexpensive access to business and residential customers we would all be paying a lot less for broadband. Many of the CLECs did build their own networks but access to the customer was hampered at every turn in very creative ways.
2. PUCs set the wholesale rate - In Florida, Bell South and Verizon have different wholesale rates. I looked up the Verizon tariffs, a reseller pays the same as a CLEC that colo's their equipment. I submit the the state commissions merely rubber stamp the tariff filings of the ILECs.
3. Resellers & CLECs - Some of both are still in business, so they must be doing something right. Therefore the business model is not flawed. In fact the RBOCs are subject to the same model and pricing for broadband, that is to say the DSL business is separate and pays the same for local loop access and back-haul. Didn't Verizon in the last several quarters report record profits with respect to DSL? | |
boogie74
join:2001-06-19
Neenah, WI
clubs:
| said by lesopp:
1. Over building - Consider this, if the CLECs that laid all the fiber had reasonable and inexpensive access to business and residential customers we would all be paying a lot less for broadband. Many of the CLECs did build their own networks but access to the customer was hampered at every turn in very creative ways.
Business competition is beyond thriving- over 30% of business customers have service with someone other than an ILEC. Residential is where the competition is lacking- that brings the nationwide average down in half to 15%. This is due to a business decision by CLEC's- not due to ILEC intervention.
quote:
3. Resellers & CLECs - Some of both are still in business, so they must be doing something right. Therefore the business model is not flawed. In fact the RBOCs are subject to the same model and pricing for broadband, that is to say the DSL business is separate and pays the same for local loop access and back-haul. Didn't Verizon in the last several quarters report record profits with respect to DSL?
Actually, all ILEC's posted record subscribership of DSL- not record profits. All ILEC's have posted continually lower diluted EPS estimates (Earnings per Share) for the past 3 consecutive quarters.
The fact that some CLEC's went under and others are thriving actually PROVES that those that went under had poor business models. If it were due to ILEC misbehavior, ALL CLEC's would have gone under- not just some of them. Not all CLEC's are had/have bad business models- just those that went out of business. Many CLEC's went under because they targeted customers that never pay any bills with advertising like "Did [insert ILEC name] disconnect you for non-payment?" or "Did [insert ILEC name] ask for a large deposit?" and "No deposits, no credit checks, no need for ID." They might as well have said, "No need to pay us, we'll just give you service."
Other companies went under because they expanded too quickly. Many went under because they relied on reciprocal compensation- making more money from ILEC's than from their customers.
I'm not saying that there isn't some sort of attempt (or overattempt) to control the flow of competition. Hell, if you were a business ordered to sell wholesale your investments, you'd try to follow the exact letter of the law too! The law was written to be followed exactly as it was written- not to be overdone by people who want to over-achieve on following it. Otherwise, if you felt everyone should follow the spirit of what the law was "supposed to mean," you'd be driving 10 miles per hour in school zones- not 20-25 (or faster). You would slow down to 30 MPH in construction zones for safety. You would NEVER walk across the street anywhere but at a corner and you would not walk on green lights with flashing "Don't Walk" signs.
When they say, "Open the markets to competition" they don't mean, "make sure that every one of your competitors is successful in business."
Boogie | |
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