WCOM Message Board - Msg: 17565738

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Technology Stocks : WCOM

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To: telecomguy who wrote (10495)	6/6/2002 12:35:38 PM
From: Oeconomicus	Read Replies (1) of 11568

It's no different than selling competitive local service, except that they then bundle fixed fee/unlimited use long distance into the product. As for heavy users being the only takers, resulting in losses, I doubt it. First, many low and moderate volume callers will take it simply because unlimited anything at a modest fixed price seems like a bargain - some probably thinking "hey, I can call Mom more and not worry about the phone bill." Second, what's the marginal cost of a LD minute? I doubt it's much - probably barely measurable. I'd bet there's more money in how many customers you have than in how many more minutes you can bill a given one. Third, I'd expect that fixed monthly fees would also result in better collections. Didn't AOL say the same thing in resisting fixed fee/unlimited use Internet access pricing a few years back? BTW, what makes you think $50 won't cover the payments to the RBOCs (ILECs)? I pay BellSouth $17.45 for a residential line. I doubt the Telecom Act would allow an ILEC to charge a CLEC three times what they charge me. Are you really a "telecomguy" or just another naysayer?

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