Proposed $.10 per Minute Internet Charge Message Board

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Non-Tech : Proposed $.10 per Minute Internet Charge

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To: Tom Simpson who wrote (95)	2/11/1997 6:00:00 PM
From: yard_man	of 112

Tom, I'm no expert, although I have testified as an expert witness <g>. What little I know I pick up from co-workers. My responsibilities have to do with the regulation of electric, gas and (increasingly) water utilities. Telcom is really a different world from these. Coworkers in my office have occasionally asked me for help or opinions related to how cost studies are put together by the various parties. There has been a lot of attention to what access really costs since the federal telcom legislation passed which requires some unbundling. Typically, what the RBOC's like to argue -- our favorite Southwestern Bell, especially, is that the local loop costs are being subsidized by other services. Of course, it's easy for them to that say that since they use residual pricing in their models. I've always thought that some of those local loop costs are rightly defrayed by what the RBOC's get for access. My local connection generates value for the RBOC because it "attracts" long distance. This is probably a simplistic view, but it makes sense to me. For the cost of the local loop it makes little difference whether you use your phone for data xfer or POTS. Its the additional load as you mentioned at the switches. ISP's should pay for access, but they probably won't any time soon because of the politial situation -- at least that's what I'm hearing in my office. I don't know how big of an impact this would have on ISP's (surely it wouldn't be the major component of your monthly bill if it were cost-based). They would probably just pass it through to customers. I'm amazed at how much interest this topic has generated given the political unliklihood of its occurence. I may relay your questions to someone more knowledgable. Barry

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