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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (14353)3/24/2006 3:34:43 PM
From: Frank A. Coluccio  Respond to of 46821
 
I'll leave Whitacre tiering alone for a moment and simply state that it's consistent with telco mentality to assign premiums anywhere a plausible opening to do so can be found. For example, as one of the legal minds on another forum I visit noted earlier today, prior to AT&T's divestiture it attempted to increase the usage pricing above standard voice pricing for fax services and applications using acoustic couplers.

Nothing materially was different on the telco side of the equation when a fax machine was used vs. a telephone, yet they saw fit to bill a higher rate for the fax. Presumably, the chuztpah-ridden logic behind this was that the perceived value of a fax connection, which yielded a hard copy "message" in the end, was higher than the equivalent duration of a voice connection, therefore giving them the right to charge more for fax than for voice.

Telcos are like most businesses, keen to strike a higher profit whenever they can, but often unmoved by the prospect of losing face, and often acting in ways that are anathema to others who provide public services under government sanctions and protections.