Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (41329)	12/29/1998 1:20:00 PM
From: yard_man	Read Replies (2) \| Respond to of 132070

CB, So much wrong in your post I don't know where to begin ... First. I don't work for a utility. I am a regulator. Second. Your ideas about phone service are wrong on at least a couple of fundamental bases. when you talk about rural systems -- there obviously is more investment in copper per user -- that much is true, but your idea that local politicians somehow squeeze telco's into providing service below cost in these areas is laughable. Service is being provided to everybody way above cost. Telco's are simply swimming in money! Now as to whether rural consumers should pay more -- telcos would just like to look at the wires in the ground and facilities in place per customer per mile. Sounds nice, except for the fact that communication isn't one-way. Users of those services in the city are provided a very real benefit by that equipment as well in that they can reach those people and sell them widgets or what not. A similar argument is made about the cost of the local loop -- they want to recover as much of these costs as they can in an up front fixed charge. They've argued that that's what competition should result in. It's BS. Do toll cos benefit from the fact that I'm connected to the system? What people pay for phone service has been political almost from day one. Whenever you take something that is regarded as an essential service and regulate it all kinds of distortions are introduced. You can't roll back the clock and say how would have things developed if the industry weren't regulated. The politcal legal machinery is the primary force behind what you pay for telco services, even now. I don't work in the telco area, but I have no clue as how to introduce serious competition in the area. One problem is disclosure -- who can compare one plan with another right now -- fed and state regulators failed miserably to require this. Perhaps the internet is the answer. I was told that there are locations now which will do comparisons for you -- thanks for reminding me -- I'm going to check them out. It is time for me to do the shuffle again as my recent introductory plan is running out of time ...