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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: WTC who wrote (2966)	2/26/1999 12:56:00 PM
From: Doughboy	Read Replies (2) \| Respond to of 12823

WTC: Excellent discourse on the universal service issues. I only write to add that I don't feel any "sympathy" for the ILECs. They not only recoup their money for providing universal service, they make a vast majority of profit off it. And that is because they subsidize the lifeline and below-cost services by charging exhorbitant rates to the typical customer. You'll note that in most urban and suburban areas, we still get charged $100 for hookup of service even though it costs the ILEC maybe a few pennies to restore dialtone. Sure, they also have the atyical cases where they actually have to come out and work on the NID on your house or where they actually have to lay new wires out to a remote cabin, but I have no doubt that ILECs net a profit for these activities. Also, ILECs use the "universal service" argument to justify numerous other layers of subsidies that they have built into their rates. Ever wonder why it costs more to call local long distance (Charlotte to Raleigh) than it does to call from NY to CA? Or why is it that ILECs get a 30% kickback for every long distance telephone call? The FCC is only beginning to peel away some of these subsidies, and the ILECs are screaming bloody murder. I only hope the FCC doesn't lose the courage to continue to force ILECs into the competitive age. Doughboy.