Interesting People mailing list archives
Re: Two msgs California Declares Free Market Broken, Recommends Price Controls For Phone Services
From: David Farber <dave () farber net>
Date: Sat, 16 Aug 2008 18:01:01 -0400
Begin forwarded message: From: Brett Glass <brett () lariat net> Date: August 16, 2008 2:53:36 PM EDT To: dave () farber net, "ip" <ip () v2 listbox com>Subject: Re: [IP] Re: California Declares Free Market Broken, Recommends Price Controls For Phone Services
At 12:23 PM 8/16/2008, Lauren Weinstein wrote:
Deregulation of phone service pricing in California by the CPUC was, as I recall, specifically predicated on the telcos' promises that price increases would not get out of hand.
At the time, telephone companies could not have predicted that the Internet would make it so easy to bypass them, nor that cellular phones would become so popular and common. I doubt that they actually "promised" anything; however, it is fairly likely that they pointed to the economic climate at the time, when dial-up modems were common and the number of land lines was going UP, not down. Today, the telcos really do have a serious problem: their overhead is growing due to increased commodity, energy, and labor costs but far fewer phone lines are in use. And because -- in their passion for vertical integration -- they decline to allow competitors to rent those lines at any reasonable price, they are actually foregoing potential rents. Ironically, it appears that California appears all too eager to regulate at the retail level, but not at the wholesale level -- even thoughenabling competitive providers would surely enable aggressive competition
and thereby benefit consumers.
Part of the reason that the ISP access situation in the U.S. is so limited in a practical sense for most consumers is that we allowed all manner of deployment and other ISP promises in that sector to be ignored by those ISPs as well.
Please give examples. Our ISP has never once failed to make good on a promise to deploy service. --Brett Glass Begin forwarded message: From: Lauren Weinstein <lauren () vortex com> Date: August 16, 2008 3:07:36 PM EDT To: Brett Glass <brett () lariat net> Cc: dave () farber net, lauren () vortex comSubject: Re: [IP] Re: California Declares Free Market Broken, Recommends Price Controls For Phone Services
Brett, You don't know *what* you're talking about. The specific deregulation (lifting of price controls heavily lobbied by the telcos here in California) under discussion dates from around 2006, not many years ago. All of the factors involved were very clear to the telcos at the time they pushed this through. Dave already mentioned how Verizon broke their broadband promise in Pennsylvania, there are similar examples of deployment promises from telcos that went up in smoke scattered all over. I'm glad to hear that you've never broken a deployment commitment. But as I've said many times, your WISP isn't the problem, and it's also not representative of the larger ISP industry. --Lauren-- Lauren Weinstein lauren () vortex com or lauren () pfir org Tel: +1 (818) 225-2800 http://www.pfir.org/lauren Co-Founder, PFIR - People For Internet Responsibility - http://www.pfir.org Co-Founder, NNSquad - Network Neutrality Squad - http://www.nnsquad.org Founder, PRIVACY Forum - http://www.vortex.com Member, ACM Committee on Computers and Public Policy Lauren's Blog: http://lauren.vortex.com ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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- Re: Two msgs California Declares Free Market Broken, Recommends Price Controls For Phone Services David Farber (Aug 16)