[comp.misc] Houston bbs's vs SW Bell - more

judy@moray.UUCP (Judy Scheltema) (10/25/88)

The following is the text of an article that appeared in the Houston Post
editorial pages on October 22, 1988. The reporter who wrote this will be
attending the meeting scheduled for October 27, 1988 at the Grand Hotel
at noon to cover further developments. Approximately 150 sysops and users
have RSVP'ed as of this writing, so it should be a good turnout and just
perhaps get Ma Bell's attention. If anyone can make this meeting who has
not signed up, please contact Sandy at 713-961-7800 to confirm your presence.
We should have representatives from both newspapers and a couple of 
tv stations there to spread the word on what the phone company is attempting
to do. 

P. S. Sorry I had to change groups. I originally posted the first articles
with a distribution of us in comp.dcom.telecom, but discovered it was
moderated and wanted to get this information out on the net promptly.


-------------------------------------------------------------------------


       CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
                                by
                    Thomas J.L. Bronsberg-Adas

     Recently, Southwestern Bell began raising the telephone rates 
of computer bulletin board systems (BBSs).  The rates are being 
raised from $13.35 (the residential rate) to $32.85 (the 
commercial/business rate).  This increase is an increase of over 
240%!  I feel (as do most computer users) that this increase in 
not warranted, nor justified. 

     Before I go into those details, allow me to explain what a 
BBS is... 

     A Bulletin Board System (BBS) is a program that runs on a 
computer and allows people to leave messages and read messages 
left by others.  The use of this program involves the utilization 
of a computer system, a modem (a device used for communication 
between two computers over the phone lines) and a separate phone 
line (so as to not tie up the family's line).  The person that 
owns the computer and operates the BBS is called a SYStem OPerator 
(SYSOP). 

     In the Houston area, it is estimated there are upwards of 
1,000 BBSs.  The sysops of many of these boards are high school
and college students.  The vast majority of them are just computer 
hobbyists;  working their regular jobs and coming home to enjoy a 
hobby. 

     The cost of setting up one of these BBSs is not a small one.
The average cost of computer, hard disk drives, software programs 
and modem can run into the thousands of dollars.  To a student, 
that may mean not getting a car, or even a stereo.  To a working
sysop, it may mean that the family will not be taking a vacation 
for a while. 

     Also, to the students (especially the high school students), 
running a BBS is a learning experience.  By running the BBS, the 
student learns responsibility, communication skills and inter-
personal relationships (in the sociological sense).  It also gives 
the students a purpose to their life, rather than roaming the 
streets and getting involved with drugs and/or 
violence.  Southwestern Bell's attempt to charge BBSs commercial 
rates will just add another brick in the wall that sways teens to 
drugs. 

     According to my dictionary, commercial means..."made, done,
or operating primarily for profit."  Of all of the boards that I 
frequent, not one has been operated for profit.  In reality, they
are all running at a loss.  After all, the sysops have paid for 
all of their computer equipment and are also paying for two phone 
lines into their homes (or their parents are).  How can this be 
construed as being a commercial venture? 

     Southwestern Bell charges churches, governments, charities 
and other non-profit organizations commercial rates for their 
phone service,  but that is dictated by state regulations.  These
ventures also receive monies from various sources, such as taxes,
donations, solicitations and grants.  So, they can afford to pay 
the commercial rates. 

     Computer BBSs are not and have never been mentioned in these 
regulations.  But, Southwestern Bell is not stopping at this.  
They are also charging amateur "ham" radio operators the 
commercial rate, if these 'hams' patch radio messages to the 
telephone line. 

     Amateur radio operators are the ones that are usually the 
only link with the world for areas suffering disasters, such as
earthquakes and hurricanes.  They also help distant missionaries 
in remote locations that do not have any phone services (such as 
the South American jungles).  The FCC regulations strictly forbids 
any commercial traffic over the frequencies alloted amateur 
operators.  How can Southwestern Bell claim something is 
commercial, when the federal government strictly bans such 
activity?  Is Southwestern Bell's power greater than the federal 
government? 

     BBSs and amateur radio operators are not covered by the 
regulations that apply to commercial rates.  Also, even if they 
were, Southwestern Bell did not allow the sysops and "hams" to 
file comments with the PUC before putting this action into 
effect. 

     If the Public Utilities Commission allows Southwestern Bell 
to charge these unwarranted rates, they will be giving a free hand 
to 'baby' Bell to change their rates anytime they want, for any 
reason they want. 

     By strange coincidence, Nynex (another of the baby Bells) is 
about to introduce a for-profit BBS.  Could it be that this 
unwarranted rate classification is an attempt to squash any 
possible competition?  After all, would you rather contact a free 
BBS or one that charges you by the minute? 

     I believe that this may be the beginnings of a conspiracy by 
the Bell systems around the country to destroy an established 
nation-wide hobby, so that they may introduce their own commercial 
venture into this field. 

     If they are not stopped now, they may next charge you the 
commercial rate for having an answering machine in your home.  Or 
even charging you the commercial rate because you MAY call a 
business from your house. 

Copyright 1988 HEART ATTACK PRODUCTS
10901 Meadowglen 142
Houston, TX  77042
(713) 785-3487

-- 
Judy Scheltema                |                     uunet!nuchat!moray!judy
Houston, Texas                |                 bellcore!texbell!moray!judy

russ@uokmax.UUCP (Russ "Random" Smith) (10/26/88)

[In <4252@moray.UUCP>, judy@moray.UUCP said:]
->The following is the text of an article that appeared in the Houston Post
->editorial pages on October 22, 1988. The reporter who wrote this will be
->attending the meeting scheduled for October 27, 1988 at the Grand Hotel
->at noon to cover further developments. Approximately 150 sysops and users
->have RSVP'ed as of this writing, so it should be a good turnout and just
->perhaps get Ma Bell's attention. If anyone can make this meeting who has
->not signed up, please contact Sandy at 713-961-7800 to confirm your presence.
->We should have representatives from both newspapers and a couple of 
->tv stations there to spread the word on what the phone company is attempting
->to do. 
->
->P. S. Sorry I had to change groups. I originally posted the first articles
->with a distribution of us in comp.dcom.telecom, but discovered it was
->moderated and wanted to get this information out on the net promptly.
->
->
->-------------------------------------------------------------------------
->
->
->       CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
->                                by
->                    Thomas J.L. Bronsberg-Adas
->
->     Recently, Southwestern Bell began raising the telephone rates 
->of computer bulletin board systems (BBSs).  The rates are being 
->raised from $13.35 (the residential rate) to $32.85 (the 
->commercial/business rate).  This increase is an increase of over 
->240%!  I feel (as do most computer users) that this increase in 
->not warranted, nor justified. 
->
Something similar to this happened in either '82 or '83 in the Oklahoma
City area.  A young (well, at the time) fellow named Robert Braver built up
a suit against Bell.  Bell eventually gave up (hurrah for the good guys!)

Hope this one turns out the same way.

                                  All my friends and I are crazy.
                                  That's the only thing that keeps us
                                  sane.
-- 
Russ "Random" Smith
!texsun!uokmax!russ ___________________________________ .-------  .-----------
GEnie :  R.SMITH101 |"If Reagan is the answer, it must| |--       `---.
Oklahoma University |have been a VERY silly question."| `---CLIPSE----'OFTWARE

elg@killer.DALLAS.TX.US (Eric Green) (10/26/88)

in article <4252@moray.UUCP>, judy@moray.UUCP (Judy Scheltema) says:

$ The following is the text of an article that appeared in the Houston Post
$ editorial pages on October 22, 1988. The reporter who wrote this will be
$ attending the meeting scheduled for October 27, 1988 at the Grand Hotel
$ at noon to cover further developments. Approximately 150 sysops and users
$ have RSVP'ed as of this writing, so it should be a good turnout and just
$ perhaps get Ma Bell's attention. If anyone can make this meeting who has
$ not signed up, please contact Sandy at 713-961-7800 to confirm your presence.
$ We should have representatives from both newspapers and a couple of 
$ tv stations there to spread the word on what the phone company is attempting
$ to do. 

Unfortunately, I cannot make it out to Houston for the 27th (a
Thursday), and I doubt the Texas PUC would care what a Louisiana
citizen said. However, if the Houston sysops decide to pursue legal
action in this case, please post... let's see if we can get a legal
fund together from USENET and BBS systems. I suspect that we (the
sysops) may be able to get together quite a booty indeed... especially
if current "free" BBS's band together to ask a $5 one-time fee of
their users, for legal defense purposes.


$ Copyright 1988 HEART ATTACK PRODUCTS
$ 10901 Meadowglen 142
$ Houston, TX  77042
$ (713) 785-3487

Let us know more as it happens. I remember that the phone company in
Oklahoma tried the same thing and got shouted down by their public
utilities commission... and I live in constant terror that South
Central Bell will try the same thing in Louisiana, where there is no
large mass of sysops to raise bloody hell.

--
Eric Lee Green    ..!{ames,decwrl,mit-eddie,osu-cis}!killer!elg
          Snail Mail P.O. Box 92191 Lafayette, LA 70509              
It's understandable that Mike Dukakis thinks he can walk on water.
He's used to walking on Boston harbor.

halle@homxc.UUCP (J.HALLE) (10/26/88)

In article <1933@uokmax.UUCP>, russ@uokmax.UUCP (Russ "Random" Smith) writes:
> ->       CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
< ->                                by
> ->                    Thomas J.L. Bronsberg-Adas
< ->
> ->     Recently, Southwestern Bell began raising the telephone rates 
< ->of computer bulletin board systems (BBSs).  The rates are being 
> ->raised from $13.35 (the residential rate) to $32.85 (the 
< ->commercial/business rate).  This increase is an increase of over 
> ->240%!  I feel (as do most computer users) that this increase in 
< ->not warranted, nor justified. 
> ->
< Something similar to this happened in either '82 or '83 in the Oklahoma
> City area.  A young (well, at the time) fellow named Robert Braver built up
< a suit against Bell.  Bell eventually gave up (hurrah for the good guys!)
> 
< Hope this one turns out the same way.

And I hope it does not.  SWBell is really only doing what it must.  Why do you
think they charge more for "commercial" lines than residential?  Not because
of ability to pay, but because those lines cost more to provide than
residential lines.  The cost of providing a line is significantly affected by
the amount of use the line gets, both incoming and outgoing.  Business line
usage is typically several times more than residential lines (based on
minutes of use during the peak hour, e.g.).  Of course there are exceptions
here and there, but by and large the business lines are much more costly to
the phone company.  As far as pattern of use, BBSs are much closer to business
use than to residential use.

Let me offer an alternative.  How about if all lines are charged based on the
amount of time the line is busy, i.e. you get billed during incoming and
outgoing calls, but not when the phone is on hook.  How would you feel then?
Now residential rates will probably not be affected much, most business lines
would stay the same or drop slightly, and BBS lines would skyrocket.  Also,
any lines used at home with a modem would probably go up.  Is that really what
you want?  That's the way you should be charged for the lines.

Of course you could let the BBSs be charged residential rates, but then ALL
residential rates would have to be raised.  (The phone company is not a
government agency; it too has to make a profit.  And it is not allowed to make
a very big one.)  What, don't raise residential rates?  Then raise business
rates.  But then the businesses raise their prices, costing you more, and they
find a cheaper way to have phone service by bypassing the phone company.  Now
the phone company has a smaller base, so all rates again go up, only now
more so.

I could go on, but I've made my point.  I see nothing unfair about what the
phone company is trying to do, and in fact they are giving the BBSs a break
by not doing what they really ought to do if they were able.

(Side issue.  The reporter who wrote the original article cannot be called a
reporter in any real sense of the word.  He editorialized unmercifully, and
made a number of unfounded and totally off-the-wall insinuations.  Yellow
journalism at its best.)

J. C. Halle

steve@nuchat.UUCP (Steve Nuchia) (10/26/88)

From article <5898@killer.DALLAS.TX.US>, elg@killer.DALLAS.TX.US (Eric Green):
> sysops) may be able to get together quite a booty indeed... especially
> if current "free" BBS's band together to ask a $5 one-time fee of
> their users, for legal defense purposes.

From what we've seen it would be a mistake for a free board to jeapordize
its hobby status by asking for *anything*, and especially by accepting
money, even for this purpose.

It would not be inappropriate to suggest that sysops and users send
donations (check, no cash) to COSUARD directly.  As the following
press release indicates, we *may* have won this battle, but there
is a long war ahead.  We have already expended money for room reservation,
printing costs, and filing fees.  We intend to organize on an ongoing
basis to negotiate with carriers and lobby for the interests of data
communications hobbiest.  Donations are still needed and will be put
to good use.

We do not yet have a dedicated postal address, send it to
	COSUARD
	C/O Steve Nuchia
	POB 890952
	Houston, Tx, 77289
Make the check payable to COSUARD, not me.

-----------------------------------------------------------------


FOR IMMEDIATE RELEASE                              October 26, 1988

From:COSUARD(Coalition of Sysops and Users Against Rate Discrimination)
Contacts: Susan E. King, Sysop, Kingdom Productions BBS Voice 526-2331
                                                        BBS   630-0553
            Reginald Hirsch, Attorney, Voice 961-7800
RE: Southwestern Bell and Re-interpretaion of Existing Tariff

An informal letter was received by FAX yesterday at the office of
Reginald Hirsch from Southwestern Bell. The letter from Spokesman
Ken Brasel indicated a reversal of Southwestern Bell's
re-classification policy of Houston area  BBS's (Bulletin Board
Systems).

Mr. Brasel stated "Southwestern Bell as of this date has stopped
converting customers who operate computer bulletin boards from
the residential to the business rate. Further, any non-commercial
bulletin board operators who have been converted to the business
rate will be contacted by Southwestern Bell and changed back to
the residential rate at no charge. We will make a contact with
the Public Utility Commission staff in Austin to inform it of
this change."

As of 4:30 p.m. yesterday afternoon in a phone conversation with
the PUC, no written comfirmation had yet been received.

Notwithstanding, COSUARD through its legal representative,
Reginald Hirsch, has filed a formal written complaint with the PUC.

The Thursday meeting, October 27, 1988 at 12:00 Noon at the
Grand Hotel,2525 W. Loop South will take place. Although
Southwestern Bell has indicated a policy reversal at this time
they do intend to apply business rates to certain BBS's.

A formalized resolution must be submitted to the PUC and
definitions such as "non-commercial" will need clarification.
COSUARD will make a formal statement and policy direction
at this meeting.

At the request of Southwestern Bell a meeting has been set
for Friday,October 29, 1988 at 3:00 p.m.

The pressure that has been exerted on Southwestern Bell over
the last several weeks on its "re-interpretation" of the current
tariff has drawn widespread attention of the Sysop and User
community throughout the country. This is only indicative of the
interest for preservation of a hobby that has a profound
network not only throughout this country but throughout the world.

Other contacts for information:
     Merrilyn Vaughn - OPUS/FIDO Net 106 Coordinator  686-2730
     Justin Marquez -  OPUS/FIDO Region 19 Coordinator 987-3500
     Ed Hopper -       PCBOARD Sysop 968-5267
     
                                -


--
Judy Scheltema                |                     uunet!nuchat!moray!judy
Houston, Texas                |                 bellcore!texbell!moray!judy

-- 
Steve Nuchia	    | [...] but the machine would probably be allowed no mercy.
uunet!nuchat!steve  | In other words then, if a machine is expected to be
(713) 334 6720	    | infallible, it cannot be intelligent.  - Alan Turing, 1947

marty@homxc.UUCP (M.B.BRILLIANT) (10/26/88)

In article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:
> < -> ....
> > ->     Recently, Southwestern Bell began raising the telephone rates 
> < ->of computer bulletin board systems (BBSs)....
> ...
> ..... those lines cost more to provide than
> residential lines.  The cost of providing a line is significantly affected by
> the amount of use the line gets, both incoming and outgoing...

I disagree.  The usage cost of a BBS line is borne by the callers, and
the operator should not be charged for it.

The cost of the line itself is the cost of materials, installation, and
repairs.  That cost is not affected by usage.  All the cost of usage
has traditionally been paid by the caller.  On local calls, the local
telephone company incurs all the costs and receives all the revenue. 
In part, commercial users are charged more because they are presumed to
make more local calls within the local no-charge calling area.  On
interexchange calls, the long-distance carrier pays the local telephone
companies at each end for access.

BBS's probably receive a lot of local no-charge calls, but they should
not pay commercial rates for that.  The new wave of usage-sensitive
pricing will ultimately make the callers pay even for those local
calls, so if the BBS is charged for them the local company will be paid
twice.  And BBS's don't make a lot of local calls.

Other than that, commercial lines might be charged more than
residential lines based on presumed ability to pay.  That might be
arguable but should not be argued in this newsgroup.  At any rate, no
such presumption applies to a BBS run for fun.

						Marty
M. B. Brilliant		houdi!marty1, homxc!marty

Disclaimer: Opinions stated herein are mine unless and until my employer
	    explicitly claims them; then I lose all rights to them.

markz@ssc.UUCP (Mark Zenier) (10/27/88)

In article <4252@moray.UUCP>, judy@moray.UUCP (Judy Scheltema) writes:
| The following is the text of an article that appeared in the Houston Post
| editorial pages on October 22, 1988. 
| ...
| -------------------------------------------------------------------------
| 
| 
|        CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
|                                 by
|                     Thomas J.L. Bronsberg-Adas
| 
|      Recently, Southwestern Bell began raising the telephone rates 
| of computer bulletin board systems (BBSs).  The rates are being 
| raised from $13.35 (the residential rate) to $32.85 (the 
| commercial/business rate).  This increase is an increase of over 
| 240%!  I feel (as do most computer users) that this increase in 
| not warranted, nor justified. 
| 
| ...

The phone system isn't designed so everyone can use the phone all the
time.  If someone uses 240% of the expected usage of a limited resource, 
they should pay 240% of the normal rate.

|      The cost of setting up one of these BBSs is not a small one.
| The average cost of computer, hard disk drives, software programs 
| and modem can run into the thousands of dollars.  To a student, 
| that may mean not getting a car, or even a stereo.  To a working
| sysop, it may mean that the family will not be taking a vacation 
| for a while. 

Thats their choice.  But don't expect the rest of the rate payers to be
happy that someone has decided that their hobby will be tieing up the phone 
lines and that they should be subsidized by everyone else.

BBS owners should remember that just because they want to do it, it
doesn't mean its fair to the rest of the population. 

To be cynical about The Phone Company, the next step will be measured billing.

Mark Zenier	uunet!pilchuck!ssc!markz		
"He did decide, though, that with more time and a great deal of mental effort,
he could probably turn the activity into an acceptable perversion"-Mick Farren

russ@uokmax.UUCP (Russ "Random" Smith) (10/27/88)

[In <3940@homxc.UUCP>, halle@homxc.UUCP said:]
->In article <1933@uokmax.UUCP>, russ@uokmax.UUCP (Russ "Random" Smith) writes:
->> ->       CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
->< ->                                by
->> ->                    Thomas J.L. Bronsberg-Adas
->< ->
->> ->     Recently, Southwestern Bell began raising the telephone rates 
->< ->of computer bulletin board systems (BBSs).  The rates are being 
->> ->raised from $13.35 (the residential rate) to $32.85 (the 
->< ->commercial/business rate).  This increase is an increase of over 
->> ->240%!  I feel (as do most computer users) that this increase in 
->< ->not warranted, nor justified. 
->> ->
->< Something similar to this happened in either '82 or '83 in the Oklahoma
->> City area.  A young (well, at the time) fellow named Robert Braver built up
->< a suit against Bell.  Bell eventually gave up (hurrah for the good guys!)
->> 
->< Hope this one turns out the same way.
->
->And I hope it does not.  SWBell is really only doing what it must.  Why do you
->think they charge more for "commercial" lines than residential?  Not because
->of ability to pay, but because those lines cost more to provide than
->residential lines.  The cost of providing a line is significantly affected by
->the amount of use the line gets, both incoming and outgoing.  Business line
->usage is typically several times more than residential lines (based on
->minutes of use during the peak hour, e.g.).  Of course there are exceptions
->here and there, but by and large the business lines are much more costly to
->the phone company.  As far as pattern of use, BBSs are much closer to business
->use than to residential use.
->
->Let me offer an alternative.  How about if all lines are charged based on the
->amount of time the line is busy, i.e. you get billed during incoming and
->outgoing calls, but not when the phone is on hook.  How would you feel then?
->Now residential rates will probably not be affected much, most business lines
->would stay the same or drop slightly, and BBS lines would skyrocket.  Also,
->any lines used at home with a modem would probably go up.  Is that really what
->you want?  That's the way you should be charged for the lines.
->
->
->J. C. Halle

However, I think you should realize -- that's NOT how they claim to do it!  A
business line is to charge people that make MONEY by using those phone lines.
I assure you, my BBS doesn't make a dime for me -- indeed, I lose the bucks
for the phone line.

Why charge it for a business when it's not?  Okay, if they're going to change
the whole definition of a business line, that's one thing -- but that's only
a fantasy that you've given us.  The truth us, they've defined BBS's as
obviously being businesses for profit using the phone lines -- and in most
cases, that's simply untrue.

Mind you, there are systems that are pay and make a profit.  More power to
Bell where those are concerned -- they are business; they should have
business lines.  But to tell me that *I* am a business?  I'd say not.

                                  I can't understand why a person will
                                  take a year or two to write a novel
                                  when he can easily buy one for a few
                                  dollars.  -- Fred Allen

                           	  Random J Nightfall
                                  Avatar of Chaos

-- 
Russ 'Random' Smith
!texsun!uokmax!russ __________________________________ .  .        .-----------
GEnie :  R.SMITH101 |If Reagan is the answer, it must| |  |        `---.
Oklahoma University |have been a VERY silly question.| `--'LTIMATUM----'OFTWARE

nessus@nsc.nsc.com (Kchula-Rrit) (10/27/88)

In article <3940@homxc.UUCP> halle@homxc.UUCP (J.HALLE) writes:
*In article <1933@uokmax.UUCP>, russ@uokmax.UUCP (Russ "Random" Smith) writes:
*> ->       CAN SOUTHWESTERN BELL TRULY JUSTIFY THIS RATE HIKE?
*< ->                                by
*> ->                    Thomas J.L. Bronsberg-Adas
*< ->
*> ->     Recently, Southwestern Bell began raising the telephone rates 
*< ->of computer bulletin board systems (BBSs).  The rates are being 
*> ->raised from $13.35 (the residential rate) to $32.85 (the 
*< ->commercial/business rate).  This increase is an increase of over 
*> ->240%!  I feel (as do most computer users) that this increase in 
*< ->not warranted, nor justified. 
*> ->
*< Something similar to this happened in either '82 or '83 in the Oklahoma
*> City area.  A young (well, at the time) fellow named Robert Braver built up
*< a suit against Bell.  Bell eventually gave up (hurrah for the good guys!)

*< Hope this one turns out the same way.

*And I hope it does not.  SWBell is really only doing what it must.  Why do you
*think they charge more for "commercial" lines than residential?  Not because
*of ability to pay, but because those lines cost more to provide than
*residential lines.  The cost of providing a line is significantly affected by
*the amount of use the line gets, both incoming and outgoing.  Business line
*usage is typically several times more than residential lines (based on
*minutes of use during the peak hour, e.g.).

     That's because most businesses use their phones during the day, with
very little to no use in the "off-peak" hours, when most residential lines
are relatively idle.  Most residential lines that I know of get more use in
the "off-peak" times when business lines tend to be idle.  I'm sure that
"ability to pay" enters into the equation somewhere, as well.

> Of course there are exceptions here and there, but by and large the busi-
>ness lines are much more costly to the phone company.  As far as pattern
>of use, BBSs are much closer to business use than to residential use.

     My USENET feed operates ONLY during the night-rate period(11pm-7am);
the primary reason I do this is co$t; I cannot afford to get an extra line
just for the modem.  It does not seem right to me that I should pay daytime
rates so I can use my modem at night.  My impression is that "business use"
implies an intention to make a profit from a particular activity; non-profit
organizations by their nature [in theory] have other reasons for their
existence.  I do not operate my USENET node to make a profit, it is one
of my "windows on the world"; as such it is very valuable to me.

*Let me offer an alternative.  How about if all lines are charged based on the
*amount of time the line is busy, i.e. you get billed during incoming and
*outgoing calls, but not when the phone is on hook.  How would you feel then?
*Now residential rates will probably not be affected much, most business lines
*would stay the same or drop slightly, and BBS lines would skyrocket.  Also,
*any lines used at home with a modem would probably go up.  Is that really what
*you want?  That's the way you should be charged for the lines.

     I find it interesting that your "alternative" is already what I have
implemented on my phone; it's called "measured-rate service"; I pay a
connect-charge followed by a per-minute charge, modified by a multi-
plication factor which takes into account the [roughly approximate]
time of day.  Fortunately, in my case, the connect is 4 cents followed
by 1 cent per minute of connect time; if these amounts were multiplied
by 2.4 (the business/residential differential mentioned above), I would
have to get off the net altogether.

*Of course you could let the BBSs be charged residential rates, but then
*ALL residential rates would have to be raised.  (The phone company is not
*a government agency; it too has to make a profit.  And it is not allowed
*to make a very big one.)

     Gosh, I stopped believing this when I gave up Santa Claus and the
Easter Bunny; pardon my cynicism but, in my observation, Ma Bell is non-
monopolistic in name only.  At least in [Northern] California, the Public
Utilities Commission seems to be a rubber-stamp(Yes-man, if you prefer)
to the utilities; it seems every month that some new rate-raise is
"allowed" by them.  Since they supply our power, water, and communications
they seem to have us by "the short hairs"; as a captive audience, we can't
just connect to a different electric utility for example.  Sort of like
"I don't like your rates, PG&E[power company], I'll connect my house to
Sacramento Municipal Power; pay no mind to the fact that I'm 100 miles
away, in the City of Livermore, and their are no wires strung.  We cannot
simply "vote with our feet" like we could with, say, a grocery store.
And I do consider living in a cave, gathering wood for heat,
an acceptable alternative.

* ...

*I could go on, but I've made my point.

I trust I have made mine.

*J. C. Halle

-- 
						Kchula-Rrit

"In challenging a kzin, a scream of rage is sufficient.
 You scream and you leap."

gl8f@bessel.acc.Virginia.EDU (Greg Lindahl) (10/28/88)

In article <3940@homxc.UUCP> halle@homxc.UUCP (J.HALLE) writes:
[ stuff deleted ]
>
>Of course you could let the BBSs be charged residential rates, but then ALL
>residential rates would have to be raised. [...]

by how much? 10 cents a month? 5? there are few bbses in this country... and
they provide a nice means of information exchange. there has already been one
governmental decision to discriminate in favor of computer communications for
this reason... the FCC decision to not to charge access fees for X25 services
and networks. why destroy/harm BBSing for the sake of MINIMAL economic
concerns.

years from now, when there are many more BBSes, your argument may be sound.
but for now, i suspect that the rate difference can be ignored.

----------
Greg Lindahl                                     internet:  gl8f@virginia.edu
University of Virginia Department of Astronomy     bitnet:  gl8f@virginia.bitnet
     "Doesn't Quayle know that the FBI handles domestic assassinations?"

mwwheatl@uokmax.UUCP (Mark W Wheatley) (10/28/88)

In article <1947@uokmax.UUCP> russ@uokmax.UUCP (Russ "Random" Smith) writes:
>[In <3940@homxc.UUCP>, halle@homxc.UUCP said:]
>->                   SWBell is really only doing what it must.  Why do you
>->think they charge more for "commercial" lines than residential?  Not because
>->of ability to pay, but because those lines cost more to provide than
>->residential lines.  The cost of providing a line is significantly affected by
>->the amount of use the line gets, both incoming and outgoing.
>
>However, I think you should realize -- that's NOT how they claim to do it!  A
>business line is to charge people that make MONEY by using those phone lines.
>I assure you, my BBS doesn't make a dime for me -- indeed, I lose the bucks
>for the phone line.
   
  I agree completely with Russ. The business line is charged more because
  it is used to make money. And as for a home phone not being used as much 
  as a business phone - HA! Do not teenagers tie up the phone for hours? If
  you want to charge based on use (other than local measured service which 
  charge all homes with residents ages 13 - 19 business rates because of
  the increased usage on the network from those locations. :-)  The phone
  system could care less what I transmit through it be it 2400 baud ASCII 
  or voice, or where I transmit it to. Like Russ said, I am NOT a business
  and WILL NOT pay more for a phone line just because a modem is connected
  to it. It is none of the phone company's business what I have hooked up
  to the lne unless it is causing problems with the network, in which case
  I'll disconnect it. Just my $ 0.02 worth.

                                           Mark Wheatley
                                           mwwheatl@uokmax.UUCP
                                           mwwheatl@uokmax.ecn.uoknor.edu

res@ihlpb.ATT.COM (Rich Strebendt) (10/28/88)

In article <3945@homxc.UUCP>, marty@homxc.UUCP (M.B.BRILLIANT) writes:
> In article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:
> > < -> ....
> > > ->     Recently, Southwestern Bell began raising the telephone rates 
> > < ->of computer bulletin board systems (BBSs)....
> > ...
> > ..... those lines cost more to provide than
> > residential lines.  The cost of providing a line is significantly affected by
> > the amount of use the line gets, both incoming and outgoing...
> 
> I disagree.  The usage cost of a BBS line is borne by the callers, and
> the operator should not be charged for it.
> 
> The cost of the line itself is the cost of materials, installation, and
> repairs.  That cost is not affected by usage.  All the cost of usage
> has traditionally been paid by the caller.

Not quite.  The customer premise cost (wire, installation, etc.) is
really not that great (on an annualized basis) compared to the cost in
the switching offices.  What you say may be true for the per-line
equipment, but is NOT true for the shared (common) equipment (such as
ringing generators).  The degree to which these expensive resources can
be shared is greatly determined by how heavily they are used -- hence
more of these resources are needed per 100 customers if they are
heavily used than if they are lightly used.

> On local calls, the local
> telephone company incurs all the costs and receives all the revenue. 

Again, not quite.  The long distance carriers incur the cost of
providing access to their networks whether or not they are used.

> In part, commercial users are charged more because they are presumed to
> make more local calls within the local no-charge calling area.

Another large component in the ratemaking exercise is the value of the
service to the customer.  Obviously, a telephone is worth much more to
a business than to a residential customer, so the business will be
willing to pay more for the service.  The economists have a fancy
phrase that describes this view.

> BBS's probably receive a lot of local no-charge calls, but they should
> not pay commercial rates for that.  The new wave of usage-sensitive
> pricing will ultimately make the callers pay even for those local
> calls, so if the BBS is charged for them the local company will be paid
> twice.  And BBS's don't make a lot of local calls.

The same sort of thing might be said of radio stations, particularly
talk-show stations.  Anyone know what such stations pay for the special
switching offices they use?

> Other than that, commercial lines might be charged more than
> residential lines based on presumed ability to pay.  That might be
> arguable but should not be argued in this newsgroup.  At any rate, no
> such presumption applies to a BBS run for fun.

Actually, what I am seeing in this discussion is a special interest
group that has been getting a bargain in telephone rates screaming when
they were asked to pay part of the REAL cost of their special grade of
service.

				Rich Strebendt
				ihlpb!res

sandy@turnkey.TCC.COM (Sanford 'Sandy' Zelkovitz) (10/28/88)

In article <1514@ssc.UUCP>, markz@ssc.UUCP (Mark Zenier) writes:
> 

> Thats their choice.  But don't expect the rest of the rate payers to be
> happy that someone has decided that their hobby will be tieing up the phone 
> lines and that they should be subsidized by everyone else.
> 

BBS systems do not tie up the phone lines but bring EXTRA revenue to the
phone companies. This is a proven fact! A good example is my bbs, the majority
of the callers are calling long distance. Not only are they long distance
but MANY are calling from other countries. This certainly is NOT being
subsidized by everyone else but by the callers themselves. Instead of
increasing the rates, the telephone companies should decrease the rates!

> 
> To be cynical about The Phone Company, the next step will be measured billing.
> 
You are correct, we should not be cynical about the phone companies, we should 
be outright disgusted!

> Mark Zenier	uunet!pilchuck!ssc!markz		

Sanford <sandy> Zelkovitz   XBBS   714-898-8634

elg@killer.DALLAS.TX.US (Eric Green) (10/28/88)

in article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) says:
> In article <1933@uokmax.UUCP>, russ@uokmax.UUCP (Russ "Random" Smith) writes:
>> ->     Recently, Southwestern Bell began raising the telephone rates 
> < ->of computer bulletin board systems (BBSs).  The rates are being 
>> ->raised from $13.35 (the residential rate) to $32.85 (the 
> < ->commercial/business rate).  This increase is an increase of over 

> And I hope it does not.  SWBell is really only doing what it must.  Why do you
> think they charge more for "commercial" lines than residential?  

Short answer: because they can.

Long answer: there is intense grass-roots pressure for low-cost
residential service. Such service is excused after the fact as a
"life-line" service. Low-cost residential service is subsidised by
commercial rates and by a hidden charge on each long distance call
that you make. 

> of ability to pay, but because those lines cost more to provide than
> residential lines.  The cost of providing a line is significantly affected by
> the amount of use the line gets, both incoming and outgoing.  Business line

Wrong. It costs the same amount of money to string a telephone line
into a business, that it does to string that same phone line into a
home. That is, the overhead for each telephone line is fixed
regardless of usage.

The overhead that DOES cost based upon usage is the cost of the
switches. The phone company does have to put in some excess capacity
to handle the extra phone calls that businesses make during the day.
But at night, when BBS's flourish, this extra capacity is mostly
unused.  Paying for something that's currently unused seems sort of,
uhm, ridiculous, to me. It's as if the city wanted to charge a fee to
panhandlers getting aluminum cans and bottles out of the ditches...


> Let me offer an alternative.  How about if all lines are charged based on the
> amount of time the line is busy, i.e. you get billed during incoming and
> outgoing calls, but not when the phone is on hook.  How would you
> feel then?

This has happened. It's been the rule in Chicago for a couple of years
now. Consumer groups have been outraged by the results. The phone
company promised that the average phone bill would drop. Instead, it
has risen tremendously. It seems that the average person uses the
phone much more than most thought.

Didn't we just get finished with this issue when dealing with access
fees for online services?

--
Eric Lee Green    ..!{ames,decwrl,mit-eddie,osu-cis}!killer!elg
          Snail Mail P.O. Box 92191 Lafayette, LA 70509              
It's understandable that Mike Dukakis thinks he can walk on water.
He's used to walking on Boston harbor.

gary@percival.UUCP (Gary Wells) (10/28/88)

just to set the record straight, there are several types of costs associated
with telephone service, some of which are fixed and some of which do vary with
useage.

for instance: the cable from the co to your house is there whether the phone is
on or off hook; a fixed cost.  on the other hand, the internal connections in 
the switching machine are prbably in use by someone else if you aren't on-line.
these connections do have an associasted cost: both in terms of initial cost to
acquire and install, and in on-going maintenance.  and they do wear out and need
to be replaced.  these are the variable costs.  another variable cost is the 
number of these connections.  as has been mentioned, _no_ exchage is built to 
provide simultanious access to all of its subscribers.  the telco's are playing
the odd's everytime someone picks up a phone.  long duration calls, such as to
bbs's, change the odds.  and that means that the telcos have to install more 
internal connetions, which raises costs.  this in itself is adequate justificat-
ion to charge commerical rates to bbs's.

don't get me wrong.  i'm a firm supporter of bbs's, i have run a couple, and 
used a lot.  but the telco's do have a solid position, which ranting and raving
about can't change.  

there is an answer: _support_ the boards you use.  i don't know anyone who 
couldn't afford $25.00 a year, and i don't know a sysop who would turn it down.
to corrupte an old phrase, put your money where your hobby is, not your mouth.

-- 
--------------------------------------------------------------------------------
Still working on _natural_ intelligence.

gary@percival   (...!tektronix!percival!gary)

judy@moray.UUCP (Judy Scheltema) (10/28/88)

From uucp Thu Oct 27 20:40 CST 1988
>From dillo1!ehopper  Thu Oct 27 20:40:15 1988 remote from hounix
Received: by moray.UUCP (smail2.5)
	id AA09783; 27 Oct 88 20:40:15 CST (Thu)
To: hounix!moray!judy hounix!moray!nuchat!root ssbn!bill ssbn!petro!bruce
Subject: KTRK News story

Here is the transcript of the news story on KTRK-TV regarding our
meeting today:
  
KTRK-TV News 6:00 PM 10/27/88
 
Reporter Tom Koche:
 
"You might say there's been a showdown averted at the computer
corral tonight. Southwestern Bell had planned to charge business
rates to operators of computer bulletin boards in the Houston area.
But computer buffs raised such an outcry that Bell decided not to
raise it's rates at this time.
 
"But the computer enthusiasts want Bell's assurance that rates won't
be raised in the future because they consider bulletin boards hobbys
instead of businesses."
 
Reginald Hirsch (COSUARD President):
"Our gameplan is to meet with Southwestern Bell officials, at their
request, including some of their top management tommorrow -Friday-
and there to see if we can reach some form of agreement. If we can't
we are prepared to do whatever is necessary."
 
Koche:
 
"Bell says it believes some bulletin boards should be charged
business rates, it just hasn't identified yet which ones."
 
------------------END OF TRANSCRIPT-----------------------------------
 
NOTE:
 
While the story implies that all is settled, the rollback of rates
by Southwestern Bell is temporary. Some signals from them indicate
that they still hold the view that ALL bulletin boards should pay
business rates.
 
Ed Hopper
 
 


-- 
Judy Scheltema                |                     uunet!nuchat!moray!judy
Houston, Texas                |                 bellcore!texbell!moray!judy

randy@uokmax.UUCP (Longshot) (10/28/88)

I have discussed this somewhat with some local SysOps and users. The mess has
started in Houston, and there's a reason for that. Many BBS's in the Houston
area are sponsored by businesses. There is a local BBS around here that is
sponsored by a (somewhat) large audio equipment store. These BBS's tend to 
promote the businesses somewhat, and there is where Bell has it's argument.
The general attitude among those I have spoken with is, charge the business-
sponsored groups business rates, and the non-profit groups residential rates.
Then there is the question of subscription systems. Last I checked, the local
node of Dial-Your-Match was charging $5/yr to users. Now, that system will
average 45-60 users easily. DYM software is cheap, if not PD. He's running it
on a C64. Whip out the archaic TI-55 III... let's say 100 users come and go
on the average year (including modems as Christmas and birthday presents).
That's $500 (so I don't need the TI after all :-). About $400 will be spent
on a business line. That only leaves $100 for system maintenance. However,
put 'em down to a residential line, and the line cost is ~$240, leaving $260,
practically enough to REPLACE, let alone fix, what goes wrong on a CBM system.
(Of course, with CBM, fix usually implies replace :-) ). But, if you are
charging, there is no question; you are a business. The question is when you
aren't charging.

Randy

james@bigtex.cactus.org (James Van Artsdalen) (10/28/88)

In <8992@ihlpb.ATT.COM>, res@ihlpb.ATT.COM (Rich Strebendt) wrote:

> The same sort of thing might be said of radio stations, particularly
> talk-show stations.  Anyone know what such stations pay for the special
> switching offices they use?

They will pay commercial rates in the state of Texas.

Has everyone forgotten that rates are *not* set by the phone company
deciding what constitutes a business, but instead by PUC rules stating
what class a phone falls in.  Whether or not the phone is "commercial"
in our meaning of the word isn't an issue: the issue is whether it
falls in a class defined in PUC tarriffs, known as "business".  For
example, churches might have to pay business rates depending on where
the phone is located in the church, strictly according to PUC rules.
The issue in question is whether SWBT is following the tarriff or not.

The issue of whether the caller or answering should pay for the cost
of the call is something to be taken up with the PUC.  I dread to
think of the results if any significant portion of cost were shifted
from caller to called: sales/nuisance calls galore!
-- 
James R. Van Artsdalen      james@bigtex.cactus.org      "Live Free or Die"
Home: 512-346-2444 Work: 338-8789       9505 Arboretum Blvd Austin TX 78759

sandy@turnkey.TCC.COM (Sanford 'Sandy' Zelkovitz) (10/28/88)

In article <8992@ihlpb.ATT.COM>, res@ihlpb.ATT.COM (Rich Strebendt) writes:
> In article <3945@homxc.UUCP>, marty@homxc.UUCP (M.B.BRILLIANT) writes:
> > In article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:
> > > < -> ....
> 
> Not quite.  The customer premise cost (wire, installation, etc.) is
> really not that great (on an annualized basis) compared to the cost in
> the switching offices.  What you say may be true for the per-line
> equipment, but is NOT true for the shared (common) equipment (such as
> ringing generators).  The degree to which these expensive resources can
> be shared is greatly determined by how heavily they are used -- hence
> more of these resources are needed per 100 customers if they are
> heavily used than if they are lightly used.
> 

Boy, this sure sounds like a sales pitch by AT&T. The first thing that
you obviously forgot about is the excessive amount of revenue you are
receiving from all the long distance phone calls that are being made.
Not only do users of BBSs make these long distance calls on PRIME time
but so do the SYSOPs of the different boards to gather data for their
users. I will make a deal with you, if you want to charge business rates
to "non-profit" bbs systems, how about giving these non profile systems a
"cut" on the revenue that you take in because of the EXCESSIVE amount of
revenue being made. I think a 50-50 split would be fair! Since this is
money you would never had made in the first place!!!! I'm sure that you
could buy MANY ring generators etc. with your excessive profits!


> > BBS's probably receive a lot of local no-charge calls, but they should
> > not pay commercial rates for that.  The new wave of usage-sensitive
> > pricing will ultimately make the callers pay even for those local
> > calls, so if the BBS is charged for them the local company will be paid
> > twice.  And BBS's don't make a lot of local calls.
> 
> The same sort of thing might be said of radio stations, particularly
> talk-show stations.  Anyone know what such stations pay for the special
> switching offices they use?
> 

As we all know, radio stations have paid commercials! We are talking about
NON-COMMERCIAL operations.

> > Other than that, commercial lines might be charged more than
> > residential lines based on presumed ability to pay.  That might be
> > arguable but should not be argued in this newsgroup.  At any rate, no
> > such presumption applies to a BBS run for fun.
> 
> Actually, what I am seeing in this discussion is a special interest
> group that has been getting a bargain in telephone rates screaming when
> they were asked to pay part of the REAL cost of their special grade of
> service.
> 
> 				Rich Strebendt
> 				ihlpb!res

The only real bargin that is being made is by AT&T! If BBSs were to be
a "thing of the past", your income would decrease considerably. If you
would like, I would LOVE to send you one of my daily logs. You will find
that over 80% of my callers call long distance. Not only do they call
long distance but a majority call during the prime time hours.
 
Instead of charging even the "basic" home rate to BBS sysops, what you really
should do is just give them the line for free! Just think, more lines, more
long distance phone calls, more revenue!

Sanford <sandy> Zelkovitz    XBBS    714-898-8634
P.S. And I am proud to say that I am serviced not by Bell but General
     Telephone. I was having problems with a little noise and General
     IMMEDIATELY fixed it for me. At least they appreciate hobbiests
     like myself.

lee@uhccux.uhcc.hawaii.edu (Greg Lee) (10/28/88)

From article <8992@ihlpb.ATT.COM>, by res@ihlpb.ATT.COM (Rich Strebendt):
" ...
" Another large component in the ratemaking exercise is the value of the
" service to the customer.
" ...
" group that has been getting a bargain in telephone rates screaming when
" they were asked to pay part of the REAL cost of their special grade of
" service.

The value of the service to the customer is higher, therefore the
REAL cost is higher.  Isn't this reasoning a little twisted?

	Greg, lee@uhccux.uhcc.hawaii.edu

dorn@fabscal.UUCP (Alan Dorn Hetzel) (10/28/88)

In reference to the rebuttal from the goon at AT&T, which states that he
hope SWBell winds up winning, because they are really justified in charging
that much more for "business" lines due to increased costs associated with
increased usage:

     1) charges for types of lines, such as residential and/or commercial
        are not determined on a cost recovery basis.  (At least not here
        in Georgia, and not in several other states I know of)  These
        charges are determined by the local PSC (Public Service Commission)
        and they are very political in nature, having little to do with 
        real costs.

     2) Where AT&T is concerned, their cost to carry traffic *is* usage
        sensitive, because when a long distance circuit isn't being used
        by one customer, it can be used by another.  This is *not* the
        case for the local operating companies, whose *major* cost is
        maintaining their physical plant (The miles and miles of copper
        they have put in the ground and strung on poles).  Every customer
        phone, whether business or residential, uses a dedicated pair of
        copper wires all the way back to the switch.

     3) Now, yes, there are some additional costs related to switch bandwidth
        which *are* traffic related, but they are truly insignificant when
        judged in comparison to the fixed costs of maintaining and improving
        the base wiring.

     4) Here in Georgia, the PSC *highly* subsidizes residential (especially
        rural residential) rates by inflating business rates substantially.
        A while back (several years) some enterprising soul from the business
        community suggested cost based billing.  This would have based cost
        of service to the customer on the cost of providing service.   The
        thing which killed this idea was that the typical rural residential
        customer who was forty miles from his exchange would have had a
        *huge* monthly bill, and the city customer would pay almost nothing.
        You can guess this didn't fly with the PSC.

     More later,

-d.

halle@homxc.UUCP (J.HALLE) (10/29/88)

In article <7360@nsc.nsc.com>, nessus@nsc.nsc.com (Kchula-Rrit) writes:
> are relatively idle.  Most residential lines that I know of get more use in
> the "off-peak" times when business lines tend to be idle.  I'm sure that
> "ability to pay" enters into the equation somewhere, as well.

The residential peak time is indeed different from the business peak, but
the peak level of usage is still significantly smaller for residential.
Ability to pay only enters into it in that the PUCs will not yet allow the
telcos to charge residences what they ought to.  They are still being
subsidized by business users.

>      My USENET feed operates ONLY during the night-rate period(11pm-7am);
> the primary reason I do this is co$t; I cannot afford to get an extra line
> just for the modem.  It does not seem right to me that I should pay daytime
> rates so I can use my modem at night.

If there were a tariff for nightime only business use, and if such activity
could be monitored, then a reduced rate for such use would be in order.  The
monitoring is possible with most modern switches.  Now get after your PUC to
authorize such a tariff.  This would be the best solution for all.

>					My impression is that "business use"
> implies an intention to make a profit from a particular activity; non-profit
> organizations by their nature [in theory] have other reasons for their
> existence.  I do not operate my USENET node to make a profit, it is one
> of my "windows on the world"; as such it is very valuable to me.

Not at all.  "Business use" is non-residential.  Period.  Profit never enters
the picture.
 
>      I find it interesting that your "alternative" is already what I have
> implemented on my phone; it's called "measured-rate service"; I pay a
> connect-charge followed by a per-minute charge, modified by a multi-
> plication factor which takes into account the [roughly approximate]
> time of day.  Fortunately, in my case, the connect is 4 cents followed
> by 1 cent per minute of connect time; if these amounts were multiplied
> by 2.4 (the business/residential differential mentioned above), I would
> have to get off the net altogether.
 
Not quite.  You pay only for calls you originate.  But the line is in use
even on calls you receive.  If you receive substantially more calls than you
originate, you don't pay your "fair share."  (Granted those at the other end
do if they are in the same LATA with the same rate structure.)  Your billed
usage is not indicative of your actual usage.
 
> pardon my cynicism but, in my observation, Ma Bell is non-
> monopolistic in name only.  At least in [Northern] California, the Public

It never was non-monopolistic for local service.  That's why it's regulated.

> Utilities Commission seems to be a rubber-stamp(Yes-man, if you prefer)
> to the utilities; it seems every month that some new rate-raise is
> "allowed" by them.  Since they supply our power, water, and communications

That may be true for the other utilities, but not for communications.  The
CA PUC is universally recognized as the toughest commission in the USA when it
comes to phone service.  Rates are not allowed to rise and other telco
concessions are forced routinely.  As proof, look at the ROR, the bond rating,
and the stock performance of PacTel vs. the other six.  PacTel is consistently
on the bottom.

(diatribe on utilities in general deleted as immaterial to the discussion)

marty@homxc.UUCP (M.B.BRILLIANT) (10/29/88)

In article <8992@ihlpb.ATT.COM> Rich Strebendt (ihlpb!res) makes some
good points, but I don't totally agree:
> ...
> In article <3945@homxc.UUCP>, marty@homxc.UUCP (M.B.BRILLIANT) writes:
>> ...  The usage cost of a BBS line is borne by the callers, and
>> the operator should not be charged for it.
>> 
>> The cost of the line itself is the cost of materials, installation, and
>> repairs.  That cost is not affected by usage.  All the cost of usage
>> has traditionally been paid by the caller.
> 
> Not quite.  The customer premise cost (wire, installation, etc.) is
> really not that great (on an annualized basis) compared to the cost in
> the switching offices.  What you say may be true for the per-line
> equipment, but is NOT true for the shared (common) equipment ...

Whoa.  The line includes only the per-line equipment by definition. 
The shared equipment is not part of the line.  It is paid for, when
used, by the calling party.

>> On local calls, the local
>> telephone company incurs all the costs and receives all the revenue. 
> 
> Again, not quite.  The long distance carriers incur the cost of
> providing access to their networks whether or not they are used.

That's not a cost of local calls.  There is, of course, the bogus
"usage charge" which is charged to all customers to pay part of that
access cost, but it's a small part of the bill.

Anyway, the long distance carriers provide only as many access channels
as are justified by the usage.  Similarly, the local carriers provide
only as many local trunks as usage justifies.  So charging the caller
on a usage basis is perfectly proper.

>> In part, commercial users are charged more because they are presumed to
>> make more local calls within the local no-charge calling area.
> 
> Another large component in the ratemaking exercise is the value of the
> service to the customer.  Obviously, a telephone is worth much more to
> a business than to a residential customer, so the business will be
> willing to pay more for the service.  The economists have a fancy
> phrase that describes this view.

The value of a BBS accrues at least as much to the caller as to the
sysop.  The caller pays the communications charges and gets free
services from the BBS.

>> Other than that, commercial lines might be charged more than
>> residential lines based on presumed ability to pay.  That might be
>> arguable but should not be argued in this newsgroup.  At any rate, no
>> such presumption applies to a BBS run for fun.
> 
> Actually, what I am seeing in this discussion is a special interest
> group that has been getting a bargain in telephone rates screaming when
> they were asked to pay part of the REAL cost of their special grade of
> service.

As I see it, its not the BBS sysop that gets the bargain.  If anybody
does, it's the caller.  If you want to avoid cross-subsidization, and
I think we all do, the way to do that is move to usage-sensitive
pricing, paid by the caller.  The person who chooses whether or not to
make the call is the one who should face the economic consequences.

						Marty
M. B. Brilliant		houdi!marty1, homxc!marty

Disclaimer: Opinions stated herein are mine unless and until my employer
	    explicitly claims them; then I lose all rights to them.

steve@nuchat.UUCP (Steve Nuchia) (10/30/88)

From article <2393@turnkey.TCC.COM>, by sandy@turnkey.TCC.COM (Sanford 'Sandy' Zelkovitz):
> In article <8992@ihlpb.ATT.COM>, res@ihlpb.ATT.COM (Rich Strebendt) writes:
>> In article <3945@homxc.UUCP>, marty@homxc.UUCP (M.B.BRILLIANT) writes:
>> > In article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:

> Boy, this sure sounds like a sales pitch by AT&T. The first thing that
> 
> The only real bargin that is being made is by AT&T! If BBSs were to be

We all have this problem, saying "AT&T" whenever we are talking about
phones is as natural as asking for a Kleenex or a Coke.  And just as wrong.

This fight is with Southwestern Bell, a *former* AT&T subsidiary and now
a very healthy independent monopoly with no official ties to momma.  The
rate interpretation in question has nothing whatsoever to do with AT&T.
The long distance rates are identical for business and residential customers
so AT&T is completely uninvolved.

There a many issues here, and it takes some effort to keep them straight,
but keeping them straight is our only hope.

By the way, much has been made about the relative cost of BBS and other
hobbiest lines versus "normal" residential lines in these discussions.
It is interesting to note that cost is *not* the justification being
offered by SWB -- their position seems to be based more on consistency.
In other words, they are trying to apply business rates so that businesses
won't have a selective enforcement case.

A further refutation to the cost argument which may already have been
aired is that the switch usage is typically greatest at night while
overall switch usage is highest during business hours.  The switch
doesn't have to go home and sleep, so I can't see how we're costing
them anything extra there.

-- 
Steve Nuchia	    | [...] but the machine would probably be allowed no mercy.
uunet!nuchat!steve  | In other words then, if a machine is expected to be
(713) 334 6720	    | infallible, it cannot be intelligent.  - Alan Turing, 1947

learn@igloo.UUCP (william vajk) (10/30/88)

In article <3940@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:
 
< And I hope it does not.  SWBell is really only doing what it must.  Why do you
< think they charge more for "commercial" lines than residential?  Not because
< of ability to pay, but because those lines cost more to provide than
< residential lines.  The cost of providing a line is significantly affected by
< the amount of use the line gets, both incoming and outgoing. 

When setting the rate structures for outgoing calls, it is alleged that the
cost of the entire call, from point of origin, through all the switches, and
on through the destination are borne by the originating caller.

When setting the rates for phone lines, it is alleged that the monthly basic
fees cover the costs of a line which is idle 100.00% of the time.

The incoming use is covered, the outgoing use is covered. These rates,
including "fair profit" are negotiated with the Public Utilities Commission
in every state.

< Let me offer an alternative.  How about if all lines are charged based on the
< amount of time the line is busy, i.e. you get billed during incoming and
< outgoing calls, but not when the phone is on hook.  How would you feel then?
 
The costs borne at this time by the originating caller would have to be
reduced in order to maintain the "fair profit" levels agreed to by the
operating companies. As matters stand, the "fair profit" levels for the
telephony monopolies are in keeping with the agreements made with the
various states.

< I could go on, but I've made my point.  I see nothing unfair about what the
< phone company is trying to do, and in fact they are giving the BBSs a break
< by not doing what they really ought to do if they were able.

An opinion, yes. Realistic, no.

< (Side issue.  The reporter who wrote the original article cannot be called a
< reporter in any real sense of the word.  He editorialized unmercifully, and
< made a number of unfounded and totally off-the-wall insinuations.  Yellow
< journalism at its best.)
 
< J. C. Halle

And I suppose we'll hear that you have absolutely no bias regarding phone 
rates. Can you say "knee jerk ?"  I knew you could.

Bill Vajk                                                      learn@igloo

palowoda@megatest.UUCP (Bob Palowoda) (10/31/88)

> However, I think you should realize -- that's NOT how they claim to do it!  A
> business line is to charge people that make MONEY by using those phone lines.
> I assure you, my BBS doesn't make a dime for me -- indeed, I lose the bucks
> for the phone line.
> 
   
   I too run a bbs for non profit at a loss. But SW Bell is sucsessful
   and other local carriers adopt the structure it will give me
   the reason I need to write it off on the IRS. 

> Why charge it for a business when it's not?  Okay, if they're going to change
> the whole definition of a business line, that's one thing -- but that's only
> a fantasy that you've given us.  The truth us, they've defined BBS's as
> obviously being businesses for profit using the phone lines -- and in most
> cases, that's simply untrue.

  One of their points is that bbs are non-profit organizations, which
  they are charge commercial rates to these organizations. I don't think
  they have a leg to stand on from occured use, but there is other points
  (legal) to look at.
> 
> Mind you, there are systems that are pay and make a profit.  More power to
> Bell where those are concerned -- they are business; they should have
> business lines.  But to tell me that *I* am a business?  I'd say not.

    You are not a "business", you and your users are a non-profit organ.
    If you want to have fun start writeing your assembly-man and represenative
    to well define this. 

    ---Bob

-- 
 Bob Palowoda                               
 Work: {sun,decwrl,pyramid}!megatest!palowoda                           
 Home: {sun,pryamid}aeras!grinch!legends!fiver!palowoda                
 BBS:  (415)656-9386 2400/1200   Voice:(415)656-9384                  

nessus@nsc.nsc.com (Kchula-Rrit) (11/01/88)

In article <3964@homxc.UUCP> halle@homxc.UUCP (J.HALLE) writes:
=>In article <7360@nsc.nsc.com>, nessus@nsc.nsc.com (Kchula-Rrit) writes:
=>> are relatively idle.  Most residential lines that I know of get more use in
=>> the "off-peak" times when business lines tend to be idle.  I'm sure that
=>> "ability to pay" enters into the equation somewhere, as well.

=>The residential peak time is indeed different from the business peak, but
=>the peak level of usage is still significantly smaller for residential.
=>Ability to pay only enters into it in that the PUCs will not yet allow the
=>telcos to charge residences what they ought to.  They are still being
=>subsidized by business users.

=>>					My impression is that "business use"
=>> implies an intention to make a profit from a particular activity; non-profit
=>> organizations by their nature [in theory] have other reasons for their
=>> existence.  I do not operate my USENET node to make a profit, it is one
=>> of my "windows on the world"; as such it is very valuable to me.

=>Not at all.  "Business use" is non-residential.  Period.  Profit never enters
=>the picture.

     But I am not a business or, if you prefer, not "non-residential".  My
feed operates out of my house; therefore I see no reason I should not get
the residential rate.  If I operated a business out of my house, I
would expect to pay the business rate.

=>Not quite.  You pay only for calls you originate.  But the line is in use
=>even on calls you receive.  If you receive substantially more calls than you
=>originate, you don't pay your "fair share."  (Granted those at the other end
=>do if they are in the same LATA with the same rate structure.)  Your billed
=>usage is not indicative of your actual usage.

     Actually, it is; I originate ALL of my calls, partly because I do not
have my modem set up for dial-in access.

     I should have seen this whole thing for what it is, a religious
discussion(sigh).

-- 
						Kchula-Rrit

"In challenging a kzin, a scream of rage is sufficient.
 You scream and you leap."

erict@flatline.UUCP (j eric townsend) (11/03/88)

In article <2642@nuchat.UUCP>, steve@nuchat.UUCP (Steve Nuchia) writes:
> By the way, much has been made about the relative cost of BBS and other
> hobbiest lines versus "normal" residential lines in these discussions.
> It is interesting to note that cost is *not* the justification being
> offered by SWB -- their position seems to be based more on consistency.
> In other words, they are trying to apply business rates so that businesses
> won't have a selective enforcement case.

Keep in mind, also, one reason they're doing this.  One multi-line cb sim
(known as RoundTable) operator, Jim Penny (and his son, Bruce Scott) was
paying business rates for 16+ lines (32 at one point).  Several "D-Dial"s
sprung up, with monthly rates 1/2  - 1/5 that of RoundTable.  Soon,
RT was pressed to stay in businesss.  After some scouting around,
the Pennys found out that the other cb sim operators were being charged
residential rates for their for-profit systems.  The Pennys sued
SWB for unfair rate structuring.  ie:  We're (the for profit cb-sim
system operators) all businesses, therefore we should all be charged
the same rate.

SWB proved their stupidity once again, confusing "business" with "bbs"
-- an easy enough error, no? -- and decided to charge everybody too
much money.




-- 
"I'm doing a survey on this kind of mindless violence and its affect on
the mindless..."  -- Max Headroom (who else but?)
J. Eric Townsend                  smail: 511 Parker #2, Houston, Tx, 77007
Inet: COSC3AF@george.uh.edu             UUCP:  uunet!nuchat!flatline!erict
Bitnet: COSC3AF@UHVAX1.BITNET            ..!bellcore!tness1!/

halle@homxc.UUCP (J.HALLE) (11/05/88)

In article <1087@igloo.UUCP>, learn@igloo.UUCP (william vajk) writes:
> When setting the rate structures for outgoing calls, it is alleged that the
> cost of the entire call, from point of origin, through all the switches, and
> on through the destination are borne by the originating caller.

Not true.  However the usage sensitive revenue recovery is from the originator.
This is not semantics, but a subtlety.

> When setting the rates for phone lines, it is alleged that the monthly basic
> fees cover the costs of a line which is idle 100.00% of the time.
 
Not true.  The monthly basic fees include the equipment, copper, and all
allocated pieces of embedded plant from the serving wire center to the network
termination at the house.  It also includes a portion of the switch on which
the line terminates, as well as other costs associated with the office, such
as maintenance, operations support, administration, ...

> The incoming use is covered, the outgoing use is covered. These rates,
> including "fair profit" are negotiated with the Public Utilities Commission
> in every state.
 
Incoming is only covered if the amount of usage is around what the expected
norm is on which equipment was engineered and on which tariff requests were
based.  As for negotiating with the PUCs, some are fair and some are not.  The
"fair profit," actually rate of return on investment, is often a smokescreen
which cuts both ways.  A good accountant can make it whatever is desired.

> < Let me offer an alternative.  How about if all lines are charged based on the
> < amount of time the line is busy, i.e. you get billed during incoming and
> < outgoing calls, but not when the phone is on hook.  How would you feel then?
> The costs borne at this time by the originating caller would have to be
> reduced in order to maintain the "fair profit" levels agreed to by the
> operating companies. As matters stand, the "fair profit" levels for the
> telephony monopolies are in keeping with the agreements made with the
> various states.

Not necessarily.  It would depend on the traffic mix.  Also, remember that
residences are not paying their fair share.

> < I could go on, but I've made my point.  I see nothing unfair about what the
> < phone company is trying to do, and in fact they are giving the BBSs a break
> < by not doing what they really ought to do if they were able.

> An opinion, yes. Realistic, no.

Huh?

> < (Side issue.  The reporter who wrote the original article cannot be called a
> < reporter in any real sense of the word.  He editorialized unmercifully, and
> < made a number of unfounded and totally off-the-wall insinuations.  Yellow
> < journalism at its best.)
> And I suppose we'll hear that you have absolutely no bias regarding phone 
> rates. Can you say "knee jerk ?"  I knew you could.

That's right.  I have no bias regarding the phone rates charged by the BOCs.
Of course I'd prefer that NJ Bell charged me as little as possible, but I'd
happily pay a little more now if it means not paying a lot more later.  I was
merely stating the facts.

The only "knee jerk" reaction I had was that unfounded and patently false
and ridiculous allegations have no business being disguised as reporting.
If it's an editorial, tag it as such.

J. C. Halle

learn@igloo.UUCP (william vajk) (11/08/88)

In article <4078@homxc.UUCP>, halle@homxc.UUCP (J.HALLE) writes:
 
> Not true.  
  
> Not true. 
  
> Incoming is only covered if the amount of usage is around what the expected
 
> Not necessarily.
 
> That's right.  I have no bias regarding the phone rates charged by the BOCs.
> Of course I'd prefer that NJ Bell charged me as little as possible, but I'd
> happily pay a little more now if it means not paying a lot more later.  I was
> merely stating the facts.
 
> The only "knee jerk" reaction I had was that unfounded and patently false
> and ridiculous allegations have no business being disguised as reporting.
> If it's an editorial, tag it as such.
 
Rather than bore the participants of this newsgroup with all the nitty
gritty details, I only note that EVERY item discussed is immediately
negated by Mr. Hale, who has no bias where the phone company is concerned,
but offers to us the view that the _poor ole phone company_ is really
being taken advantage of in a big way by almost every customer.

In the meantime, it is quite obvious to the rest of us that the BOC's
and other operating companies are doing just fine in terms of
profitability, because they, in conjunction with the Public Service
Commissions in the various states, are quite willing to settle rate issues
on a statistical basis. I will add that here in Illinois a use sensitive
rate structure was imposed, and the net effect has been to increase the
profitability of the BOC above the allowable limits. This excess profit
has to some great extent been offset by "losses" due to the Hinsdale fire,
a loss which, in my opinion, should hit the shareholders instead of the
customers. Or isn't a monopoly a venture ?

Bill Vajk                                               learn@igloo