[comp.dcom.telecom] Telco Depreciation Schedule is Unfair

mat@uunet.uu.net (06/14/91)

>> Also, telco *could* now
>> provide 'programmable forward on busy / no answer' if they wanted to.

> This isn't available on all Ameritech switches (especially those nice
> 1A ESS(tm) switches).  Ameritech Mobile's oldest switch is probably
> two years old; they ditched all the original switches.

> Try to talk the regulators into allowing the wholesale replacement of
> all those old(er) switches!!!

This is a MAJOR consideration.  Telco equipment has to be depreciated
over a 15 to 20 year period.  It all used to be 20 years until AT&T
took some senators and House representatives into its factories and
said `Can you tell the difference between the telephone circuit boards
and the computer circuit boards?  Then why can't we depreciate them on
the same schedules?'  They didn't get 5-year depreciation, but they
got 15 year depreciation on some things.

What this means is that the last fellow into the market on a given
technology cycle has the advantage of the better, cheaper, more
capable equipment and nobody else can afford to upgrade.


 (This man's opinions are his own.)
 From mole-end				Mark Terribile