John Higdon <john@zygot.ati.com> (05/22/91)
Seeing the handwriting on the wall, Pac*Bell has some contingency
plans for the day that intraLATA toll traffic competition is allowed.
The public proposal is that a three-digit code be required for each
and every call to be routed over an alternate carrier (no pre-
subscription), but what is not talked about is the other shoe that
will create a large thud.
In order to cream the competition, Pac*Bell will suddenly lower its
toll rates by about twenty percent. This will turn the market on its
ear, particularly in how it relates to resellers such as Centex,
BizTel, and others. In essence, these people will be forced out of
business. It will also raise the residential rate by about six percent
to gain a little margin there. Currently, residence service is priced
at right around cost (no, Virginia, Pac*Bell does not LOSE money on
residence service, regardless of the propaganda). The revenue lost on
intraLATA would be partially recovered in this manner.
My own position is that since there are ways to, even now, circumvent
Pac*Bell's monopoly on intraLATA toll traffic, I would prefer the
status quo. Competition in the intraLATA toll market would simply make
it easier for the less creative among us at a substantial cost to the
residence user, no?
John Higdon | P. O. Box 7648 | +1 408 723 1395
john@zygot.ati.com | San Jose, CA 95150 | M o o !