[comp.dcom.telecom] Intrastate Rates and Competition

roy@cs.umn.edu> (05/21/91)

In message <telecom11.379.3@eecs.nwu.edu>,floyd@ims.alaska.edu (Floyd
Davidson) writes about intrastate phone rates in Alaska:

> The rates are lower, but the ratio is still the same.  LA would be
> cheaper than Nome.  I don't know for sure, but isn't intrastate
> service more expensive than interstate just about everywhere?

Yes, in my experience they are.

> Now the interstate rate structure is based on the cost of providing
> interstate service, and the same with intrastate service.

Before I left Alaska, I recall GCI campaigning heavily for the right
to compete against Alascom for intrastate service.  Did anything ever
come of that?  GCI claimed it would be able to slash intrastate rates
with a comparable level of service.


Roy M. Silvernail   roy%cybrspc@cs.umn.edu
cybrspc!roy@cs.umn.edu  roy@cybrspc.uucp(maybe!)

Floyd Davidson <floyd@ims.alaska.edu> (05/21/91)

In article <telecom11.384.6@eecs.nwu.edu> cybrspc!roy@cs.umn.edu (Roy
M. Silvernail) writes:

> Before I left Alaska, I recall GCI campaigning heavily for the right
> to compete against Alascom for intrastate service.  Did anything ever
> come of that?  GCI claimed it would be able to slash intrastate rates
> with a comparable level of service.

This may be hard for me to discuss objectively, but it has some
amusing facits.  Intrastate competition is coming to Alaska in the
next few weeks.  (You may derive my concern from the fact that I don't
even know the date ...)

Alascom, Inc. (owned by Pacific Telecom) is the regulated carrier of
last resort, and General Communications Inc. is the alternate carrier.
Interstate competition has existed for a few years and has now gone up
the ladder to Equal Access in major markets.

The only significant effect that it has had is one scheduled rate
reduction was instituted six months ahead of schedule, (The schedule
was worked out between AT&T and Alascom for rate equalization, in
1979.)  and a very interesting advertising battle between the two
companies.  I work for Alascom, but I would vote GCI's commericials
just a cut above!  Better jabs.

One GCI commercial made a good deal of fun at the expense of the
general manager of Alascom, who was headquartered in Vancouver, Wn.
They asked if you knew where your money was going, while showing a man
with a briefcase walking through an airport ... on the brief case was
a bumber sticker that said " I love VANCOUVER ".  It was good.  And
then one talked about how the Alascom manager got to work (local hire
is a big deal here), and showed a 737 landing.  Then they cut to how
GCI's manager gets to work in an old beat up VW bus (cause he is a
*real* Alaskan).

Alascom then ran a commercial showing the GCI manager's other car, the
$50,000 model.  Of course it came out in the papers that the poor man
had to drive the VW all winter because it would have looked pretty bad
if he didn't!  (The other car belonged to his wife, from before they
were married too.)

It goes on and on.  They both do really good ads.

The status right now is that GCI is complaining to the FCC that
Pacific Telecom won't sell them circuits on the new Pacific fiber
optic cable at a reasonable rate and refused originally to let them
buy into it.  And AT&T is complaining that they want more compression
(twice as many circuits) used on the fiber to reduce their cost
(subsidies to Alascom).  Alascom is claiming they haven't even filed a
tariff on the fiber, how can the rate be too high, and what do mean we
should compress our circuits more? You don't compress your circuits
that much, why should we provide inferior service?

And GCI advertised that they were going to fiber before Alascom did
too!  And they will, right after Alascom does, by leasing circuits
from Alascom.  Actually Alascom's competition is also one of their
best customers!  Kind of hard to knock that.

The sun is up 18 hours a day, and mosquito's the size of hummingbirds
are everywhere, I'm on vacation, and when I get back to work there
will be competition.  And nothing will change.


Floyd L. Davidson   | Alascom, Inc. pays me, |UA Fairbanks Institute of Marine
floyd@ims.alaska.edu| but not for opinions.  |Science suffers me as a guest.