[comp.dcom.telecom] Business vs Residence

bernhold@qtp.ufl.edu (David E. Bernholdt) (01/02/91)

I have a few questions relating to the business/residence distinction:

1) Historically, what is the argument for charging businesses and
residences differently?  Do the businesses get better quality lines? :-) 
Is it more expensive (to the telco) for someone at a business
location to pick up the phone and make a call?  To receive one?  In
the latter case, isn't the person _calling_ the business picking up
the tab?

2) Do these arguments still apply in the present day?  (For example,
most people say that tone dialing is now cheaper to the telco than
pulse dialing -- thus negating a major argument for the tone dialing
tariff.)

3) In the past, what has the criteria been for the telco to force
someone to pay business rates?  Are they looking at licenses which
might be required by the local authorities or registered
charitable/non-profit groups?  Is the installer looking for some sign
that I'm running a business when (s)he comes to hook me up?

4) Where will it end?  Will I have to pay business rates if I have a
terminal/modem at home which I use to dial up the computer at work
occasionally?  Will I have to pay business rates if I put an add in
the paper trying to sell my car?  How about if I casually start buying
and selling used cars, using newspaper adds giving my home phone
number in order to fund my hobby of collecting and restoring old
Yugos?


David Bernholdt			bernhold@qtp.ufl.edu
Quantum Theory Project		bernhold@ufpine.bitnet
University of Florida
Gainesville, FL  32611		904/392 6365

kusumoto@chsun1.uchicago.edu (Bob Kusumoto) (01/07/91)

You'll have to forgive me since my experience with a business phone
line that my parent's switched to when they started a landscaping
business out in the burbs.  Our local Bell is Illinois Bell.

bernhold@qtp.ufl.edu (David E. Bernholdt) writes:

>1) Historically, what is the argument for charging businesses and
>residences differently?  Do the businesses get better quality lines? :-) 
>Is it more expensive (to the telco) for someone at a business
>location to pick up the phone and make a call?  To receive one?  In
>the latter case, isn't the person _calling_ the business picking up
>the tab?

The only differences tend to be that business get one small free
listing in the Yellow Pages.  Apart from this small fact and the
different rates that (small) businesses pay for service, there is
none.  (I mention small businesses since larger ones tend to buy or
lease their own PBX or cut some deal for the larger number of phones
lines they use, a la IN/OUT WATS.)  Businesses do have a larger
variety of services that are readily available to them though,
although I stress that these services tend to be for small businesses
and can be pretty useless to the typical BBS.

>3) In the past, what has the criteria been for the telco to force
>someone to pay business rates?  Are they looking at licenses which
>might be required by the local authorities or registered
>charitable/non-profit groups?  Is the installer looking for some sign
>that I'm running a business when (s)he comes to hook me up?

I'm not sure what the typical requirements are, basically anything
that is done for an extended period of time, running an actual
business, paying taxes or filing forms as a business, etc.  Hobby type
activities as far as I know are not charged business rates.  (I do
know that local chat lines a la Diversi-Dials, were under the gun to
pay business rates for all their phone lines because they were hitting
subscribers for monthly fees, like $10/month.)

>4) Where will it end?  Will I have to pay business rates if I have a
>terminal/modem at home which I use to dial up the computer at work
>occasionally?  Will I have to pay business rates if I put an add in
>the paper trying to sell my car?  How about if I casually start buying
>and selling used cars, using newspaper adds giving my home phone
>number in order to fund my hobby of collecting and restoring old
>Yugos?

The phone company usually lets modem lines go under residental rates
given that it's not being used to as a BBS to collect money (something
on the order of portal or maybe chinet might have to pay business
rates, prodigy probably has to pay business rates).  I think the point
is that you shouldn't have to be charged to access a particular phone
number or service charged by that number to qualify under residental
rates for BBSes.  Buying and selling used and/or reconditioned cars
probably doesn't fall under this catagory.

A final note: IBT charges a much higher rate than normal
residental/business rate for DATA QUALITY lines.  Supposedly, getting
DATA QUALITY lines guarentees a minimum level of quality between your
connection from your place to the central office (IBT does not
guarentee the wiring from the point where the wiring enters the
building box to your jack any more, although they do have services
where they will take care of the inside wiring for you for a small
monthly charge :-).  No one I know has actually gone out to do this
(although there have been times where I've been tempted to do this
myself).  I suspect this is mostly for businesses that use dedicated
lines, but then again, ISDN is also offered by IBT, which is a hell of
a lot cheaper.


Bob Kusumoto     Internet:  kusumoto@chsun1.uchicago.edu     
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