[comp.dcom.telecom] What Price, Cellular?

74066.2004@compuserve.com (Larry Rachman) (11/09/90)

In a recent issue of the Digest, John Higdon <john@mojave.ati.com> 
writes: 
 
>Much has been said concerning various cellular operators and what
>appear to be outrageous charges. Quite honestly, most cellular charges
>are way out of line. However, what you are seeing is the marketplace
>at work.

With all due respect, that's not how I see it. What I see is a
government-imposed duopoly artificially driving prices up into the
highest atmospheric layers. Sure, demand has been high, but that
doesn't that usually drive prices down, not up?

>At the moment I am roaming in the much-maligned LA area PacTel system.
>These are the slimes who charge for call attempts even if it's the
>system's fault that the call bombs. They charge roamers $0.70/min
>during the day..

In suburban Long Island (NY), I'm paying $0.95/min during the day,
when in HOME mode. I live near the north shore of Long Island; despite
being five miles from the nearest cell site, I roam to Connecticut
from my driveway. ("...we know about the problem, sir, but the
Connecticut signal is stronger, there...)

>But don't expect rates to come down any time soon. Those who find the
>system convenient and helpful will use it; those who do not think the
>charges are worth it will not. The providers are NOT hurting for
>customers. When someone complains that the charges are outrageous,
>he's right. 

I'll bet the rates would drop like a rock if the opportunity to
provide service was opened up to more competition. These phones are
getting down into the $300-$400 range even without the kickbacks;
there's no technical reason why they shoudn't be as omnipresent as
leather seats and air conditioning. They should be making life
convenient and safe for the general population, not just the affluent
(and us telecom hackers).

Surely, new technology would make it possible to have a multitude of
carriers in a given area. But could it be done with existing phones,
by clever reconfiguration of the System ID, and Default Calling
Channel? (I don't know; it is left as an exercise for the reader).
Nearly every phone I've opened had the EPROM socketed.

Of course this all presumes no *political* impediments, which may not
be realistic. When you've invested several hundreds of millions of
dollars cellular physical plant, and buying up other cellular
companies (and licenses), you're not about to let go without a
*protracted* legal battle.

>And when he refuses to subscribe, that's natural selection
>at work.

Piffle! Its more like when a bunch of new homeowners petition for a
moratorium on construction, to keep the 'rabble' out of the
neighborhood.


Larry Rachman, WA2BUX   74066.2004@compuserve.com