[comp.dcom.telecom] Questions About Local Service and Long Distance Rates

boerner@emx.utexas.edu> (07/13/90)

I have two questions regarding local phone operation and one regarding
long distances rates which I am curious about and about which I am
hoping someone can enlighten me.

First, does anyone have a clue why Southwestern Bell here in Austin,
TX wants $60.00 to hookup a phone?  I don't mean hookup as in sending
someone to pull some wire (I think that's $60.00/hour), I mean,
$60.00 so that I can call, request service, am told it'll be available
after such-and-such hour on such-and-such day, and that's that.  I
asked a cust. service rep. about it once and she wasn't able to give
me a very good explanation.  I seem to recall that it involved a
couple of data key operators and maybe one or two quality assurance
folks.

Also, when I moved out of a co-op two years ago, I asked if I could
keep the same number which I had been using.  I was told, yes, if I
wanted to pay to have them pull a wire from the 478 exchange to the
458 exchange (my old number was 478-3813, my current is 458-1770)
*and* I would have to pay extra monthly.  What I am wondering is, how
does the local service work?  Is a city really broken into sections,
where moving a number between them requires a hardware change?

About the long distance pricing: I called MCI and inquired about their
PrimeTime Texas and PrimeTime plans.  These are plans where you agree
to purchase a minimum of 1hr/month of intrastate and interstate long
distance service respectively.  Maybe someone can explain the odd
rates summarized below (what is odd (to me) is that intrastate is
*more* expensive than interstate).

PrimeTime Texas (intrastate)	PrimeTime (interstate)
(rounded down to nearest cent)
$0.37/minute (8am - 5pm)	$0.18/minute (8am - 5pm)
$0.18/minute (5pm - 8am)	$0.13/minute (5pm- 11pm)
				$0.11/minute (11pm - 8am)

I thought is kinda bizarre that I can call California during business
hours for *less* than calling my brother in Dallas after 5pm.  Any
ideas?

Many thanks,

Brendan B. Boerner		Phone: 512/471-3241
Microcomputer Technologies	The University of Texas @ Austin
Internet: boerner@emx.utexas.edu     UUCP: ...!cs.utexas.edu!ut-emx!boerner
BITNET:   CCGB001@UTXVM.BITNET 	AppleLink: boerner@emx.utexas.edu@DASNET#

PCI@cup.portal.com (07/15/90)

Brendan B. Boerner (boerner@emx.utexas.edu) asks the following often 
asked questions:

>First, does anyone have a clue why Southwestern Bell here in Austin,
>TX wants $60.00 to hookup a phone?  I don't mean hookup as in sending
>someone to pull some wire (I think that's $60.00/hour), I mean,
>$60.00 so that I can call, request service, am told it'll be available
>after such-and-such hour on such-and-such day, and that's that.  I
>asked a cust. service rep. about it once and she wasn't able to give
>me a very good explanation.  I seem to recall that it involved a
>couple of data key operators and maybe one or two quality assurance
>folks.

The cost of a phone installation is based on the AVERAGE cost to
install a phone in your rate region.  This is approved by your state
PUC.  Sometimes state PUC's allow a discount if a line is already in.
Sometimes if you accept a working line of a previous resident it is
much lower then a new connection.  Some PUC's allow extra charges for
remote installs.  There are great inconsistencies in rates between
different service areas ... even more variance between states.  It
depends on what each company can get approved by the respective PUC.
Some state PUC's are VERY consumer sensitive ... some PUC's act like a
department of the telephone companies they are supposed to regulate!

Back to the $60 installation.  IF they would charge the same $60 for
an all day install to another resident in your service area (as I
believe they would) it is not really out of line.

>Also, when I moved out of a co-op two years ago, I asked if I could
>keep the same number which I had been using.  I was told, yes, if I
>wanted to pay to have them pull a wire from the 478 exchange to the
>458 exchange (my old number was 478-3813, my current is 458-1770)
>*and* I would have to pay extra monthly.  What I am wondering is, how
>does the local service work?  Is a city really broken into sections,
>where moving a number between them requires a hardware change?

You are asking for a Foreign Exchange (FX) service.  Each CO has it's
assigned prefixes.  Your new phone will really be, for rate purposes
and calling purposes, in you old calling area.  A new wire will not be
installed but you will utilize a trunk on a full period basis.  This
trunk will go between the CO's in your city (yes, cities are broken
into sections or areas based upon servicing CO.)  In Hawaii, the cost
for an Inter Office Trunk is over $8/mile within the same island and
slightly over $2/mile if between CO's on separate islands (don't try
to see a consistency, remember I said it is what the phone company can
get approved).  In addition you must pay for the phone service at the
originating CO and a charge for FX service.  All of these charges are
monthly.

If having your old telephone number is important (businesses may find
it very important), I usually recommend that FX service be compared to
Remote Call Forwarding (RCF).  This would mean your old telephone
number would be set to forward calls to your new telephone number.  It
is a switch function without a local line or instrument (obviously an
inbound calling only service).  This service costs about 1/2 of the
cost of a business line.  You would have to pay toll charges if
applicable between the old number and new number.  Your callers will
be charged for only cost to the old number.

>About the long distance pricing: I called MCI and inquired about their
>PrimeTime Texas and PrimeTime plans.  These are plans where you agree
>to purchase a minimum of 1hr/month of intrastate and interstate long
>distance service respectively.  Maybe someone can explain the odd
>rates summarized below (what is odd (to me) is that intrastate is
>*more* expensive than interstate).

Back to the regulatory bodies!  PUC's regulate Intrastate service and
FCC regulates Interstate service.  The regulations may not always
apply to the Inter Exchange Carrier.  Sometimes IEC's are unregulated
because they are nondominant carriers.  The Local Exchange Carrier is
almost (if not) always regulated on rates in can charge IEC's by the
FCC and PUC (depending whether it is Intrastate or Interstate
service).

In my work (as a carrier) I have seen as much as a 200% to 300%
difference in switch access charges for Feature Group D access between
Interstate and Intrastate service on the same switch!  Then to make it
more interesting, some states are blessed with a monopoly of the LEC
for Intralata service (to all those who complain about GTE as an LEC,
how would you like to deal with them on ANY service within a state!)

I hope this has helped answer your questions.  I am at home and do not
have my Tariffs with me.  Just for Hawaii, between PUC tariffs, GTE
FCC tariffs, FCC Regulations, etc I use up 2 bookshelves.

I might add that it is NOT uncommon for customer service
representatives not to understand the tariffs applicable to the
services they support.  I often get an off-the-wall answer that is
defended by "that is our tariff".  I then get great joy in asking "I
must have missed that rule, could you please FAX me the page it is
on".  The silence on the other end followed by the stammering shows
the great discomfort of being caught. I have yet to get the 1st FAX, I
have 100% success in eventually getting what I asked for and I have
never had the same line pulled twice by the same representative.  (I
accept the reasonable answer of "I am not sure how to do this" or
"price this" ... "let me check it out and get in touch with you".  But
they had better get back to me or I will call them and the supervisor.


Robert Kelley           Internet:   PCI@CUP.PORTAL.COM 
PCI Communications Inc. EasyLink:   62958477           
(808) 599-4724          OnTyme:     INTL.PCI/KELLEY    
FAX (808) 733-2011      SprintMail: RFKELLEY           
SnailMail: 1103 9th Ave, Suite 245, Honolulu HI, 96816 

0004133373@mcimail.com (Donald E. Kimberlin) (07/15/90)

 
 ..In article (Digest v10,iss479) Brendan writes:

>I have two questions regarding local phone operation and one regarding
>long distances rates which I am curious...
 
>First, does anyone have a clue why Southwestern Bell here in Austin,
TX wants $60.00 to hookup a phone?

Yep, it's a charge on the higher fringe of what Telcos nationwide tend
to get for a once-manual, now-automated operation.  It even has
components, like (let's say) $25 for "writing the service order," and
$15 for "wiring on the distributing frame," and $5 for "updating the
directory entry," and so on.  These prices, once established as a
means to hold off rate increases by creating the Telco equivalent of
government "user fees" and "impact fees," have never been reviewed by
PUCs to see if they are still valid.  And we all know who is _not_
about to ask for a review, don't we?
 
>Also... was told ... if I wanted to pay to have them pull a wire from
>the 478 exchange to the 458 exchange ... *and* I would have to pay
>extra monthly. ... how does the local service work?  Is a city really
>broken into sections, where moving a number between them requires a
>hardware change?
 
Well, I sure hope the lady didn't say "pull a wire" across the city.
That would constitute naievete in extremis!  What she described was a
"foreign central office" (within a city; "foreign exchange" between
two cities) line.  The transmission channels already exist; Telcos
will, if you wish, rent you a channel to that other exchange to get
your dial tone from there.  You pay the "service order charges"
(usually higher for a "special service" and a monthly rental for the
extension transmission channel ... and there's usually cute components
in the monthly charge for the "special equipment" they "need" to make
a longer-than-normal loop operate.

Now, here's the dirty truth: The sort of "special equipment" that's
used is the same as is used for many other classes of "phone lines,"
further, it often is not needed.  The most extreme case I know of is
the boundary between Boca Raton, FL and Deerfield Beach, FL.  There,
the two "exchanges" are in the SAME Southern Bell building, and an "FX
line" consists of ONE jumper wire on the distributing frame. BUT, the
two "exchanges" are several miles apart on the long-standing "official
description" of thw two areas.  No matter, an FX there costs (I
recall) about $65 a month ... for 100 feet of wire!

What you pay for a phone line has at best a VERY small resemblance to
what it costs to put any given line in.  The Telco mushes all the
costs together into a heap called the "rate base" and then apportions
out what it thinks you should pay for each thing.  It's a principle
proudly euphemized in Telco-Speak as "Value of Service Pricing,"
spoken of in reverent tones, because Telcos are sure God gave them
that right.  And, they'll fight you into the ground to preserve it.
One study a decade ago found that press, hospitals, police,
broadcasters, residences and business all paid difference prices for
identical wires in the SAME cable!  The real kicker: press paid the
lowest price. The politics behind it are obvious.  Don't let anyone
ever tell you the "phone company" isn't one of the most political
animals in town.
 
>About the long distance pricing ... (describes MCI rate structure)
> ... I thought is kinda bizarre that I can call California during
>business hours for *less* than calling my brother in Dallas after
>5pm.  Any ideas?
 
No "ideas" needed. It's another of the nationwide unrealities of
telephone company rate-making.  State by state, the regulators long
ago found they could look good and keep the Telco's much-watched price
for a local line down by letting INTRAstate short-haul LD charges
rise. It goes back to a point in time when none of us as individuals
hauled off and dialed the phone for just any old thing.  Since we all
became "telephone junkies," the usage has soared, but the protected
rate for the local telco do haul LD in-state remains.  Others, like
MCI, are _required_ to not undercut the "local" Telco on in-state
rates.  Yet, you see what the true costs must be like in the
FCC-mandated (almost) free market of INTERstate rates.  That's the
answer, pure and simple: Another very visible proof that the price you
pay for regulated phone services has little connection to the cost of
the product.

The sooner America wakes up and starts to let it be known it
understands the regulatory "shell game" and ends the silly form of
"regulation" that exists today, the sooner prices will begin to truly
reflect costs.  The Federal government would like to permit local
"dial tone" competition immediately (and several technologies exist to
do so ... right now), but the local Telco lobby is still shouting that
one down. Oh, you have an example right in Texas: ARCO Oil moved its
offices to Richardson, on the fringe of Dallas 6-8 years ago.  Fed up
with GTE "dial tone," ARCO put in a private microwave and imported SW
Bell dial tone to their building in Richardson.  WOW!  Did the Telco
feathers ruffle!  GTE got their "brothers in the cloth," SWBT to shut
off the dial tone. Both got the Texas PUC to say on paper they had
done the right thing.  ARCO dragged the FCC in, saying the dial tone
was only _part_ of INTERstate business, and got an FCC order to turn
it back on. SWBT went to the Federal courts, and only about four
months ago lost on the final level of appeal short of the Supreme
Court.  Doubtful you'll ever get this news in your SWBT bill insert,
but you _can_ put in your _own_ FX if you want ..and for larger
businesses, the technology is not that expensive these days.  If you
want to do it at UT, I know a guy in Austin who can guide you!)

bakerj%mcdphx.UUCP@ncar.ucar.edu (Jon Baker) (07/17/90)

Brendan,

The first question regards the exhorbitant 'hook-up' fee.  Although
establishing service may involve only a few data-entry operators, the
cost to lay wire to your residence is factored in there also.  Even if
it's an existing residence, they need to average the cost out over all
new customers to avoid socking new home owners with a multi-hundred $
bill.  Of course, there's an easier explanation - you WILL pay it,
won't you?

The second question is about maintaining the same phone #.  I'm
surprised they even offered the service.  In the past, US West has not
offered this luxury.  To answer the question, you are most likely
moving from one CO to another CO.  To maintain the same prefix, they
have to lay copper from the old CO to your new residence, or set up an
FX line to the old CO.  Both will cost you $$$ for set-up, and higher
monthly charges (for the extra maintenance).

Lastly, why can you call CA for less than your brudder across the
street... ?  Undoubtedly, the vagaries of supply and demand.


\  /  C r o s s r o a d s  C o m m u n i c a t i o n s
 /\   (602) 941-2005 300-2400,9600 PEP Baud 24 hrs/day
/  \  hplabs!hp-sdd!crash!xroads!bakerj

david@cs.uow.edu.au (David E A Wilson) (07/22/90)

noao!xroads!bakerj%mcdphx.UUCP@ncar.ucar.edu (Jon Baker) writes:

>The first question regards the exhorbitant 'hook-up' fee.  Although
>establishing service may involve only a few data-entry operators, the
>cost to lay wire to your residence is factored in there also.  Even if
>it's an existing residence, they need to average the cost out over all
>new customers to avoid socking new home owners with a multi-hundred $
>bill.

Here in Australia that is exactly how it is done. Back in 1982 the
costs were:

Providing new service: $150 or $15 if only exchange work is needed.
(Handset and line still in place.)

Moving service to new address: $75 or $15 (as above).

By 1985 it had risen to $190/$30 and $110/$30 and in 1989 it 
was $225/$45. (No figure for moving.)

Even though I had to pay the $225 I still think this reflection of the
costs seems fairer.


David Wilson	david@wraith.cs.uow.edu.au

bakerj@ncar.ucar.edu (Jon Baker) (07/26/90)

In article <9999@accuvax.nwu.edu>, david@cs.uow.edu.au (David E A
Wilson) writes:

> By 1985 it had risen to $190/$30 and $110/$30 and in 1989 it 
> was $225/$45. (No figure for moving.)

> Even though I had to pay the $225 I still think this reflection of the
> costs seems fairer.

I don't see how it's fairer.  It would preclude many people from
having telephones.  Is a telephone just a toy for the rich?  It may
not be a 'right', per se, but nobody should be excluded from having a
phone due to exhorbitant hook-up fees.  And, if the government offers
subsidies to lower-income households to hook up a phone, in the end
I'm paying for it anyway.  I'd much rather the money not make the trip
through Washington ... it seems some of it always disappears on the
way :-).


JB