[comp.dcom.telecom] Bypassing the Local Telco

john@zygot.ati.com (John Higdon) (12/03/89)

A topic that has been on the back burner lately is telco bypass. This
is what happens when an entity (usually a large business) determines
that the local telco cannot efficiently meet the business'
communications needs and the company purchases or leases the required
equipment to "go around" telco and connect directly to their long
distance carrier or to their other branches or buildings. This may be
done because telco rates are high, or because the telco cannot
provided needed services.

The reason this is a concern (or at least has been in the past) is
because when businesses start leaving the fold, telco revenues decline
and they are forced to make up the difference elsewhere, usually from
the residential and small business customer.

Why am I bringing this up? Because I have a real concern about the
future of telephone service in California. While reading about the
latest offerings of CLASS and ISDN services in other parts of the
country, it makes a Californian feel like he is living in a
third-world country. No CLASS, no ISDN, and antiquated CO switching
equipment are things that will drive many major California businesses
to bypass. Add to that Pac*Bell's pricing structures (high, unless
they're vulture pricing to drive out competition), and you have a
climate that isn't too attractive as far as reasonable cost,
technically up to date telephone service is concerned.

Part of this, IMHO, is due to the fact that GTE in California is so
bad, making Pac*Bell look good. Californians are, for the most part,
relieved that they have (with Pac*Bell) reasonably good basic service
(even if it is expensive). If, on the other hand, GTE were to be an
aggressive, advanced telco, you would probably see Pac*Bell get off
its behind and join the twentieth century.

Oh, BTW, the reason for Pac*Bell's stoginess is not lack of money.
Since the breakup, Pacific Telesis has been turning in record, almost
obscene, profits.
 
        John Higdon         |   P. O. Box 7648   |   +1 408 723 1395
    john@zygot.ati.com      | San Jose, CA 95150 |       M o o !