[comp.dcom.telecom] Divestiture was not a mistake

eli@ursa-major.spdcc.com (Steve Elias) (04/03/89)

The current state of COCOTS and the recent rulings regarding default
long distance carriers for pay phones can surely cause one to despair.
With regard to pay phones and AOS, divestiture *is* a joke.

I think it is mistaken to blame divestiture for these problems.  If
our pal Judge Hoo-Haa and his cronies had the public's best interest
in mind, we might see a few reasonable laws.  Allowing crappy AOS
companies to charge exorbitant prices without telling the dialer is
stupid.  There has to be some recourse against these thieves.

I don't think the answer is to allow any one company to monopolize
long distance service.  If the pay phones were required to display
or speak the rates being applied, the problem would be solved by the
free market.  The voice equipment necessary for such a task shouldn't
be too much -- especially for companies which charge megabucks per minute!

sincerely 10333,

steve elias
(eli@spdcc.com)

john@ucbvax.berkeley.edu (John Higdon) (04/04/89)

In article <telecom-v09i0121m06@vector.UUCP>, eli@ursa-major.spdcc.com (Steve
Elias) writes:
> I don't think the answer is to allow any one company to monopolize
> long distance service.  If the pay phones were required to display
> or speak the rates being applied, the problem would be solved by the
> free market.  The voice equipment necessary for such a task shouldn't
> be too much -- especially for companies which charge megabucks per minute!

I agree the choice may not be monopolization by one company, but our
regulators must understand that free market principles do not apply to
pay phones. You cannot shop from phone to phone to find the best deal
or even find one that will work. By its very nature, a pay phone is a
quasi-emergency device. The one you end up in front of is the one you
end up with. If it rips you off, that's too bad. Even in places where
you might conceivably shop around, such as an airport, one outfit has
the "concession" and there is no choice.

An alternative (other than declaring COCOTs a "public utility" item, to
be handled only by the utility) would be to require *all* pay phones to
give a choice of all carriers that are on an equal-access basis in the
area with complete instructions on how to select. Pacific Bell has
had phones like this in airports for years. By limiting the selection
to equal-access, you would eliminate the scummy AOS people.

As it is right now, if it isn't obviously a Pac*Bell payphone, I don't
even slow down. If the call is *really* necessary, I pick up the
handheld.
--
John Higdon
john@zygot   ..sun!{apple|cohesive|pacbell}!zygot!john

les@chinet.chi.il.us (Leslie Mikesell) (04/05/89)

In article <telecom-v09i0121m06@vector.UUCP> eli@ursa-major.spdcc.com (Steve
Elias) writes:
>I think it is mistaken to blame divestiture for these problems.
[...]
>I don't think the answer is to allow any one company to monopolize
>long distance service.  If the pay phones were required to display
>or speak the rates being applied, the problem would be solved by the
>free market.  The voice equipment necessary for such a task shouldn't
>be too much -- especially for companies which charge megabucks per minute!

The solution is actually much simpler than voice equipment.  The services
should be required to connect through the lowest priced LD service
unless otherwise directed (by dialing the access code) by the caller.
Any machine capable of billing a call can easily find the cheapest
rate.  Then they could only gouge you for local services.

Les Mikesell

cramer@ames.arc.nasa.gov (Clayton Cramer) (04/06/89)

In article <telecom-v09i0123m05@vector.UUCP>, decvax!decwrl!apple!zygot!john
@ucbvax.berkeley.edu (John Higdon) writes:
> In article <telecom-v09i0121m06@vector.UUCP>, eli@ursa-major.spdcc.com
> > (Steve Elias) writes:
> > I don't think the answer is to allow any one company to monopolize
> > long distance service.  If the pay phones were required to display
> > or speak the rates being applied, the problem would be solved by the
> > free market.  The voice equipment necessary for such a task shouldn't
> > be too much -- especially for companies which charge megabucks per minute!
>
> I agree the choice may not be monopolization by one company, but our
> regulators must understand that free market principles do not apply to
> pay phones. You cannot shop from phone to phone to find the best deal
> or even find one that will work. By its very nature, a pay phone is a
> quasi-emergency device. The one you end up in front of is the one you

If it's REALLY a "quasi-emergency device", then price is really not an
issue.  Would you object to paying $2 to make a phone call for an
ambulance after a traffic accident?

> end up with. If it rips you off, that's too bad. Even in places where

If it truly "rips you off" (doesn't provide the specified service)
that's quite different from "outrageous pricing".

> John Higdon

My own experiences with COCOTs are mixed.  I recently tried to make
a phone call from two different COCOTs, both owned by the same company,
and as I got closer to the destination caller, the toll charges they
requested went UP.  However, it wouldn't actually accept my coins
to pay the toll charge, so I was able to make the call.  At least
it gave me my money back.


--
Clayton E. Cramer                   {pyramid,pixar,tekbspa}!optilink!cramer
Abandon all hopes of utopia -- there are people involved.

Disclaimer?  You must be kidding!  No company would hold opinions like mine!

rwhite%nusdhub.UUCP@ucsd.edu (Robert C. White Jr.) (04/07/89)

in article <telecom-v09i0124m05@vector.UUCP>, les@chinet.chi.il.us (Leslie Mikesell) says:
> Any machine capable of billing a call can easily find the cheapest
> rate.

This is only true if the machine knows how long you are going to talk,
and by teh time that datum is regestered it's to late to do anything
about it.

Rob.

straka@ihlpf.att.com (Straka) (04/10/89)

In article <telecom-v09i0126m01@vector.dallas.tx.us> optilink!cramer@ames.arc.
nasa.gov (Clayton Cramer) writes:

>X-TELECOM-Digest: volume 9, issue 126, message 1 of 8

|In article <telecom-v09i0123m05@vector.UUCP|, decvax!decwrl!apple!zygot!john
|@ucbvax.berkeley.edu (John Higdon) writes:
|| In article <telecom-v09i0121m06@vector.UUCP|, eli@ursa-major.spdcc.com
|| | (Steve Elias) writes:
|| | I don't think the answer is to allow any one company to monopolize
|| | long distance service.  If the pay phones were required to display

|| I agree the choice may not be monopolization by one company, but our
|| regulators must understand that free market principles do not apply to
|| pay phones. You cannot shop from phone to phone to find the best deal
|| or even find one that will work. By its very nature, a pay phone is a

|If it's REALLY a "quasi-emergency device", then price is really not an
|issue.  Would you object to paying $2 to make a phone call for an
|ambulance after a traffic accident?

All of this sure sounds like a classic "natural monopoly" to me.  A classic
monopoly is where it is "naturally" too expensive for more than one supplier
to provide a particular service.  This is normally due to some geographic,
supply/demand considerations (applies pretty well to the accident reporting
case, above).

Of course, the airport pay phone is a bit of a different animal.  There is
enough demand to support several suppliers here.  It does appear to the busy
traveller, however, that he is facing a slightly less than competitive
situation.  This is due to a real lack of information about the services the
customer is trying to acquire.

Anyway, is sure sounds to me like the real issue here is the abysmal lack of
consumer information. How can true competition (read that as free consumer
choice) exist without free access AND consumer information?

DISCLAIMER:  I work for AT&T, (and may be slightly biased) but I'll be glad to
let the customers decide, as long as they can freely choose with the necessary
information to make an intelligent choice.
--
Rich Straka     att!ihlpf!straka

MSDOS: All the wonderfully arcane syntax of UNIX(R), but without the power.

john@ucbvax.berkeley.edu (John Higdon) (04/11/89)

In article <telecom-v09i0126m01@vector.dallas.tx.us>, optilink!cramer@ames.
arc.nasa.gov (Clayton Cramer) writes:
[Regarding COCOTs]
> If it's REALLY a "quasi-emergency device", then price is really not an
> issue.  Would you object to paying $2 to make a phone call for an
> ambulance after a traffic accident?

In reality *that* call would be free as mandated by tarrifs. What I
really object to is paying $3.50 for a one-minute call from San
Francisco to San Jose to say I'm going to be late. Particularly when
there is no indication that this will be the case.

> If it truly "rips you off" (doesn't provide the specified service)
> that's quite different from "outrageous pricing".

This is a grey area to be sure, but when I call my voice mail for
messages and the tone pad ceases to work midway through the session and
I am forced to simply hang up, leaving my listened-to vs unlisted-to
messages in total disarray, animalistic tendancies come to the fore.
You have to be in this position to appreciate the frustration.

Perhaps if such phones were required to carry a notice e.g.:

"This telephone cannot be used to access voice mail or other DTMF
activated services."

it would save a lot of trouble.
--
        John Higdon         |   P. O. Box 7648   |   +1 408 723 1395
      john@zygot.uucp       | San Jose, CA 95150 |       M o o !