[comp.dcom.telecom] Who is responsible for COCOTS?

ms6b+@andrew.cmu.edu (Marvin Sirbu) (04/06/89)

You don't need divestiture to have a problem with COCOTS.  You don't even need
facilities based competition.  All you need are:

1) Authorization of resale of long distance, with no price regualtion for
resale carriers.

2)  Authorization to property owners that they may choose the AOS operator of
their choice, and receive whatever kickback that operator wants to give them.

Given these two propositions, both of which are strictly within the domain of
the FCC, you can create all the problems we have seen with AOS.

The solution therefore, is also within the domain of the FCC.  Either

a)  eliminate resale.  This of course would eliminate Telenet, Tymnet,
Compuserve and all other value added network providers.

b) compel the property owner to contract with only the lowest cost service
provider (likely to lead to low level of service quality.)

c)  limit the level of kickbacks to property owners, thereby reducing
(partially) the incentive for high AOS prices; or

d)  put price caps on what AOS operators can charge.

e) mandate that all carriers be reachable from every payphone and educate
customers to choose the lowest cost carrier.

f) do nothing.

I vote for d).



Marvin Sirbu
Carnegie Mellon University
internet:  ms6b+@andrew.cmu.edu
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