[geeks] Why I hate Verizon Online

[Lionel Peterson]

>From: Charles Shannon Hendrix <shannon at widomaker.com>
>Date: 2006/12/09 Sat AM 02:16:35 CST
>To: The Geeks List <geeks at sunhelp.org>
>Subject: Re: [geeks] Why I hate Verizon Online

<snip>

>I can only guess that this happens because Verizon is forced to resell
>at a certain price point that let's their competition do this.

Yes, they are required to offer many network elements at reduced costs that (I suspect) don't take into account the investment in the roll-out of new equipment, except as a small portion of the on-going costs and the initial investment.

For example, say Verizon goes out and outfits a CO with the equipment needed to offer DSL in a certain region for, $750,000 (a made up number). By law/regulation, Verizon is forced to offer individual ports on the DSLAM (and associated equipment) at a price that (I suspect) doesn't refelect the 3/4 million dollar investment, instead a fractional, pro-rated, depreciated cost, and the competitor can walk away from the line at any time with no penalty, leaving Verizon to pay off the ports.

Boo hoo for the telcos, but there is no other industry where a company is forced to sell capacity to it's competitor at a discount...

Sorry, but I think the Telco's get a raw deal on that front - if the Telcos have to do this, why don't the cable companies (both are regulated monopolies, but some how the Cable company has avoided such requirements).

Lionel