Path: utzoo!news-server.csri.toronto.edu!cs.utexas.edu!sdd.hp.com!zaphod.mps.ohio-state.edu!rpi!bu.edu!telecom-request From: cyberoid@milton.u.washington.edu (Robert Jacobson) Newsgroups: comp.dcom.telecom Subject: Re: Local Competition Comes to Illinois Bell Message-ID: Date: 5 Mar 91 17:40:57 GMT Sender: news@bu.edu.bu.edu Organization: Human Interface Technology Lab, Univ. of Wash., Seattle Lines: 22 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 11, Issue 182, Message 9 of 10 Given that there are unavoidable overhead costs associated with colocation, who picks up the tab? And who sets it? Do these new providers of local service pay any sort of access charge, or are they (1) creamskimming the business market and (2) providing telcos with a foil for arguments that will deregulate "competitive" (i.e., read "business") services and put the greater rate burden on residential customers? In California, the energy utilities were prodded by neoconservative regulators into permitting competition, too. The net result was much lower rates for very big customers (the $10 million+/year sort) and much HIGHER rates for the "core" customers, those unable to avail themselves of competitive services (who don't want the overhead of serving smaller customers). Even small business, which finds itself in a neither fish nor fowl situation pays -- in fact, in many situations, it pays the most. Local competition has a nice ring. Like the cash register's... Bob Jacobson