Path: utzoo!news-server.csri.toronto.edu!cs.utexas.edu!usc!zaphod.mps.ohio-state.edu!unix.cis.pitt.edu!dsinc!casbah.acns.nwu.edu!nucsrl!telecom-request From: cyberoid@milton.u.washington.edu (Robert Jacobson) Newsgroups: comp.dcom.telecom Subject: Re: Cable TV Companies Enter the Telephone Business Message-ID: Date: 5 Mar 91 17:47:43 GMT Sender: news@casbah.acns.nwu.edu (Mr. News) Organization: Human Interface Technology Lab, Univ. of Wash., Seattle Lines: 16 Approved: Telecom@eecs.nwu.edu X-Telecom-Digest: Volume 11, Issue 182, Message 10 of 10 Originator: telecom@delta.eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu Nntp-Posting-Host: hub.eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu I'm sorry, perhaps I missed it, but who has refuted the argument that the local telephone monopoly does indeed allow for rate averaging and holding down local rates? In eight years of telecom policy work, I never heard a convincing argument to the contrary ... and, in fact, energy regulation has proven precisely the opposite. Throughout California, the state with which I am most familiar, residential and commercial (small-business) customers are paying billions more in gas rates so that industrial customers can be cajoled away from "competitive options" (many of which they created, for just this purpose) with lower rates. Competition just means more costs for the "core customers" who can't get access to real alternatives. I don't see cable rushing to hook up the Aunt Minnies, or you, or me. Bob Jacobson