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From: randolph@cognito.Eng.Sun.COM (Randolph Fritz)
Newsgroups: comp.org.eff.talk
Subject: Re: Big Brother charging for modem use?
Summary: A bit on service pricing
Message-ID: <9019@exodus.Eng.Sun.COM>
Date: 4 Mar 91 16:35:23 GMT
References: <7X9kw3w163w@bluemoon.uucp> <1991Mar2.023716.13851@csn.org> <1991Mar4.021434.761@ncsu.edu>
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If pricing actually followed usage, you would actually pay a very high
monthly flat rate, and a very small usage charge; most of the cost of
the network is in the "last mile" of wire and the local office
equipment.

As tariffs (rate schedules) were set before ATT broke up, long
distance was charged much higher than cost, and local service lower.
Since, at that time, the majority of long-distance service was
business-related, national and international business users were
carrying the costs of the network.

As tariffs are currently set, I would guess that, at this point, it is
local business users who actually carry most of the cost of the
network.  The local access charge is a reflection of the lost
long-distance subsidy; if the local telcos had their way it would be
much higher.

   nd t
 ou    ui
R Press  T  __Randolph Fritz  sun!cognito.eng!randolph || randolph@eng.sun.com
 ou    ui     Mountain View, California, North America, Earth
   nd t