Path: utzoo!telecom-request Date: 6 May 91 12:23:44 GMT From: Bruce Klopfenstein Newsgroups: comp.dcom.telecom Subject: Re: How is the Cost of Features Calculated? Message-ID: Organization: Bowling Green State University B.G., Oh. Sender: Telecom@eecs.nwu.edu 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 338, Message 3 of 9 Lines: 29 From article , by sichermn@beach.csulb. edu (Jeff Sicherman): > Is it just my paranoid, conspiracy-seeking mind or do the RBOC's > always seem to introduce all these new, fancy services with a monthly > price tag of between $3 and $8. I was under the impression that these > are all tariffed and that revenue must reflect cost with a standard > profit allowance. I attended a recent presentation by a Bell Atlantic representative who explained how the charge for Caller ID was reached. According to him, it was purely market research. That is, through focus groups, telephone surveys, and possibly other techniques, Bell Atlantic found out what people said they would be willing to pay for Caller ID. Based upon their reading of that research, they charge what they feel the market would bear. The perceived value of the service dictates the pricing scheme. I am very interested in other responses to Jeff's question regarding the regulated aspect of pricing. Bruce C. Klopfenstein | klopfens@andy.bgsu.edu Radio-TV-Film Department | klopfenstein@bgsuopie.bitnet 318 West Hall | klopfens@bgsuvax.UUCP Bowling Green State University | (419) 372-2138; 372-8690 Bowling Green, OH 43403 | fax (419) 372-2300