Path: utzoo!telecom-request Date: Thu, 20 Jun 1991 14:13:11 GMT From: Jim Allard Newsgroups: comp.dcom.telecom Subject: All AOS's Aren't Scum Message-ID: Organization: Equicom Communications, Inc. 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 473, Message 6 of 6 Lines: 124 Since my favorite UNIX afficionado introduced me to the Digest a few months ago, I have been quietly sitting in the background reading the various utterings of respondents, as AOSs and COCOTs in general have been heavily smacked around. While I will agree there are some unethical providers out there, some of us have made a serious effort to provide services which attempt to validate the reasons for the MFJ -- competition. I offer some thoughts of my own as an attempt to balance the picture a bit: Let me begin by clearly stating I would do many of the same things AT&T has done post-divestiture, in an effort to protect my customer base. Great credit must be given to AT&T and the Bell Labs for the technology which allows much of what we do on a daily basis. No one is more impressed with their R&D capabilities than I. Let's not lose sight of the fact that much of that technology was paid for by you and me in over 100 years of a regulated, telecommunications monopoly (with guaranteed rates of return). Not to mention the built-in customer base. 1. Hasn't anyone noticed that AT&T LD rates have dropped dramatically since divestiture? Does anyone really believe they (AT&T) would have done that on their own? If you had a monopoly, would you? Wake up and smell the coffee ... competition among other things have been responsible for more realistic pricing in the LD market. There has also been an increase in charges for local service (not necessarily corresponding but understandable). 2. Anyone who believes there is anything close to a "level playing field" should sit with my operators when someone needs international directory assistance, collect overseas calls and/or connection to non-direct dial countries. No one can do these things except big momma, and she isn't interested in sharing, (not that I blame her). There is a definite advantage on AT&Ts side when these and other services are required. I'd love to have one day's worth of their advertising dollars. I won't bother to discuss the huge differences in what network costs us compared to the "in place" net AT&T has available (paid for by rate payers during the 100+ years they've been around). 3. Every public IXC except AT&T provides 800 or 950 access to their network as a convenience to their customers. AT&T steadfastly sticks to 10XXX as the ONLY means for non-subscribed customer access (or access by their customers from non-AT&T phones). If you owned 200 switches at your hotel chain, would you give guests unrestricted fraud potential? Fact is, it cost us $1500 per switch to allow guests full AT&T capability with fraud protection. We spent the money because some of our clients' guests like AT&T ... go figure, but we believe in service. Interestingly, only 5% of our AOS customers ask for other carriers, a percentage of that for AT&T. We carefully provide instructions for access to the caller's carrier of choice and various other alternative billing methods. 95% of our callers CHOOSE to use us. And yes, we clearly brand our service at the beginning and end of our involvement (which we've been doing since well before it was law). This based on two years of handling greater than 400,000 calls per month. 4. This business of an AOS connecting callers to the AT&T network is a joke. While we can technologically do so, they refuse to take the call, claiming possible fraud and high error concerns as some of their reasoning. It would be a nice service to 'their' customers, and we would have to pay origination charges for the entire length of the call. Their position reminds me of the kid who takes his ball and goes home if you don't want to play by his rules. 5. My company DOES NOT apply any additional surcharges to calls we handle, even though it's legal in many states and for interstate traffic. The same stipulation is in every contract we write. Our rates mirror AT&T's. We guarantee not to charge more than their standard time-of-day discounted rates. In fact, our billing programs round down (not up) to ensure compliance with the policy. Yes, we also issue immediate credit for mis-dialed calls. 6. Until recently (introduction of AT&T's 'new' CIID calling card) there was a major misconception in the minds of the public regarding whose card they had in their hand. There are millions of pre-divestiture calling cards out there with AT&T logos, really issued for the LECs as shared cards. Callers erroneously believe they have AT&T cards. You'll notice they didn't rush to change that 'shared card' perception. AT&T's announced intent is to convert "it's" millions of cards to CIID format by the end of 1991. I for one am very happy about the change. I can't wait to see what will happen when those new card holders find the card no longer works at the hotel/airport/hospital of their choice. This could be the best thing that ever happened to AOS. These callers will soon realize they can get greater flexibility with cards issued by their LEC. They can still use the AT&T network if they want to dial 10288, but my suspicion is they won't want to dial the extra digits. Brand loyalty is great, but most people will default to what is easiest and fastest if the cost and services provided are comparable. I wouldn't throw out my line ID (LEC) card with the comfortable pin just yet. Ohio Bell is making major inroads in the calling card business using just that approach " ... card is accepted by virtually every long distance carrier." Regardless of the belief (and I agree) that 10XXX dialing should be available, reality is that it is not. Is AT&T deliberately designing a card system which will create serious customer dissatisfaction in an effort to pressure aggregators into presubscribing to AT&T? I don't think the last legal shot has been fired on this issue and I hope the public isn't that gullible. I sincerely hope this does not come off sounding like a whining step-child. We expect to be successful or fail on our own merits. If we can provide the service at reasonable costs to the calling public, on a level playing field, I say let the market determine the winners and losers. Keep the politicians out of it, or we'll end up with three LD phone companies about five years from now. That's not what I call choice, and the playing field is far from level. James H. Allard, Jr., Director Operator Services Equicom Communications, Inc. [Moderator's Note: Thank you for sending along a most interesting alternative viewpoint regarding AOS'. I appreciate having you as a reader. PAT]