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From: deej@IUS2.CS.CMU.EDU (David Lewis)
Newsgroups: comp.dcom.telecom
Subject: Re: Pac*Bell /ATT Calling Cards
Message-ID: <1133@ius2.cs.cmu.edu>
Date: Thu, 30-Apr-87 11:17:35 EDT
Article-I.D.: ius2.1133
Posted: Thu Apr 30 11:17:35 1987
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In article <883@xanth.UUCP>, kent@xanth.cs.odu.EDU (Kent Paul Dolan)
writes...

>I suggest (<---- Opinion marker! Keep your flames to yourself! ;-) that the
>thing to do now is to find a not-terribly-disruptive way to introduce phone
>competition at the local level, since we have proved it works well nationally.

Sounds like a nifty idea -- in fact, I'd love to be the person to start
it...  The problem is that the local loop remains a monopoly for much the
same reason that electriity, gas, water, and now CATV are monopolies -- you
have to run wires through the street.  (Historical reasons for the
establishment of monopoly local loop service omitted for brevity -- this is
just why no one's begun competition yet).  PUCs wouldn't take too kindly to
another phone company tearing up the streets.

In addition, the capital costs of local loop service are pretty steep -- I
believe something like 40% of the assets of the BOCs are in the wiring
plant.  Starting up a competitive local telco with that kind of entry
barrier, and a very shaky prospect of success, is not a good business
venture.

Of course, there are all the problems of mandated interconnection to provide
universal service, compatibility, and so on; the legal battles with the FCC
and BOCs alone would probably be enough to prevent anyone from trying it.

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