TELECOM Digest OnLine - Sorted: Re: Broadband Competition Must Surely be Working

Re: Broadband Competition Must Surely be Working

hancock4@bbs.cpcn.com
24 Aug 2005 13:28:19 -0700

Robert Bonomi wrote:

> My DSL circuit is carried on a wire-pair that is nearly 50 years old,

That's nice. But a lot of old loop plant was replaced, in whole or in
part. The Bell Labs history talks extensively about the local loop
and technological improvements made to it through the 1970s through
the use of concentrators and the like. This newsgroup has had
discussions of more modern technology.

> There *IS* a third alternative. Separate the 'content' from the
> 'delivery infrastructure'.

That brings back regulation. We broke up the Bell System to get away
from regulation and to go to competition.

It is very common in the marketplace for providers to bundle services
and products. Many times we take it for granted and never think
about. For example, most supermarkets and shopping centers today
(outside downtown) provide free parking. What that really is is that
their cost of building and maintaining a parking lot is passed on to
the customers. It's bundled in. They could lower their prices
(slightly) if they made people pay to park instead. Sports arenas
tend to charge people (and charge dearly) to park. Which one is a
preferable system? Should the govt dictate to one or the other?

Many stores also sell their own house brand. If you like a particular
house brand, you may only get it at the associated store, not at any
other store. If you like WalMart's t-shirts, don't look for them at
JCPenney. That's bundling.

In many cases, there is a blurred line between "content". Should
every customer choose their own automobile tires and radio on a new
car? Should an airline not provide those free magazines at the seats?
Should a doctor's office not provide magazines in the waiting room?
All of those are bundled services and supposedly could be isolated
out.

So, if a telecom provider wants to bundle services, why shouldn't it?

Otherwise we're back to the Bell System and we must wait for the
government to tell us what we may and may not have. As an example,
the Bell System proposed its first cellular (called AMPS then) test
system many years ago. It took the FCC over a YEAR to grant
permission.

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