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- Path: sparky!uunet!decwrl!csus.edu!netcomsv!boo!uttsbbs!john.navas
- From: john.navas@uttsbbs.uucp (John Navas)
- Newsgroups: comp.dcom.modems
- Subject: Re: Modem tax back
- Message-ID: <998.48.uupcb@uttsbbs.uucp>
- Date: 27 Jul 92 22:20:00 GMT
- Distribution: world
- Organization: The Transfer Station BBS, Danville, CA - 510-837-4610/837-5591
- Reply-To: john.navas@uttsbbs.uucp (John Navas)
- Lines: 40
-
- > Modems change the usage picture a lot. When I use a modem, it's
- > almost always for far longer than if I were using the phone to call
- > a friend. If you have lots of customers using modems where they
- > used to use only the phone, the phone company has to purchase more
- > of that expensive equipment to insure that _all_ customers continue
- > to receive their expected levels of service. So, more expensive
- > equipment, higher tariffs for service. But why should a customer
- > who only uses the phone 10 minutes a day subsidize other customers
- > who are using their modem 2 hours a night?
-
- There's nothing special about modems here. I know of a GT&E study
- that showed *wide* disparities in non-modem telephone usage -- as in
- the case of a lady that used the local telephone as a child monitor
- for hours each day.
-
- > The answer, in my opinion, is to do away with flat-rate pricing,
- > and go to a strictly usage-based one. If you use 10 minutes of
- > service, you pay 50 cents; if you use 2 hours, you pay $6.00 (at 5
- > cents per minute.)
-
- The problem is that local usage charges would inevitably increase the
- basic cost of service (since billing costs would rise) and discourage
- local calls, thereby decreasing the utilization of expensive local
- loops (which, unlike switches, are dedicated to particular lines) and
- further increasing costs. As it happens, the investment in local
- loops outweighs the investment in shared central office equipment on a
- per subscriber basis (even when typical modem usage is factored in).
- The present system actually makes a great deal of sense.
-
- What doesn't make a great deal of sense are relatively high long
- distance charges. The total real cost of a call across the country is
- only slightly greater than the total real cost of a call across the
- street. Fortunately, competition in the long distance market has
- significantly reduced the disparity in pricing, but the artificial
- distinction between local and long distance service will keep it from
- disappearing entirely.
-
- Best regards,
- John
-
-