*BSD News Article 42179


Return to BSD News archive

Xref: sserve comp.sys.powerpc:33730 comp.sys.intel:31200 comp.unix.bsd:16062 comp.unix.pc-clone.32bit:8108 comp.unix.sys5.r4:9174 comp.unix.misc:15912 comp.os.linux.development:23257 comp.os.linux.misc:34799 comp.os.386bsd.development:3133 comp.os.386bsd.misc:5241 comp.os.misc:3765
Path: sserve!newshost.anu.edu.au!harbinger.cc.monash.edu.au!msunews!caen!hookup!news.mathworks.com!news2.near.net!info-server.bbn.com!SNIT.BBN.COM!fgoldstein
From: fgoldstein@bbn.com (Fred R. Goldstein)
Newsgroups: comp.sys.powerpc,comp.sys.intel,comp.unix.bsd,comp.unix.pc-clone.32bit,comp.unix.sys5.r4,comp.unix.misc,comp.os.linux.development,comp.os.linux.misc,comp.os.386bsd.development,comp.os.386bsd.misc,comp.os.misc
Subject: Re: X on dial-in
Date: Mon, 6 Feb 1995 17:34:07 LOCAL
Organization: Bolt Beranek & Newman Inc.
Lines: 81
Message-ID: <fgoldstein.148.002E662C@bbn.com>
References: <3f44s2$jqm@maverick.maverick.tad.eds.com> <D36ry6.4H3@kerberos.demon.co.uk> <D3A5Iu.pD@park.uvsc.edu> <fgoldstein.131.001DC8B4@bbn.com> <D3C4Bp.I46@park.uvsc.edu> <fgoldstein.135.00237A26@bbn.com> <D3Fp3y.1EI@park.uvsc.edu> <fgoldstein.145.00
NNTP-Posting-Host: snith.bbn.com
X-Newsreader: Trumpet for Windows [Version 1.0 Rev B final beta #4]

In article <3h5tvh$a2t@park.uvsc.edu> Terry Lambert <terry@cs.weber.edu> writes:
>The cable companies have no back channel.

Old cable plant has no back channel.  And I generally dismiss "data over 
cable" as pie-in-the-sky speculation, for a variety of reasons.  BUT lately 
we're seeing a new twist.  In the U.K., there's a major cable TV company 
called "NYNEX".  They offer more than video... it's genuine local telephone 
competition.  I think US West is there too.  (Why do you think they invest so 
little in their home turf?  The grass looks greener...)  So telcos have the 
chance of getting competition from other telcos, buying up cable companies and 
using their rights-of-way to install two-way plant.  The courts are starting 
to allow it.  And even an probably-idle threat is often good as a threat.

>Whatever you think of their accounting practices, those practices
>have resulted in the fact that they own the wires and you do not.

>The entire crux of my postings on this subject is the dichotomy
>between what customers want to buy and what companies want to sell.

Ah, but you miss the beauty of it.  Telcos don't _control_ what they own.  In 
most states, they're subject to regulation by politically-sensitive 
commissions.  And if that fails, there's the legislature.  Here in MA, we had 
unlimited free directory assistance for years because one pissant legislator 
made it his holy crusade and had it made a law, above regulators' reach.  
Eventually NYNEX bargained for a 10-call allowance.  Likewise, mandatory 
measured service for residence is such a hot button that most state regulators 
or legislators (it only takes "either/or") will respond to pressure to prevent 
it.  Not every state, but it has happened over and over.

It's not DOSBS ISDN that they're upset by.  They see modems as a revenue 
source, and that's POTS.  They see teenagers as a revenue source, just talking 
as they do, and that's POTS.  They don't care how you use their networks.  
They just see revenue.  And regulators will tell them how and where they will 
raise it.  I personally have appeared at Mass. DPU hearings.  Too many people 
complain on the net when they should be complaining where it matters!

>...The first is that there is not inter-LADA routing.  This is precisely
>what US West has been offering in Utah for four years now.  In the
>simplest terms, it means that you must involve a middleman to get
>point-of-presense on the net, and that that middleman must be in
>your same "telephone exchange" (LADA), or you are screwed to the
>tune of about $800/month.

Bell telcos (not "independents") are prohibited from inter-LATA (LADA is a 
Russian car) connections, but they are trying to get that overturned in 
exchange for a more competitive local environment.  Of course they want only 
token competition; this is a big battle among lobbyists in Washington right 
now. 

>That's fine for you as a service provider, but sucks if you are
>a customer in a low demand area.  Just as some customers in low
>demand areas still have pulse dialing to put up with.  There are
>still economies of scale involved, and they will dictate the
>equipment that gets installed.  As a provider (middleman), you
>make the choice in your arrangement of which LADA's to point of
>presence in and which get "snubbed".

Actually, as an inter-LATA provider, we need only hook up one POP in 
each LATA and we have access for 3-6c/min to almost everyone in the LATA 
for dial services.  Leased lines are awfully costly, though, due to
the "three segment" pricing.

>The second is that eventually, this type of usage will reach
>saturation, and more intra-LADA loops will be required.  And rates
>will go up to pay for this.  Saturation in this direction is an
>intrinsically bad thing, as it removes the distinction between
>intra- and inter-LADA routing.  Basically rasing the price of
>intra-LADA routing in the long run -- the price of "subsidized"
>rates.

The marginal cost/minute of LOCAL intra-LATA calls is under a penny
per minute for almost all cases.  The marginal cost/minute for TOLL 
intra-LATA calls is under a nickle a minute in almost all cases.
Measured usage rates are almost always a lot higher; it's a pure profit
item for the telcos, an artifact of non-cost-based monopoly pricing.
Since the monopoly is only slightly eroded, we still depend on regulators,
who have competing interests to balance.  Squeaky wheels and all that jazz...
___
Fred R. Goldstein   k1io    fgoldstein@bbn.com
Bolt Beranek & Newman Inc., Cambridge MA  USA   +1 617 873 3850
Opinions are mine alone; sharing requires permission.