Re: VCC cost models .... (was Re: Limits on SVCCs)

["Eric W. Gray" <[e-mail]>]

Chuck,

You wrote (in part):
> 
...
> 
> But who provides the underlying transmission systems that support both the
> switched telco services and the Internet?  And why would one expect those
> providers to, in effect, subsidize one service in favor of the other?  Can the
> telcos continue to price their services as they currently do in the face of
> potentially large losses of customers to the (future) Internet?
>

In fact, the Telcos are already moving to change this.  The reason that the
internet rate is cheaper is that the cost for "data" transmission is more
stringently regulated by the government.  The Telcos are arguing that the new
use of the internet to transmit conventional audio and voice as "data" is
justification for lifting this regulation.

> 
> I agree with Joel's "different way of looking" at the issue.  Current service
> pricing models are probably irrelevant and will change drastically as soon as
> the Internet begins to offer significant competition.
>

Is there, doing that...

> 
> Regards,
> Chuck Ludinsky
> [e-mail]
> 
...

--
Eric Gray