Telecom Collapse?

Lorell Hathcock lorell at hathcock.org
Thu Dec 4 15:57:22 CST 2008


The classic problem of the ILECs is that they have a government backed
monopoly on the local loops everywhere and they leverage that monopoly to
compete with companies that don't have government backing.

For my $0.02,there are two good options.

1. Eliminate the FCC Universal Service/Coverage funds and let that farmer
pay the full rates for connecting his hog barn.  (If we had pursued this
option years ago, wireless would be much more mature and ubiquitous by now.)
2. Have the government meddle with the ILECs... er, ILEC (singular) and
divide the local loops into a different company that provides a platform for
selling standardized products and services at wholesale rates to all CLECs.
This resulting company would not be allowed to sell to end users just
registered CLECs.

I hate government created monopolies.  It is obvious to the rest of the
world that the US does not follow our own principles of "democracy".  (More
correctly it should be termed a "republic").

With corporate commercial welfare rampant, the free market does not exist.

Lorell Hathcock



-----Original Message-----
From: Frank Bulk [mailto:frnkblk at iname.com] 
Sent: Thursday, December 04, 2008 3:10 PM
To: 'Chris Adams'; nanog at nanog.org
Subject: RE: Telecom Collapse?

The ILEC is the carrier of last resort.  The wireless carrier doesn't have
to build coverage everywhere.  They don't need to serve that hog barn that
requires a 10,000 feet copper loop while playing $17/month.  

The problem is that whether the take rate for POTS is 75% or 95%, the ILEC
still needs to maintain the plant, and capital expenses to maintain the
plant are a killer.

Either the FCC needs to release ILECs from their coverage obligations so
that they can do what CLECs have done and build to the most profitable
areas, or subsidize the plant for both POTS and broadband services.

Frank






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