IP: "decreasing revenues"

[David Farber <dave () farber net>]

> Date: Fri, 20 Apr 2001 13:55:25 -0400 (EDT)
> From: "Mike O'Dell" <mo () ccr org>
> To: dave () farber net
> Subject: "decreasing revenues"
>
> (dave, you can redistribute this)
>
> there's more than a bit of hand-waving going on here.
>
> while the ilecs complain that it's too easy to be a clec
> and therefore get recip-comp, thereby reducing their revenue,
> what they don't mention is the *huge* amount of money they
> get paid for the T1s that are used to hand-off all those calls.
>
> firstly, most ISPs are not clecs, but in a competitive world,
> they certainly shop around for who can give them a handful
> of T1s with ISDN-PRI at the best cost.  that almost always
> involves both the cost of the T1 entrance facility and then
> the PRI service isn't free, either.  and the ilecs sell
> a *zillion* of those T1s because none of the clecs have
> enough inter-office trunking to carry the aggregate load.
>
> the other thing not mention are the scads of T1s and T3s being
> used for dedicated internet connectivity and acquired mostly
> from the ilecs.  this is literally billions of revenue they
> would have never seen without the internet, so in the global
> sceme of things, recip-comp is pretty small potatoes.
> the real value in killing recip-comp is to further whack the
> clec revenues and hasten the obvious result.
>
>         -mo
>         resident crank
>         Center for Chaotic Repeatability



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