Word: bellsing
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That may well be, but the Bells complain that it's not a fair fight. The way they see it, by requiring the Bells to lease access to their networks at a price that doesn't cover the cost of running and maintaining them, the states are essentially forcing the...
"It makes no economic sense for the competitors to invest capital at these prices," says Randall Stephenson, chief financial officer of SBC Communications. "We still maintain the network and provision it, and the cost structure doesn't change. From a financial perspective, the model is unsustainable." As long as they...
The Bells' crying and moaning might elicit more sympathy if, over the past six years of deregulation, they had delivered on their promises to compete against one another for local service. During that period, they have incurred repeated fines by federal and state regulators for not opening their networks. "They...
Many in the know, including staff members at the FCC, share Holland's incredulity about the Bells' dire warnings. Earlier this year, the Bells' critics point out, the U.S. Supreme Court ruled that the resale pricing methods used by regulators are appropriate, guaranteeing the Bells their costs plus a reasonable...
"This is not science. It's a policy goal," says Eli Noam, director of the Columbia Institute for Tele-Information in New York City. "It's pretty clear that, given the head start of the Bells, it's difficult for someone to come in without a little regulatory weighting of...