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Date:      Wed, 17 Oct 2001 09:24:27 -0700
From:      "Ted Mittelstaedt" <tedm@toybox.placo.com>
To:        "Louis A. Mamakos" <louie@TransSys.COM>
Cc:        "void" <float@firedrake.org>, "Matt Dillon" <dillon@earth.backplane.com>, <Bsdguru@aol.com>, <hackers@FreeBSD.ORG>
Subject:   RE: Imagestream WanIC-520 interface cards 
Message-ID:  <009501c15728$30ac6f80$1401a8c0@tedm.placo.com>
In-Reply-To: <200110171343.f9HDh9b50003@whizzo.transsys.com>

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>-----Original Message-----
>From: louie@whizzo.transsys.com [mailto:louie@whizzo.transsys.com]On
>Behalf Of Louis A. Mamakos
>Sent: Wednesday, October 17, 2001 6:43 AM
>To: Ted Mittelstaedt
>Cc: void; Matt Dillon; Bsdguru@aol.com; hackers@FreeBSD.ORG
>Subject: Re: Imagestream WanIC-520 interface cards
>
>
>
>>
>> We have been told by our rep at Time Warner Communications that
>those payments
>> are still continuing.  TW (at least in PDX) does not have enough
>voice sales
>> to be able to get on that pig trough and is equally unhappy as we
>are that the
>> RBOC's are propping up what are in effect bankrupt CLECs.
>>
>> I used to have sympathy for the CLECs and their beef that the ILEC's are
>> screwing everyone by not allowing competition.  But not any more - in our
>> market the CLEC's charge about 95% of what the ILEC charges for voice
>> services, so the customers gain nothing on the voice side of the house.
>> Instead, the way that the CLEC's get customers is by giving away Internet
>> service for free.  In short, the call termination payments fund the
>> Internet service, instead of decreasing the cost of the voice service.
>>
>> Basically, the CLEC's have figured out how to use a poor government
>> regulation that needs changing to put their competition out of business.
>> It's no different than what Microsoft does when they use operating system
>> revenue to fund a variety of unprofitable and destructive ventures into
>> software applications like web browsers, web servers, ecommerce apps, etc.
>>
>> The only saving grace is that most of the CLECS are so ignorant when it
>> comes to networking that their Internet service is so awful that at least
>> the good customers are staying away from them for now.
>
>You have much of this backwards.
>
>This whole notion of "reciprocal compensation" for call termination was
>originally put into the telecom tariffs by the RBOCs to prevent competation
>in the local space.  They figured that the call volume would be asymetrical,
>with the CLEC customer calling "the rest of the world" connected to the
>RBOCs.  Thus, they created an unlevel playing field and changed the rules
>of the game.   This "poor goverment regulation" is there solely because
>the RBOCs worked really hard to ensure it would be put there.
>
>Surprise, surprise, a bunch of folks came along and decided that the
>new game was one they could play, and used it to their advantage.  D'oh!
>(And this was sweet, because these same telecom tariffs would be used
>by the RBOCs on a regular basis to whack their customers/competitors,
>with the excuse, "Our hands are tied!"
>

I am perfectly aware of this.

The RBOCs deserved to have those "fines" levied against them for a number
of years, to punish them for attempting to block the CLECs.  However, it's
been long enough for this, and in fact the money from the RBOCs is no longer
being used to increase the CLEC's reach or service area (ie: infrastructure)
and being used by the CLECS to bash each other, instead of bashing the
RBOCS.

The situation is equivalent to Foreign Aid that the US pays to a country such
as Japan.  (which we still do to the tune of millions and millions of dollars
a year)  Japan has long since ceased being a poor relation that needs to be
bailed out.  The reasons for them being paid off by the US have been
fulfilled.
Yet, the payments continue, and the money is being used to free up other
funding that's being spent on political - not necessary - things.

>Live by the tariff, die by the tariff.
>

then there's also the saw about the kid won't never amount to anything if
mommy's apron strings aren't ever cut.

Ted Mittelstaedt                                       tedm@toybox.placo.com
Author of:                           The FreeBSD Corporate Networker's Guide
Book website:                          http://www.freebsd-corp-net-guide.com



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