CLECs were never really able to make any decent money from the get go. By
design in my opinion.
But really, would Wal-Mart be happy about giving up some prime shelf space
for some dollar store product?
It was like Obamacare, some elements looked good on paper.
-----Original Message-----
From: Ken Hohhof
Sent: Monday, December 19, 2016 12:58 PM
To: [email protected]
Subject: Re: [AFMUG] T-Tommy Wheeler staying corrupt to the very end
I don't think the "sharing" thing was ever the real objection. Everyone
talks like they had to let CLECs use their copper pairs for free, but
actually the wholesale pricing was supposed to be set at cost plus a fair
profit. Some of the UNE pricing I saw made me question how a CLEC could
possibly make a profit.
The objection was to exactly what Congress hoped to accomplish with the 1996
Telecom Act, which was to lower the entry barrier for competition in local
access. The idea was that CLECs would initially rent colo cage space in the
CO for their own switch, and lease copper pairs ("unbundled network
elements") from the ILEC. Congress expected that once the more successful
CLECs reached a certain size, they would start deploying their own physical
infrastructure. None of this happened as planned. The ILECs were very
successful in their maneuvering (a lot of it at state level) to put the
CLECs out of business, plus the CLECs mostly didn't ever bury their own
fiber or copper. The whole thing pretty much fizzled. But the big ILECs
wanted to block this attempt to create competition for them. They wanted to
keep the duopoly - 1 telco, 1 cableco per town. You'll notice the cable
companies don't overbuild each other, and the wireline phone companies don't
overbuild each other. I think when the govt broke up Ma Bell, they expected
the RBOCs to build into each others territories and compete for local
wireline customers.
-----Original Message-----
From: Af [mailto:[email protected]] On Behalf Of Seth Mattinen
Sent: Monday, December 19, 2016 1:35 PM
To: [email protected]
Subject: Re: [AFMUG] T-Tommy Wheeler staying corrupt to the very end
On 12/19/16 10:11, Chuck McCown wrote:
The ILECs are focusing on fiber for several reasons:
1) Dramatic loss of land line only customers due to cell phones.
2) Loss of DSL customers to WISP due to long and poor copper.
3) It is a good way to put more rate of return investment dollars in
the ground.
4) Don't have to share it with anyone else.
~Seth
