Re: BellSouth Monopoly Case Moves Forward

[Clint Wiley <cwiley@...]

>The FCC is counting UNE-P (ILEC switch) as facilities-based competition.
>It is legally so because the CLEC is technically outsourcing its switching
>to the ILEC on a component basis, rather than reselling ILEC *service* per
>se, but that's still a legal fiction.  The ILECs are also crying in their
>beer over UNE-P, though they're getting the business at above-cost rates,
>so it's not exactly like they're losing money along the way.  What they
>lose by having CLECs as agents is account control, and the ability to
price
>line an unregulated monopoly (which they generally didn't have in the old
>days anyway).

The other thing they lose is access revenue, which I think is the real
reason they are crying in their beer.  They make money on switching and in
most states they still make out pretty well on loops, but lost access is a
hard pill for them to swallow.

Clint
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