[aclug-L] Monopoly tactics?

["Bates, Rod" <Rod.Bates@xxxxxxxxxxxxxxxxxx>]

Whoooooa!

Clint Brubakken wrote: 

>If you sign up before April 30, and you agree to sign a one year
>contract and use SWBI, installation ($200) and isp service is free
>($10/month) 

(and others said things to the same effect.)  

So as I understand it: 

1. You need DSL service and ISP service
2. It costs somebody to provide ISP service
3. There is competition in the ISP business
4. SWB is the only game in town for DSL.
5. If you take ISP service from SWBI, then SWB will actually
    charge less for DSL as if you get ISP service from Southwind.
    (same monthly, no installation) 

This sounds like a classic monopolistic cross subsidy.  
Cut your prices below your costs (actually prices cut to zero 
for SWBI ISP service) in a businessline where you have 
competition.  Make up your losses from a different line of 
business where you have none.  Southwind has no comparable
source of revenue they could use to make up comparable
losses. Do the regulators know about this?  Have I missed
something? 

Rodney Bates 

-- This is the discussion@xxxxxxxxx list.  To unsubscribe,
visit http://tmp2.complete.org/cgi-bin/listargate-aclug.cgi