[aclug-L] Re: Monopoly tactics?

[John Alexander <john.alexander@xxxxxxxx>]

Here's the funny part:
I ordered Business Class DSL today (32 static, 29 usable, thank you very
much), got the same promo, which includes free connection hardware.

ja

> -----Original Message-----
> From: ssaner@xxxxxxxxxxxxxxxxxxxxx
> [mailto:ssaner@xxxxxxxxxxxxxxxxxxxxx]On Behalf Of Steven Saner
> Sent: Friday, April 28, 2000 10:36 AM
> To: discussion@xxxxxxxxx
> Subject: [aclug-L] Re: Monopoly tactics?
>
>
> You pretty much have it figured out :-/
>
>
> On Fri, Apr 28, 2000 at 08:57:02AM -0500, Bates, Rod wrote:
> > 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
> >
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