From: "Perry E. Metzger" <pmetzger@lehman.com>
Date: Sun, 14 Nov 93 14:33:59 PST
To: "George A. Gleason" <gg@well.sf.ca.us>
Subject: Re: Should we oppose the
In-Reply-To: <199311131105.DAA01673@well.sf.ca.us>
Message-ID: <9311142128.AA07122@snark.lehman.com>
MIME-Version: 1.0
Content-Type: text/plain



"George A. Gleason" says:
> You ask, "why have telecoms prices been declining for years?" and cite
> overseas calls as an example.  In fact, the actual cost of local service has
> gone up over 240% since deregulation, according to a detailed research
> report a friend of mine is about to publish.  

What has happened is that the price the consumer sees has gone up.
AT&T used to subsidize local service with long distance service --
this cross subsidy has ended. Local service is not deregulated
anywhere in the U.S., so your friend's study is meaningless.

Long distance prices have dropped dramatically, even taking subsidy
elimination into account. Competition works, George. Fabian socialism
is what doesn't.

Perry