TELECOM Digest OnLine - Sorted: Re: AT&T Residential Rate Increases?

Re: AT&T Residential Rate Increases?

Rick Blaine (dont@bother.com)
Sun, 24 Dec 2006 07:19:48 -0700

AES <siegman@stanford.edu> wrote:

> What's going on here? Response to more and more people shifting to
> VOIP is to _raise_ their POTS rates? (especially on automated
> features)

> What's the agenda behind this?

Business 101. In a declining market, you raise prices to preserve
profitability (think cigarettes).

It's not just VOIP -- that's more a future threat. It started with big
minute cell phone plans. While the rate of decline has lessened, all
the wireline carriers are continuing to lose physical lines.

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