March 4, 2004

SBC Offers to Settle Network Leasing Issue

SBC Offers to Settle Network Leasing Issue

A lifetime of litigation and since the breakup of the Bell System by the courts in 1982 continues. The 'last mile' and the related network elements will continue to be contentious.

The Great Dilemma is quite simple (to describe, that is): How to price which elements of the local loop and the local switching so that competitors can use them and the property of the LECs is not confiscated or over priced.

The regulators/lawmakers want the lower prices for consumers that competition promises

The LECs want a fair price and return for the use of their facilities investment.

Competitors want to pay the lowest price possible and make a profit on the value they add to customers by using these facilities

Consumers don't much care as long as they pay a 'low,' fair price.


This dilemma is created when markets and regulation are stirred together producing an outcome which pleases no one except the lawyers who send their kids to college on the attempts to solve the Great Dilemma.

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