On Monday, the FCC, in a 3-2 decision, declared that phone companies are allowed to bundle phone and internet access and are not required to sell internet access ala carte.
The FCC's two Democrats, who dissented to parts of the ruling, cautioned that the agency's decision could restrict the ability of consumers to purchase DSL service alone or gain access to Internet telephone service. "If it is permissible to deny consumers DSL if they do not also order analog voice service, what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone?" Commissioners Michael Copps and Jonathan Adelstein said in a joint statement. "What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for" Internet phone service, they added. (src: WSJ)
It is this thinking that is going to drive phone companies out of business. I switched to VoIP years ago and I have never looked back. It is an added benefit that with RoadRunner and Vonage I don't pay SBC a single penny. Phone companies who think they can maintain a monopoly on phone service by bundling DSL are sorely wrong.
In some markets DSL has a much larger footprint or even a monopoly on broadband internet access. In these markets, bundling may be considered an anti-trust violation and perhaps some regulation is necessary. However, in the larger markets, DSL competes with cable modems, fiber and wireless and the phone companies cannot afford to refuse service to the customers with alternative voice service.
So I agree with the democrats, on the FCC Panel, that phone companies should not bundle internet and voice services exclusively.
The marginal cost of voice services once the DSL copper is in place is almost $0, so I can understand how the bundle may be offered at a very attractive price. However, customers should not be required to take services they don't want.
If you have a phone line from an ILEC They will list that number in the phone directory. To get out of the listing most phone companies require a MONTHLY fee to keep your listing private! If you didn't want the phone service or the listing to begin with... It is just absurd.
I had a phone company tech in the office yesterday and he noted that they were not offering any VoIP services because of the expensive infrastructure. How silly. I did not point this out to him, but the expensive Adtran channel bank he was working on, valued at well over $1000, could be completely replaced by the free linux box sitting behind him on the floor, running Asterisk.
When will phone companies get it?
