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ross7

join:2000-08-16

reply to Markff

Re: Covering cost vs profit

said by Markff :

I don't know what things are like in the US but up here we have a duopoly running the market. Their are caps on foreign investment and to properly invest in new networks there needs to be a proper climate for investment. When the incumbents built their networks they had guaranteed ROI in government protected monopolies. These UBB charges will go straight to the incumbents profits, reduce make most Internet plans indistinguishable and reduce independents subscriber base and revenues. How can they then go and ask for millions for equipment? Add to that the incumbents can offer lower promo rates than the independents so while prices now many be high enough to justify investments, the risk that the incumbents will lower their prices to wipe out the competition is too high. For threes to be a real market the foreign investment rules need to be lifted or infrastructure separated from the retailers.

Right on the dime! Superior, lucid post! A pleasure to read.

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