Finance Q&A

Telephone Switching Equipment. telephone stuff ?

Edwards Finance > Phones

Q. am interested in the new ISDN telephone service, nice wide-band phones. Am I mistaken or what? It seems to me these wires have always been able to carry the full amount of data that ISDN does, that it was artificially lowered by the old switching equipment they had, and now, that the new switching equipment can handle it all, they are charging $95 a month per line when that bandwith, on the wires already coming in my house, should already be mine. I don't get it.

A. And another thing, Charging extra for touch tone. This is the biggest rip off they have. They should charge extra for DIAL as Rotary DIAL has to be an option on the equipment they use to switch....touchtone is how everything new talks in their system, rotary has to be converted to touchtone before it goes out.....so it would seem they should charge extra for that, not touchtone. At about $3 a month per line, that is a healthy revenue generator and I bet they could not defend the charge before the PSC if they had to. I think the answer is carried in your question: They had to get all new switching equipment to support ISDN, that stuff is expensive, more expensive than just staying with the old stuff. So although one can quibble the exact price there would seem to be a rational basis for charging for the enhanced services. You're not being charged especially for the wire, that's a tiny fraction of the cost of the service. If you doubt that unhook that wire from their equipment and see just how useful it is. This was mandated by the PUC's (Public Utility Commissions) or PSC's back when the RBOCs were a monopoly (some still are, I know.) When the RBOC's first proposed touch-tone service the attitude was that it was just a fancy gizmo and not really necessary (I guess this would be back in the 1960's.) So the PUC's said: Thou shalt not make the subscriber base subsidize this new gizmo, neither by increasing prices nor by diverting their current payments into upgrading (your central plant) to touch-tone service. So the only choice was to add a small increment for touch-tone service so it was (reasonably) self-funding by those who used the service. Apparently this stands today in many regions. So it's not the RBOC's (regional bell operating companies) who need to defend it before the PUC's, it's the PUC's who would have to defend the continuation of this charge, they mandated it. Perhaps the PUC's believe the surcharge is still valid, you'd have to ask them.

 


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