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Competition sends phone rates up
From: David Farber <dave () farber net>
Date: Wed, 12 Apr 2006 13:29:11 -0400

Begin forwarded message:

From: Allen Firstenberg <people () addventure com>
Date: April 12, 2006 9:53:30 AM EDT
To: David Farber <dave () farber net>
Subject: Competition sends phone rates up


For IP if you wish.  Perhaps someone can explain the economics of this.

http://www.pressconnects.com/apps/pbcs.dll/article?AID=/20060412/ BUSINESS/604120325/1002

N.Y. regulators approve telephone rate increase

About halfway though, we see this gem of a paragraph:

"The commissioners and PSC staff members said the companies need the 'flexibility' to raise rates because they're losing customers rapidly to wireless phones, cable companies and other competitors. Verizon has lost 3 million customers in the past five years and Frontier has lost 18 percent of its customers in the last three years, according to the commission."

Aren't we always promised that competition should lower prices?

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