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Re: What do we mean when we say "competition?"

  • From: Matthew Crocker
  • Date: Thu Nov 17 08:10:10 2005


Windows 98 price (in 1997) -> $209
Office 97 Standard (in 1997) -> $689
Windows XP price (now) -> $199.
Office 2003 (now) -> $399.

Verizon Retail 768k DSL, $14.95/month (includes everything)
Verizon Wholesale 768k DSL, $13.95/month + DS3 ATM + IP + support + e- mail
Verizon CLEC 2W DSL Conditioned loop, $15-18/month + COLO + DSLAM + Backhaul + IP + Support + e-mail

You can't say that Verizon isn't selling DSL below their cost and using monopoly POTS revenue to subsidize the extermination of competition in the DSL market.

Now, granted the CLEC can use the 2W DSL conditioned loop to run ADSL2 + and POTS and sell for more $$. Unfortunately in todays era of Wal*mart shoppers people buy on price alone.

The problems most people have with microsoft's
monopoly status have nothing whatsoever to do with the
price of the software which forms the basis of their
monopoly (windows + office), but rather their
willingness to use the profits from them to subsidize
other losing ventures to drive out other competitors.
Exactly,

Verizon is using the profits from the monopoly to subsidize losing ventures

-Matt

--
Matthew S. Crocker
Vice President
Crocker Communications, Inc.
Internet Division
PO BOX 710
Greenfield, MA 01302-0710
http://www.crocker.com





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