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California Orders SBC to Split Phone, DSL Service
An anonymous reader points to this report at overclockersclub.com which begins "The great state of California has ruled that SBC Communications must sell local phone service and broadband service separately. This gives SBC customers the option to change local phone providers and/or choose any DSL company they wish."
They sign contracts with new apartment complexes, new housing developers, even new business centers and offer them a package deal. The providers come out and install only their equipment, phone lines, cable (very cheaply, or even free I might add) and that is the ONLY service you can sign up for. Of course the developers and landlords will make a profit on the customers that sign up. Plus the customer sometimes does get a savings when compared to the cost of each package had you had a choice in the matter. Want COX Cable, but Qwest telephone? Sorry... But we only offer Qwest here. This is more prevalent in newer apartment complexes.
Hmmm.
The great state of California has ruled that SBC Communications must sell local phone service and broadband service separately. This gives SBC customers the option to change local phone providers and/or choose any DSL company they wish.
I had this option when I used Verizon in Bowling Green, OH for DSL. It was nothing but a hassle compared to getting DSL+ISP through Epix in NEPA or cable through Roadrunner or Comcast/ATTBI. Any issue that would come up with the Internet connection would result in fingerpointing at either the ISP or the line provider.
At least with cable there is only one person to blame. Slow speeds? It could be my computer but I doubt it. It's likely an issue w/the local lines or the ISP. I don't have to pay two separate bills. I don't have to call two separate companies when I want to cancel (signing up amazingly enough is dealt with through a central location in my experience).
I find DSL to be nothing but an overly expensive hassle at least in the areas I have lived (I realize that out west they seem comparable to Cable, if not better). I despise Comcast and what they have to done to dominate the local market but at least I can hate one company w/o a doubt rather than having to play catch the monkey if you can w/DSL.
A bit longer article is here at ZDnet from 6/14/2004.
Go Pistons.
that they were selling the benefits to the customer of only having one bill. I can see it now. "We're splitting your bill in two to better meet your needs."
Drill baby drill - on Mars
I could care less who me DSL/local/longdistance carrier is as long as it works reasonably well. If California gets rid of the discount for getting all 3 through SBC it would raise my bill by 40 bucks a month! Sometimes regulation is not worth the taxes we pay for it, and this is one case where I don't think anyone will save money (unless they are willing to put up with a great deal of angst).
At first thought, it sounds like something of this magnitude (atleast in CA) might cause consumers to end up paying more in the long run, but I don't think that will be the case. I just cancelled my ADSL a month ago (but kept local phone service) through SBC because another company just finished running fiber to my neighborhood (offering phone, television, and internet). I think once the DSL side of SBC is required to compete on fair grounds with everyone, they will not only introduce new services (maybe through something OTHER than copper?), but I think it will give companies - not only DSL competition - but other service providers a fair chance to compete.
PS - Company I am getting fiber through is Surewest Broadband. They do have bandwidth caps, but they are not enforced very stricly, and they actually post what their monthly limits are. When you get 10Mbps both ways, you have to expect this. But with the Television service as well as Internet, Surewest so far has been great, and I am glad I made the switch from SBC Internet (and Comcast for television).
While I don't disagree necessarily on the move against SBC.... ...I have to say California is often times a step ahead of the country. A step ahead in mostly wrong, silly, stupid and self destructive ways.
Take the Gmail legislative initiatives here in good old CA. While SBC is for all practical purposes a legal monopoly, Google is not... especially for email. Yet our enlightened legislature still feels the need to regulate it to death. First step in the country, but totaly unnecessary and harmful to a California business known to employ many of the best and brightest.
So a step ahead... yes... we'll go over the cliff before everyone else.
The only way to create a level playing field is for the people who own the wires (SBC) to not be the ones selling DSL. There are a million subtle ways SBC can make life difficult for Covad (and any other third-party DSL providers that enter the market). As long as SBC sells its own DSL service they will have an incentive to do so.
I know this first hand from being in the middle of a he-said-she-said argument between Covad and SBC, with me and Speakeasy in the middle. I tried really hard to make it work, since I genuinely *like* Speakeasy and their customer support so much.
Now I use Comcast internet service. I'm no fan of our local cable monopoly, but they do run a cheap, fast pipe to my house. Even when its clogged up w/ traffic, its twice as fast as my DSL line was. After learning their internet service worked so well for me, I disconnected my phone line and use Vonage for voice service. I can assure you, I was filled with tremendous geek joy when I called SBC and asked them to shut my service off.
A few years ago I signed up for residential DSL with Covad. Since I already had two phone lines into the residence, it was fine to just make one of them the dedicated DSL line.
Unfortunately when the situation changed and I needed to use DSL and voice on the same line, SBC told me it was impossible to do so unless I switched my DSL over to SBC. Needless to say, this pissed me off to no end, because I had three static IP addresses with Covad and their service had been fantastic.
After several hours of screwing around, mistakes, and general incompetence on the part of SBC, I finally got my new account set up. This was immediately prior to SBC's rollout of their wonderful goat rodeo known as SBC/Yahoo service, so at least I avoided that nightmare.
So last year I move to a new house. There is no broadband cable here, and I can't use another DSL provider with my SBC land line service, so I have to go with SBC. SBC is so incompetent that it takes me six weeks to get DSL installed, because their billing system doesn't think that I'm a customer with them. After over a half-dozen lengthy phone calls with tech support, billing, et. al., I finally get them to realize the problem and initiate my service. Needless to say, all of the time I wasted during my work day with this crap is essentially money down a hole.
SBC is a classic example of a local monopoly that is flourishing simply because of a tilted playing field. In the early days of DSL they buried Covad in the residential market by overpromising so that customers would sign up for service with SBC, then wait for months before SBC had the capacity to initiate service.
Splitting phone and DSL service is going to help shake at least some of their complacence in the DSL market, and hopefully real competition from Comcast cable broadband will help as well. SBC is badly in need of a wake up call, and consumers should really benefit from this, provided SBC's competition takes advantage of it.
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