Re: Portability Issues [TELECOM]

On Mar 6, 12:31 pm, Fred Goldstein
<fgoldstein.SeeSigSpamb...@xxxxxxxxxx> wrote:

Just to add some detail... There are technically two types of rate
centers, although the distinction rarely matters. Some metropolitan
areas have a "major" and "minor" rating point. The 11 Chicago zones
share a single major rating point and have separate minor rating
points. . . .

Philadelphia has had four 'zones' which it's had for many years and
are listed in the phone book. However, for local calling, the message
unit (now "measured service") rates break down by exchange. For
example, HAncock4 in zone 3 has different rates than CHestnut Hill 7
in zone 3. [In recent years Verizon has consolidated some of these].

To this day, the phone book goes into detail about measured service
costs to each exchange district. The charts are long now since there
are so many exchanges within a district.

In the past, long distance toll charges were based on mileage step
charts, and were fairly fine-grained with low mileages. That is, rate
step 1 might have been 1-10 miles, rate step 2 10-25 miles, and
gradually building up. I think some intra state toll charges are
still defined this way, but other long distance is now flat rate
regardless of distance.

[For many people, the change to a flat rate system _increased_ their
toll costs because many people made short distance toll calls at a
rate lower than the national flat rate. So for people who called
coast-to-coast, 25c/min was a great deal, but for people who called
across the river and paid 5c/min, the 25c/min was a steep increase.]



***** Moderator's Note *****

Fred,

I disagree that charing for distance is obsolete: although I'll
stipulate that distance per se is no longer an accurate indicator of
circuit cost, what other criteria could be used?

"Costs" were always a rough way to determine telephone rates. Rates
tended to based on what the PUCs and FCC decided would be "fair",
provide for universal service, and generate an adequate return. Back
in the days of renting telephone sets, premium sets like Trimline and
Princess were at an extra charge. I doubt the sets cost the company
that much more to make, rather, they were seen a high-profit source.

One reason for tolls is to ration out scarce or expensive facilities.

* Flat rates are a disincentive for maintenance.

Flat rates save money for the company by not needing to itemize out
every call. That includes not needing to answer questions about some
errant 15c call on the bill. While some customers exploit flat rate
service, others make little use of it, and I'm sure the company has
that figured in the rates. Flat rate service is usually not that
cheap except for the most local of services (and even there it was
once much more expensive, but inflation made the fixed differential
cheaper.)


* Billing by time-of-call does not account for costs associated with
distance, which do exist even though they don't track actual "flat
earth" mileage anymore.

While time-of-day isn't as significant in circuit capacity today, it
still plays a part in some quarters. Many cell phone plans still have
limits, and local calling has them as well. Fact is, business
communciations still take place mostly in the day time hours.

.

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