A Grim Future
The Example of Oacys
The case example of the Oacys who you read about at the end of the last chapter is an all too familiar paradigm that has followed all of the Bells when they compete *further information* , particularly Verizon. In Verizon’s case, it may simply be that by virtue of Verizon’s size, there is more opportunity for these situations to arise. Important points of that case:
- Directly lied to about the provisioning of DSL in his area.
- Original price quotes were not honored.
- Promised to have his service operational within one month. Was not functioning until one year later.
- Delay tactics.
- Problem incorrectly diagnosed until three months after service was installed.
Interestingly, he did not last long enough in that market for many of the other aggressive strategies to become implemented. However, let us assume that you are Mr. Oacy and that you did survive the first round of battles as many ISPs did… (Verizon will be used as the continuing example, since Verizon has had all of these allegations outlined in various legal complaints.)
You then begin selling the service. As you place the orders with Verizon, the orders are either mysteriously lost or do not go through. Although you explain to these customers that it is the fault of the phone company, they begin losing patience.
Adding insult to injury, your customers are then solicited by Verizon. They are told that they can receive better service for an even lower cost. In the middle of this fiasco, the customers that you do have begin experiencing random outages. These outages only affect your customer base.
The final nail in the coffin for you is the price drop that the phone company offers to new subscribers. *further information* Every time you offer DSL services to your customers, Verizon charges you $32.50 per client per month. You charge your customers approximately $49 which includes the set up, and other fees associated with maintaining a DSL. You are barely scraping by. Verizon then announces their promotion which allows customers to sign up for $39. Verizon is losing money on this deal, but will guarantee it for a year. You cannot compete.
How would you feel at this point if you were Mr. Oacy?
The Making of a Giant
Throughout this discussion, the topic has been on the Bells as a whole. This is understandable considering that they have all originated from the same source, serve the same functions, and operate identically in nearly every way. Their differences revolve primarily around their size and scope. Nonetheless, it is worth mentioning the origins of the primary RBOC that is responsible for the inception of this site.
In 1996, Bell Atlantic and Nynex received approval for a merger of their assets, under the heading of Bell Atlantic. Without delay, approval was acquired again, this time for Bell Atlantic to merge with GTE. This merger formed what we now know to be the largest telcom company in the country, Verizon.