Thursday, February 23, 2006

This article is a nice example of what happens when a reporter has had all the skepticism boiled out of them. CenturyTel, our local phone company, is going to the state to have price controls removed. Why? Well, according to the article, it's so they can have the freedom to lower their prices whenever they want to.

Um, yeah. Why am I skeptical?

4 comments:

Anonymous said...

Not that your skepticism is misplaced, but I wouldn't dismiss the phone company's statement outright. They are tied to their rate structure - the benefit to the consumer is that the monopoly phone provider cannot charge "excessive" prices. However, phone companies are faced with much competition (VoIP and mobile providers) that they never used to face. I'd be interested to see if they are losing customers to these technologies.
-Chad

Mike said...

I do think it's interesting that not only is our cable company offering phone service now, but the phone company is starting to offer TV channels. It's a very weird world.

Anonymous said...

When did CenturyTel take over? It was GTE when I lived there - but I think they were bought by someone.

The fact that in the current pro-business environment you still see regional phone companies shows how little money there is to be made. Living in large metro areas these past years, I got used to large, baby-Bell phone companies (Verizon and SBC). Now that I'm in a rural area, we're back with a little guy - and one that thinks they can charge monopoly prices. Its really amazing what we pay for phone service in Maine.

Mike said...

About five years ago. For the most part, it's been an improvement over GTE, but it's hard to say how much of that is the result of technological innovations and how much is the company.