The classic problem of the ILECs is that they have a government backed monopoly on the local loops everywhere and they leverage that monopoly to compete with companies that don't have government backing. For my $0.02,there are two good options. 1. Eliminate the FCC Universal Service/Coverage funds and let that farmer pay the full rates for connecting his hog barn. (If we had pursued this option years ago, wireless would be much more mature and ubiquitous by now.) 2. Have the government meddle with the ILECs... er, ILEC (singular) and divide the local loops into a different company that provides a platform for selling standardized products and services at wholesale rates to all CLECs. This resulting company would not be allowed to sell to end users just registered CLECs. I hate government created monopolies. It is obvious to the rest of the world that the US does not follow our own principles of "democracy". (More correctly it should be termed a "republic"). With corporate commercial welfare rampant, the free market does not exist. Lorell Hathcock -----Original Message----- From: Frank Bulk [mailto:frnkblk@iname.com] Sent: Thursday, December 04, 2008 3:10 PM To: 'Chris Adams'; nanog@nanog.org Subject: RE: Telecom Collapse? The ILEC is the carrier of last resort. The wireless carrier doesn't have to build coverage everywhere. They don't need to serve that hog barn that requires a 10,000 feet copper loop while playing $17/month. The problem is that whether the take rate for POTS is 75% or 95%, the ILEC still needs to maintain the plant, and capital expenses to maintain the plant are a killer. Either the FCC needs to release ILECs from their coverage obligations so that they can do what CLECs have done and build to the most profitable areas, or subsidize the plant for both POTS and broadband services. Frank