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Competition, Costs, Interconnection, Markets (Rural, Urban), Prices,
Services |
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Part of a series on universal service, Loop
Dreams, compares the 1993 price of basic local telephone service with the
cost of the loop, the major component of local service. Also called a
"line" or the "last mile," the loop links customers with networks.
Loop
Dreams explains differences among definitions of costs (embedded,
Incremental, and future) and traditional rates (local, state toll, and
interstate toll). Research shows that for some markets, the local prices
do not cover the loop costs regardless of the definition. The issues
covered in this paper continue in the conflicts that accompany the
introduction of competition into the local service market. An early
version of the New Technology Deployment Model was used to calculate the
data.
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