Where are the savings?
New Networks Institute, a research group, says, "There is a recession at hand and every company is having its problems. However, It is clear the Bells' have decided to give the public, the press, and regulators a distorted picture of their current health so that they can get more financial relief, and higher prices for local phone customers and competitors using the Bell networks." This is a good read.
This is a great piece of research -- while the Bells bemoan their fates, they are burning everyone, from investors to customers, to enrich themselves. Note, however that Qwest, which was a long distance carrier moving into regional Bell land, is not on the list. Qwest is just plain losing money, having sunk billions of dollars into overseas and domestic long distance capacity.
From the report:
The Bells profits are still beyond anything that could be considered fair and reasonable for companies that are monopolies.
Major Cuts in Expenses Should Be Leading To Lower Prices. Phone prices should be declining because the two major costs, construction and staff, are decreasing sharply.