More than a decade ago, working at the energy laboratory at the Massachusetts Institute of Technology, the late Fred Schweppe devised a novel scheme for pricing electric transmission. His...
only found no reliable evidence of local competition, but cited errors in data that PacBell witness Dr. Laurits Christensen presented on market-share erosion and revenue-loss comparison with other LECs. (PacBell's cellular spinoff made these comparisons invalid, says Costa.)
In fact, Costa "couldn't think" of a single major telecommunications player in California that did not oppose the PUC's move to kill the X Factor. She noted that MCI, Sprint, AT&T, Time-Warner, large users, and even cable television firms had all joined with TURN to save the X Factor.
"You cannot act as if these guys are facing competition," says Costa. "Even the cable television guys don't like this decision."
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