The Competitive Telecommunications Association (CompTel) published the results of a new study that finds that UNE-P leasing is actually a profitable business for the Regional Bell Operating Companies (RBOCs) at current rates. CompTel claims that the four Bell companies were earning wholesale profits of at least $605 million a year on the unbundled network element platform (UNE-P) lines as of Q1 2003. According to the CompTel’s study:
- SBC Communications was earning $275 million in annualized profits on some 5.78 million UNE-P lines as of 31-March-2003.
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Verizon Communications was earning annualized UNE-P profits of $149 million on the 3.5 million UNE-P lines it had as of 31-March-2003.
While noting a wide range in profitability from RBOC to RBOC primarily because of disparities in the authorized wholesale rates from state to state, CompTel argues that UNE-P prices are not “below cost” and that margins in fact range from 16% to 33%. SBC allegedly earns nearly a 20% profit on average for each UNE-P line its provides to a competitor.
http://www.comptel.org