Nicron #63 20 ноября 1997

Information - Ph.D. Moses Gelman of hourly pay for calls in Moscow.

    Subj: Dictate monopoly

(R), (c) Wlodek Black


  Subject time payment of telephone conversations in Moscow in 
recent weeks, gaining momentum and gradually becomes a critical 
issue. This is understandable - phone innovations affect 
everyone of us. Specific numbers and dates have already called 
- $ 100 a minute, about 22 minutes a day free of charge, a 
monthly allowance; date run counter - July 1998.


  Critical issue was the topic, in particular, devoted a large 
(at two rooms) analytical article candidate of technical 
sciences Gelman Moses' time-based solicitation by telephone, 
"published in" Pravda-5, 20 and 21 November. 

  Due to the fact that an article published in Pravda,
five ", are subject to copyright, direct Reprint
not possible.

  And the title of the article and the topic - "Dictate 
monopoly" - do not raise doubts about the position of the 
author. 



  Rebuttal utility venture MGTS author, Ph.D., begins with an 
engineering evaluation of the project. Adoption, that the 
introduction of the counter will reduce the load on the 
telephone network can not withstand any criticism. Experiments 
carried out as early as 80 years in several large cities (then 
venture failed) showed: full load on the telephone line has 
only grown; number of calls from office phones increased by 40%;

no benefit has been received. Redistribution of time and
physical route switching upset the strategic ideology 
construction of telephone networks, which can be briefly 
described by the following figures: 1 line of 10 customers, so 
Statistics as a subscriber of the 10-and existing at a time 
uses a telephone, no more, 75% of subscribers to slander per 
month less than 700 minutes, 15% - up to 1000 minutes, 10% - 
More than 1000 minutes. Proposed MGTS rate in 600 minutes with 
a little a month, according to the author, clearly understated 
- the technical network capabilities allow more, up to 60 
minutes a day, and this time, "the tube" spend only a few 
percent of subscribers. Intention to restrict the access of 
subscribers to telephone service for time means either that the 
telephone network is designed properly (it is not), or the 
reason lies not in technology. 


  Economic background of the author sees primarily in the 
monopoly of MGTS on the market of communication services. Even 
if the introduction of counter does not lead to direct the flow 
of funds to pay for oversized minutes (likely will not - 
subscribers will reduce the time for talk), perhaps indirectly 
profit from the reduction of capital investment in network 
development - new subscribers can be connected without 
increasing capacity, that is, the price decline in the quality 
of communication services in the daytime (peak load) and 
limiting their number in the evening (counter). On the issue of 
cost innovations author reply refused, citing commercial 
secrecy. But we know that will not only enable the counter, but 
to increase the monthly subscription fee. In fact, this may 
mean payment of equipment and works on the "counter" all 
subscribers, regardless of their degree of talkativeness by 
telephone. By another side effects caused by the displacement 
of telephone activity in the daytime, the author draws 
attention: Starting to get additional phone bills, state, and 
the more commercial organizations will be correct its financial 
position by us to you, that is, by raising the prices of goods 
and services. And this is - a new round of inflation, doubt 
which is not necessary, he prishodit for each increase in costs 
for travel, utilities, etc. vital important and relevant to all 
spheres. Now here - the phone. 

  For all that, now works with the efficiency of MGTS
20% (very good indicator.) Operating costs of individual rooms 
is 30 thousand rubles a month at the tariff for the population 
20 tys.r., the difference is compensated by fees for commercial 
organizations - 110 tys.r. and low cost - 55 m. rubles. MGTS 
profitability, according to M. Gelman, exceeds similar to those 
of the leading U.S. company ATT. 


  In support of economic questionable "counter" by
transferred to the legal arguments. Despite repeated
requirements, management MGTS has not yet been provided to the 
antitrust authorities estimate their costs for the project. The 
existing practice of charging for legal persons is contrary to 
article 27 of the Law "On communication" and the new "Rules of 
telephone services "(paragraph 80). The very fact that attempts 
to introduce time payment is contrary to the Law "On natural 
monopolies" (Article 5). According to the author, is illegal 
and Resolution Number 1235 of the Russian government, which 
provides telephone companies right to set tariffs and shape 
into account the cost of services. 


  Mention the author and the lease wire lines MGTS companies
cellular communication, seeing limited access ordinary 
subscribers the opportunity to a greater extent, to provide a 
lease with the extraction of benefits for MGTS. Referring to 
the interests of users of modems, The author has no objection 
to charging subscription fees for the operation of data 
communications over telephone lines, but believes that the time 
payment is unacceptable in this case. 


  In the editorial of Pravda Five "emphasizes that
Article Guelman a formal request to the Prosecutor's Office
Moscow with a request to check out the article violations of 
existing legislation and take appropriate action. 


  Assuming that the prosecutor's office did take
measures to curb the appetites of a monopolist, and the 
legitimacy of triumph, the decision to impose time payment will 
not be made the most of MGTS. Empowered to make such a decision 
only federal agency or authorized them. And the executive 
authorities, as we know, are accountable to the elected 
legislative structures (at least, it should be by law). Not far 
off December 14 - Elections to the Moscow City Duma. Now 
everywhere are meeting with the candidates, launched the 
campaign. Nothing prevents to draw the attention of candidates 
for the problem. And the government of Moscow headed by Yuri 
Luzhkov can show common sense, remember as recently went crash 
crazy idea to commercial bus routes, and nothing returned all 
back on track. But, of course, illusions about the present 
rulers of Russia narodolyubiya naive, however, despite the hope 
dies last, we will prepare for the worst. I have already asked 
to share their experience in those regions where the "counter" 
including long. Yes, and reserve optimization and 
rationalization of the network, its servers and users are far 
from exhausted. A tighten their belts we are not unusual. 
Accustomed to. Other and do not wait. But resigned it?