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From: dmt@mtunb.UUCP (Dave Tutelman)
Newsgroups: comp.dcom.modems
Subject: Re: touchtone dialing always works
Message-ID: <807@mtunb.UUCP>
Date: Thu, 18-Dec-86 07:49:30 EST
Article-I.D.: mtunb.807
Posted: Thu Dec 18 07:49:30 1986
Date-Received: Fri, 19-Dec-86 01:57:35 EST
References: <750@sdcc12.ucsd.EDU> <385@puff.WISC.EDU>
Reply-To: dmt@mtunb.UUCP (Dave Tutelman)
Distribution: na
Organization: AT&T Information Systems - Lincroft, NJ
Lines: 22

My recollection of history on this is that:
   -	Almost from the first, pushbutton dialing was lower COST than
	dial pulsing.  The phone sets were little more expensive, and
	the savings in holding time of the (shared) dial pulse/tone
	receivers more than made up for it.  Thus, it was a bargain
	for the phone company.
   -	Pushbutton dialing was introduced at a higher PRICE for a
	couple of reasons. (1) There was a need to control the demand,
	or it would be ordered faster than it could be manufactured
	and installed.  (2) It made the regulators happy, as it was
	positioned as a premium service that could subsidize lower
	rates on POTS (Plain Old Telephone Service).

Given that there is no longer that need to control demand, and it is
so much more common than dial pulses that it can no longer be viewed
as "premium", the continued premium price seems a ripoff to me.  Score
another for "value-of-service" rather than "cost-of-service" pricing.
This strategy can ONLY be practiced by a monopoly, because in a free
market the low-cost, high-price service will be offered at a lower
price by someone else.

				Dave Tutelman