Monopoly: Communications ‘Harvesting’ as an Antitrust Case

  • “Plunder Pricing” is the antonym of predatory pricing; A corporation takes every financial and regulatory advantage from a captured customer or client, using multiple means, including harvesting, but continues to deny their actions, or that they are causing specific harms.
  • “Predatory prices” are setting the price of a service or product below the price of a competitor, which can be good for the customer but harmful to competition.
  • ‘Harvesting’ is a business practice where the company has decided to close or change the service and uses the customers’ inertia, loyalty, or lack of knowledge about basic details to squeeze profits through continuous rate increases, making the customers drop their service or get gouged.

“Substantial increases in the rates for local telephone service, thus eroding the statutory goal of universal telephone service for all Americans. See 47 U.S.C. § 151.”

  • Overcharging of basic service was about $16–22 a month, $195 to $270 a year.
  • Counting taxes and add-ons, overcharging can be $30 a month- $360 a year.
  • $1,700-$3,200 per line since 2006, depending on the service. We are using $2,500 for the average from 2006–2020.
  • Note: This is only a small part of customer overcharging we uncovered.
  • Nationwide we estimate a conservative $10.8- $14.5 billion annually.

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New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.

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bruce kushnick

bruce kushnick

New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.

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