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State utility commissions typically regulate local phone companies, but local ph

ID: 1185527 • Letter: S

Question

State utility commissions typically regulate local phone companies, but local phone companies also offer long-distance service to their customers. Rival long-distance carriers also connect to local phone lines to provide long-distance service to customers. Recently, the rival long-distance carriers have complained that the local phone company repair persons have put peanut butter on rival long distance carriers's phone lines to encourage rats to eat through the lines. If ture, is this a profitable strategy? Why?

Explanation / Answer

Yes, its profitable as this makes the rival carriers more dependent on the state utility company as their wires are damaged frequently

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