throbber
3/28/2017
`
`Can I Put You on Hold? Profits Are Calling ­ latimes
`
`Advertisement
`
`YOU ARE HERE:  LAT Home → Collections → Consumers
`
`Advertisement
`
`FROM THE ARCHIVES
`
`Making a Net Call to Firms
`October 7, 2004
`
`Kids' New Calling Plan: The Party Line Returns
`November 15, 1999
`
`Call Waiting? PC Will Deliver Message
`October 4, 1999
`
`TELECOMMUNICATIONS SPECIAL
`
`Can I Put You on Hold? Profits Are Calling
`'Feature' Services Are Big Business for the Phone Companies, So Don't Expect a Letup
`February 03, 1997 | KAREN KAPLAN | SPECIAL TO THE TIMES
`
`Email
`
`Share
`
`0
`
`Tweet
`
`Recommend 0
`
`Necessity may be the mother of invention, but only the profit motive seems capable of explaining the
`staggering proliferation of telephone services such as call waiting, call return and caller ID.
`
`At 50 cents a pop or a few dollars a month­­seemingly spare change to a multibillion­dollar phone
`company­­these "calling features" have grown to account for roughly 20% of the Baby Bells' telephone
`operating profit.
`
`Together, the services generated $4 billion in revenue last year, in the residential market alone, for the
`seven regional Bell operating companies. Analysts estimate that figure could rise to $6 billion by 2000,
`with 75% of that pure profit.
`
`That has led phone companies to introduce no less than 50 calling features, ranging from the useful to the
`outright ridiculous. Consider:
`
`MORE STORIES ABOUT
`
`Consumers
`
`Profits
`
`Telephone Industry
`
`Caller Id
`
`* Select call forwarding, which allows customers to choose which calls will follow them to another phone.
`
`* Priority ringing (also called VIP alert and identa­ring), which assigns a distinctive ring to calls from pre­
`selected numbers.
`
`* Anonymous call rejection (also known as "block the blocker"), which allows caller ID customers to reject
`incoming calls from people who refuse to reveal their phone numbers.
`
`* Call mover, which allows a customer who disconnects his or her phone number upon moving to record a
`message announcing the new number.
`
`For customers who feel overwhelmed by choices, there is little relief in sight. BellSouth, for example,
`recently hired a vice president for marketing whose entire job is to think up new calling features and
`bundle them into attractive packages.
`
`"I think what you'll see is a proliferation of more and more of these," said William N. Deatherage, a
`telecommunications analyst with Bear, Stearns & Co. in New York. Deatherage expects the next onslaught
`to come in the form of voice­activated dialing services, so that a spoken command such as "Call Mom" can
`render the tedious process of dialing the number obsolete.
`
`Fueling this boom is anticipation of the competitive local phone service promised by the
`Telecommunications Reform Act of 1996. As long­distance companies like AT&T, MCI and Sprint enter
`local markets and the Baby Bells invade one another's territories, phone companies will look to offset
`falling revenue in core businesses with the comparatively easy money that calling features bring.
`
`http://articles.latimes.com/1997­02­03/business/fi­25080_1_call­waiting
`
`1/3
`
`CISCO SYSTEMS, INC. v. FOCAL IP, LLC
`FOCAL IP, LLC EX2061 - 1
`Kaplan
`IPR2016-01257
`
`

`

`3/28/2017
`
`Can I Put You on Hold? Profits Are Calling ­ latimes
`
`In California, Pacific Bell has responded to severe competition­­and loss of customers­­in the toll call
`market by stepping up its marketing and promotion of enhanced services. A celebrity spokesman touts
`services such as call return and caller ID in broadcast and print advertisements. The campaign has met
`with some success: Subscriptions for calling features have been growing at an annual rate of 10%,
`according to the company.
`
`Revenue from calling features is especially important in the many parts of the country where phone
`companies charge below cost to provide a basic phone line and depend on selling a handful of high­margin
`features to push those accounts into the black.
`
`* T
`
`he software that makes these calling features work is installed at the switches that route calls over the
`network. The software costs less than $15,000 per switch, and each switch serves about 10,000
`customers. After the software is in place, the marginal cost of providing calling features to customers is
`close to zero, and the profit margins are correspondingly high.
`
`"There are some expenses associated with service orders, record keeping and billing, but if you're
`charging $2.50 or $3 per feature per month, they're pretty profitable," said John Goldman, media
`relations manager for BellSouth Telecommunications in Birmingham, Ala.
`
`But money is not the only reason why phone companies are offering dozens of the services, including seven
`different kinds of call forwarding. The companies feel they must offer an array of features in order to win
`new customers and keep the ones they already have.
`
`"It's clearly very valuable in a competitive environment," said Pat Evers, marketing and communications
`manager for US West's voice products and services in Phoenix. "If you have these features loaded on a
`basic line, it makes that line much more difficult for competitors to replicate."
`
`But analysts say they will certainly try.
`
`Indeed, as newcomers prepare to enter the local phone business, they are likely to target customers who
`buy the most features, because they generate the most revenue.
`
`"If AT&T had a crystal ball and they could figure out everybody who bought caller ID and call waiting,
`they'd go after every one of those customers with their guns a­blazing," said Brian Adamik, vice president of
`consumer communications at Yankee Group, a market research firm in Boston.
`
`*
`
`1 | 2 | Next
`
`Email
`
`Share
`
`0
`
`Tweet
`
`Recommend 0
`
`From the Web
`
`
`
`by TaboolaSponsored Links 
`
`Simple Investing Tips For Uncertain Times
`Capital Group
`
`Quicken Loans Urges Homeowners To Switch To A 15­Year Fixed
`QuickenLoans
`
`http://articles.latimes.com/1997­02­03/business/fi­25080_1_call­waiting
`
`2/3
`
`CISCO SYSTEMS, INC. v. FOCAL IP, LLC
`FOCAL IP, LLC EX2061 - 2
`Kaplan
`IPR2016-01257
`
`

`

`3/28/2017
`
`Can I Put You on Hold? Profits Are Calling ­ latimes
`
`Fort Worth: This Meal Service is Cheaper Than Your Local Store
`Home Chef
`
`3 Real Women Conquer Tricky Spring Trends
`Barneys New York
`
`See How Brightwood College Can Help Your career
`Brightwood College
`
`Single in Fort Worth? See Who’s on Match
`Match.com
`
`I Tried Leesa's Mattress, Here's What Happened...
`Cup of Jo for Leesa
`
`Earn Your Penn State Degree from nearly Anywhere in the World
`Penn State Online
`
`MORE:
`Seizure Led to FloJo's Death
`
`His 104 scores make his case
`
`Restaurant review: South Beverly Grill
`
`Brutal Murder by Teen­Age Girls Adds to Britons' Shock
`
`Comaneci Confirms Suicide Attempt, Magazine Says
`
`Copyright 2017 Los Angeles Times
`
`Index by Keyword
`
`|
`
`Index by Date
`
`|
`
`Privacy Policy
`
`|
`
`Terms of Service
`
`http://articles.latimes.com/1997­02­03/business/fi­25080_1_call­waiting
`
`3/3
`
`CISCO SYSTEMS, INC. v. FOCAL IP, LLC
`FOCAL IP, LLC EX2061 - 3
`Kaplan
`IPR2016-01257
`
`

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket