By matching prices to costs, the commission is doing all it can to create markets where the low-cost provider captures the most business.
Kemper's overhead rate is roughly eight percentage points higher than that of low-cost providers.
They are not going to pick the low-cost provider only.
To combat these low-cost providers, satellite companies need the size and scale to drive prices lower.
He added, "Fund shareholders that are smart should be going with low-cost providers, and 1.5 percent is at the higher end of the pack."
But, he said, "they can't be the low-cost provider" since they do not own the network.
"They realize that low-cost providers can't give the service they need," he said.
Microsoft's strategy is always to be the low-cost provider, up to and including zero.
Or, is it in encouraging low-cost providers that might in fact provide such value for money?
Instead, the agreement is expected to include incentives for union members to go to low-cost providers.