Is the Ma Bell Monopoly Back?
Posted by Joseph Brochin
In recent months some in the telecommunications industry have started becoming disturbed by recent mergers and acquisitions between companies in the telecommunications industry.
In November of 2005, SBC acquired AT&T. With this acquisition SBC/AT&T became the largest provider of local and long distance telephone services, DSL, and data services in the United States and one of the largest providers in the world.
Recently the planned merger of AT&T with BellSouth has been announced. Both companies have approximately a 50/50 share of Cingular wireless services.
What makes this so ironic is that both SBC and BellSouth where “baby bells” at one time. The “baby bells” where the result of the breakup of the AT&T monopoly in the 1980’s.
So are we seeing the re-establishment of the AT&T monopoly? Some experts feel the answer is no because competition in the industry is much better than when the Ma Bell of old was broken up. Others, to include myself, feel this is the beginning of a new and even larger monster for the telecommunications industry.
When will the mergers and acquisitions be stopped? It probably will not. Why is it that we can never learn from history? With the breakup of AT&T in the 1980’s, competition and consumer savings was seen immediately throughout the telecommunications industry. So why now are we letting this monster take root again?
Other concerns for the telecommunications industry arise with the Sprint/Nextel merger. So why should the consumer be concerned? Simple.
We as consumers have been enjoying the savings of the competition in the telecommunications industry because of all the small independent companies and competitors. When cellular and VOIP technology started taking hold, the traditional companies became scared, they knew they had to get their foot in the door. What better way to do this than to use the large purse they have to start buying them out or merge.
Look in the future for cable and satellite services to fall victim to these large corporate behemoths.
So in my opinion, look out, because history is about to repeat itself in the next few years and all those lovely prices for services we have seen in the telecommunications industry over the years will be gone.
Lets hear your thoughts?
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