AT&T Offering Merger Concessions 98
TheFarmerInTheDell writes that AT&T is offering concessions to make their merger with SBC happen as fast as possible. From the article:
"AT&T filed a letter of commitment with the [Federal Communications Commission] Thursday night that adds a number of new conditions to the deal, including a promise to observe 'network neutrality' principles, an offer of affordable stand-alone digital subscriber line service and divestment of some wireless spectrum."
Don't forget the fine print. (Score:5, Insightful)
Welcome Back Ma Bell (Score:3, Insightful)
That ain't no concession (Score:4, Insightful)
That's not a concession - that's an attempt to head off binding legislation with a 'promise' that is easily broken once the merger is past the point of no return. They want to have their cake and eat it too.
Re:merger. (Score:2, Insightful)
Which is it? (Score:3, Insightful)
But I thought network neutrality was bad for consumers last time we asked the telcos?
Re:Welcome Back Ma Bell (Score:5, Insightful)
Monopolies or oligopolies aren't all bad in some industries, sometimes they are the most efficient market structure. I'm not saying that the telecom industry is one of these, but there is a reason that after several breakups that they just coming back together. The same thing has happened in the airline industry. Any industry that demands a very large infrastructure will always lean toward a non-competetive market structure because the "cost to play" is so high.
Re:That ain't no concession (Score:3, Insightful)
Two years? Hah. That's so paltry, we should all feel insulted. They probably wouldn't even be able to effect the major technology change on their network to disrupt neutrality for that long anyway. Might as well promise according to plan. That promise should be perpetual and binding.
All of their promises, excepting the 2.5ghz auction are without substance, and that is suspect. They had already announced repatriating those jobs. Naked DSL for a whopping 30 months. Whew whee! So they'll get more people accusomted to broadband phone and tv services, and then take away the network neutral, unbundled option, forcing them on to their bundle after 30 months. At least we know their marketing strategy! I don't really understand why they are willing to cede the 2.5ghz... best guess is they intend to acquire that 'unrelated' entity after they build out sites on that 2.5ghz wimax. That goodwill asset booked on mystery carrier X will underwrite a lot of financing of cell sites!
Slimeball business monopolists. (eat me)
Re:Which is it? (Score:3, Insightful)
Re:Welcome Back Ma Bell (Score:5, Insightful)
It's not the "industry" that wants a monopoly, it's the management of this industry. Industry itself has no self-organized will to monopolize. Monopolies are inherently anti-competetive. The reason Ma Bell was broken up in the first place was to protect consumers. It is inherently in the best interest of these companies to raise the "cost to play" once they've formed a monopoly in order to keep small players out and thus kill off competition. Once you're the only provider, you can afford to pay whatever outrageous fees are needed because consumers have no choice but to pay you for service. Look what happened when the government recently removed the Universal Service Fund fee and the big telcos moved to fill that gap to help pay off their taxes. And they're still getting away with "tax recovery" fees, passing on their social responsibility to their customers in order to bolster their bottom line. Can I get a raise of hands here on how many people find today's cable or telco companies (land-line or cell) doing all they can to respond to market pressure and consumer demand instead of just filling their own pockets?
But hey, if you want to go back to renting phones, be my guest...
Re:Welcome Back Ma Bell (Score:5, Insightful)
Most of these 'concessions' sunset after 40 months (Score:3, Insightful)
Politicians always agree to these dumb time limits without thinking long term. The internet will be around for a hell of a lot longer than 40 months and they should understand that - the telcos sure as hell do.
Re:Welcome Back Ma Bell (Score:3, Insightful)
There are lots of 1A-ESS and 5ESS switches still in operation. Lots. Additionally, AT&T continued to manufacturer switches for many years after the break-up and sold them to the baby bells. I know. I worked for AT&T at the time.