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ECT News Community   »   TechNewsWorld Talkback   »   Re: Telecom Mergers Make Sense



Re: Telecom Mergers Make Sense
Posted by: Sonia Arrison 2005-03-07 01:40:27
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This week, a Congressional committee held hearings on the mergers of SBC with AT&T and Verizon with MCI. While some might worry about consolidation, the mergers are a sign that the telcos are preparing for a new wave of competition from businesses previously confined to other parts of the economy. The telecom industry is going through numerous changes, partly due to technological innovations and partly due to a lightening of regulatory restrictions.


Re: Telecom Mergers Make Sense
Posted by: SubTexel 2005-03-07 01:46:58 In reply to: Sonia Arrison
How is it better for the consumer? Less TELCOs (due to mergers) will mean less competition in that arena, and thus price increases will follow. Microsoft followed a similar strategy but everyone went up in arms over it, and they were subsequently prosecuted. The Bells were broken up for a reason, there is no need to allow them to come back together. The argument about better prices in the Video sectors is mute, when you take everything else into consideration. This sounds almost like a paid ad for the Bells.
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