Monday, March 06, 2006

 

Duopoly? Don't bet the farm!

Commenting on the proposed SBC/AT&T-BellSouth merger, the WSJ says
For consumer groups and others, the concern is that customers still could be left with just two choices for such services -- a cable behemoth versus a telecommunications one. "It demonstrates that more than ever the two dominant communications competitive spaces will be represented by cable and phone companies, and it increases the weightiness of policy issues, because fewer companies can have an exponentially more dramatic impact on the whole country," said Michael K. Powell, who stepped down as FCC chairman last year.
[Article behind paywall?]

Don't be so sure the Duopoly will last! Here's one clue: the first draft of the Barton BITS Bill prohibited telcos from buying cablecos. The second draft didn't.

I've blogged about this, and my April VON Magazine column, in press but not yet available, goes deeper.

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