Options expand despite telecom mergers

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Dinosaurs not a good comparison for your case.

Fits my case that a monopoly is being rebuilt better.
The dinosaurs were huge for tens of millions of years before they died out. Some species went from carnivorous to herbivorous, and dinosaurs filled every available niche for an animal larger than a mouse. (Let's call pteradactyls dinosaurs-by-popular-demand.)

The Bells are doing the same thing as the dinosaurs. Cell phones are popular? Fine. The Bells become the biggest cell phone operator.

The only competition for them is cable companies. Because cable puts wire on the same poles to reach the same homes.

Get only two competitors for a big market and they'll find a way to live with each other. They can set their prices from publicly avaialable information, nothing illegal. They can also increase their prices in tandem.

Even better, when they package their products, as both the Bells and cable companies are doing, there's no significant competition on any specific product. Everything is based on the package price.

If WiMAX gets realistic enough, which do you think will make the effort to control it? I'm betting the Bells. They'll keep it an expensive service for cities and businesses, make a lot of money, and keep it from disturbing their investment in wires.

Remember, too, that for most people in most places there are one choice of Bell and one chhoice of cable company. And each is willing to let the other feed contentedly on the consumer.

You wouldn't expect to outfight a dinosaur all by yourself, would you?! Well, we're not going to outfight the Bells and cable companies alone either.

Posted by: Anton Philidor   Posted on: 04/01/05 You are currently: a Guest | Members login | Terms of Use

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