AT&T and telco monopolization

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AT&T prices.

You're right that AT&T is currently squeezed on what it can charge for its various services. The most important competition comes from the cable companies.
(By the way, better to consider AT&T a service than a data provider. Customers do.)

For AT&T, the key to resolving the problem starts with eliminating the competitors in the service business which use AT&T's pipes.
The tiered price system already being implemented, and not disapproved in the most pro-consumer recent legislation, allows AT&T to charge more to competitors in bandwidth intensive services.

Admittedly, AT&T will in some way be mandated to charge itself a similar amount for similar service. And the price pressure has to be implemented quietly.
But being able to charge competitors for doing business must be an advantageous position.

Once "parasitical" competition is over, AT&T has to deal with monopoly cable companies. That is manageable. One can increase its prices a bit and the other can follow. Courtesy is not the same as collusion.

So AT&T has a good future as the national telephone monopoly. Ma Bell come again, but anxious to respond quickly to competitors and not interested in government interference. You might say, she's pissed.

Charlie Brown, CEO of the orginal AT&T, is said to have accepted the breakup because he thought the price of capital would always be so high that building infrastructure would be unprofitable.

The new AT&T knows better: offer all the services your customers want, and build as needed. The customers and your competitors in the service businesses will pay.

Lessons have been learned.

Posted by: Anton Philidor   Posted on: 03/06/06 You are currently: a Guest | Members login | Terms of Use

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