Tuesday, March 07, 2006

Ma Bell Buys BellSouth

Om Malik from Business 2.0 writes in CNN Money about the at&t-BST merger: "If you include the roughly $21.6 billion in proportionate debt, the total purchase price equals to about $89 billion." "One cannot fault AT&T for making such an audacious move, since it has been runner up in the broadband business to cable providers. .. In addition, it has been losing wireline customers to wireless properties, and also to new VoIP-based phone services from cable companies. According to UBS research estimates, there were 5.1 million cable voice users at year end, up 63% annually." "It is ironic that market forces are putting back together what the Justice Department broke up with the Judge Greene consent decree (in 1984)," says Sanjay Subhedar. Maybe we should focus on the positives:
  1. Less lobbyists because there will only be 2 companies.
  2. Less voices on that side as well - up against 5 cableco voices and many CLECs.
  3. Less customer service.
  4. At least 12 more months of consolidation and back-office integration - plenty of time to take market share from them in a single niche.

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