Telecom Competition

I received this e-mail this week from Consumer’s Union and agree that we are seeing too many mega-mergers in telecom. The telecom industry is turning into a battle between those who want to innovate against those that want to regulate. VoIP has revolutionized telecom and we need to allow this revolution to continue. Allowing a few companies to own all the pipes to all the homes is the worst thing we can to foster innovation and competition. Please forward this entry to others and let them know a telecom market free from competition is likely free of innovation as well.

Dear Rich,

This year, telephone giants SBC (formerly Southwestern Bell) and AT&T announced their merger. Shortly thereafter, Verizon announced that it would combine with the huge long distance company, MCI. Bigger is not better! If these mergers are approved, the two new companies created would control 90% of the home phone market in most states, and could block competitors from offering new and cheaper services.

Take action now to let the Federal Communications Commission know you demand competition for your cell phone, traditional phone or Internet dollar.

Years ago, there was only one phone company. The federal government stepped in to break up the monopoly so competition could drive down phone prices. When competitors got into the long distance business, prices came down. But, if the proposed mergers of phone giants of SBC/AT&T and Verizon/MCI are allowed to go through, we will soon find ourselves with few competitive options when our bills go up. 

If you are frustrated with endless fees, confusing bills, and poor customer service, you want more competition, not less. SBC and Verizon already have an anti-competitive track record. The new giants would be even better positioned to block competitors from offering new and cheaper services, including Internet based services.

Tell the FCC to stop these mega-mergers.

And please, tell your friends and family because skyrocketing phone and Internet prices affect us all. Add their voices to yours! 
Morgan Jindrich
A project of Consumers Union
1666 Connecticut Avenue, NW, Suite 310
Washington, DC 20009-1039

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