Telecom Mega-Mergers

Let's recap the mega-mergers, shall we? SBC & AT&T, Nextel & Sprint, and now according to MSNBC its Verizon and MCI? According to MSNBC, which quotes the Wall Street Journal, "Merger talks between Verizon Communications and MCI Inc. have advanced, and the two companies could announce a deal in the next few days, the Wall Street Journal reported on Friday."

So who's next in this telecom mega-merger mania? It's certainly entertaining to watch, so break out the popcorn! Telecom Mergers - Break out the Popcorn!And is this consolidation good for the VoIP industry? Is it good for consumers? It certainly can't be good for consumers if there is less competition. And the less choice VoIP vendors have when selecting a carrier backbone, the more expensive VoIP will be.

One could argue that in a free capitalist society, there's nothing wrong with these types of mega-mergers, but I have my doubts. We broke up Ma Bell for a reason - it was a monopoly. This reminds me of Terminator 2 where the bad Terminator gets frozen, broken into a billion pieces by Arnold and then a few moment later after melting, the bad Terminator reforms to be just as big and strong as before. This eerily sounds exactly like what's happening now. We broke Ma Bell into pieces and now it's reforming into just a few big monoliths. Not good... Not good at all.

MSNBC - Talks between Verizon and MCI advance

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Verizon and MCI from VoIP Blog - Rich Tehrani on February 14, 2005 8:32 PM

I second Tom’s opinion on the Verizon, MCI deal while I understand fully why Verizon is almost forced to do this deal. The last thing Verizon wants is to be standing without a chair (read national carrier) when the music... Read More

Buffet and Soros Like Cable from VoIP Blog - Rich Tehrani on February 15, 2005 7:28 AM

Two of the world’s richest people and most savvy investors are eying the cable industry. Is this a sign that video-on-demand and other such services will be highly profitable or that a wave of consolidation will make the big bigger... Read More

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