Are the current treads of telecom mergers good for the future of telecommunication?
Once upon a time whenever one wanted to communicate with someone else on the other end of the country, a telephone was picked up, dialed a number, just one number to reach an operator. It was a nice friendly voice on the other end of the line, whose native language is the same as yours. You asked to be connected to a party and a few minutes later you had that person on the line. Everyone was happy.
But it appeared that not everyone was happy, and it was decided that this communications bliss wasn’t good for business. I’m not sure whose business, but a federal judge made it his business and decided there was a monopoly. So the company, the biggest telecommunications company in the world, one that was innovated and always at work to make things better for the user, was required to divide its company. There may have been others smaller parts that were broken away, but those that all could see was the formation of seven regional telephone company, whose purpose was to supply the service to the user in their region, and the parent who could communicate over great distances. Yes, there were a couple of smaller companies who had been trying to supply long distance, but now they were on a more even playing field.
But people were being bind by wires and more and more wanted to communicate wirelessly, which up had been used mostly by police, fire and other governmental agencies and taxis. The FCC, the all-seeing body of the airways, established in the 1930’s by a still existing telecommunications act of congress, made a plan. There is money out there to be gotten by selling off the radio frequency spectrum. This new natural resource of the US, which had been around freely in the air since time began, could be had by a price. A plan was made that would use a cellular approach to radio waves.
Is wireless communications a good thing? That can be debated and could make an entire another discussion. But the point to be said here is that these were created to be separate.
Time passed and the seven regional companies combined to make four. And each had a piece of the wireless pie. But they wanted more. They wanted long distance. So they followed the rules that the FCC set up and became long distance carriers themselves.
But was that enough, apparently not since mergers have been escalating to an unbelievable degree in the past year. ATT wireless, which only held the ATT name and not part of the corporation, merged with Cingular, who at one time was known as CellOne. A name I think is better than Cingular. Then Sprint and Nextel merged, creating another big wireless player, instead of two smaller ones.
Then what was unthinkable in 1984 the baby bell had finally gotten to be bigger than the bad old mother and SBC merged with ATT. They took the name and AT&T was reborn. Verizon not wanting to be left behind merged with MCI, after a long battle with Qwest on who would get the once 2nd biggest long distance carrier. And it’s probably not over.
But the worst part about all of these telecomm mergers is that soon the Daytona 500 will just be a Sprint race.