I used to work for this company when it was big and dominant, but hence it is no more:
SBC to buy AT&T:
"After 128 years as an independent company, since just after the invention of the telephone that's the centerpiece of its business, AT&T will be absorbed into its offspring SBC Communications in a stock-and-cash deal valued at $16 billion."
Nothing lasts for ever, especially in technology.
I've been following this issue for about a week and have come to one conclusion: The AT&T breakup of 1984 has accomplished nothing in the past 20 years. When Ma Bell was split into the Baby Bells, each baby bell was given a territory where it was immune to competition. One big monopoly was traded for a handful of smaller monopolies. When competition finally emerged with the first round of de-regulation, the authorities were surprised to see that instead of introducing hundreds of new players to the telephony markets, mergers and consolidation began. The various Baby Bells began to join together, and quickly sucked up new players in their markets as well. Now, over 20 years later, a baby bell is set to absorb the last remnants of the original Ma Bell. Meanwhile, most end-users of phone service continue to have only one choice, just as they did pre-1984.
ReplyDeleteExcellent comment, although Voice over IP services from companies like Vonage seem to be gaining ground. Over the last month or so, I personally know about 4 families who have switched.
ReplyDeleteThis seems like bad news for the baby bells. Finally competition? We will see.