that I hope you will enjoy Here with the first two paragraphs - Capitalism in the United States in the 21st century has not moved forward with the rest of the world. We are still embedded in the post World War II mindset of America as the great economic power at the peak of the industrial age. While many of our giant corporations are shrinking in size, in 2005 in American telecom there were two major exceptions to a trend in the technology area of downsizing driven by increasing commoditization as companies try to become more nimble in order to compete in a globalized economy. The two largest local phone companies swallowed the two largest American carriers. SBC merged with ATT and became the “new” ATT and Verizon took over MCI. Motivated they claimed by the goal of economies of scale, CEOs Whittacre and Seidenberg asserted that they could eliminate duplicative infrastructure and save money. What they did not explain was the cost of adding more debt to their core business and the expense of merging two huge and complex organizations with complex billing systems. They also ignored increasing enterprise customer anxiety as sources of redundant network infrastructure vanished. Some observers speculated that the real reasons for the mergers were the acquisition MCI and ATTs global IP backbone’s free traffic interconnection with the other major global players. In an increasingly all IP world, these resources had the potential to enable more cost-effective competition in the efforts of what some began to call Bell East and Bell West’s efforts to provide television over their IP networks efforts to compete with the MSO's cable modem service that will very likely fail. you mat read the entire essay at http://www.cookreport.com/14.11.shtml ============================================================= The COOK Report on Internet Protocol, 431 Greenway Ave, Ewing, NJ 08618 USA 609 882-2572 (PSTN) 415 651-4147 (Lingo) cook@xxxxxxxxxxxxxx Subscription info: http://cookreport.com/subscriptions.shtml How to Stop America's Broadband decline and end LEC Mercantilism at: http://cookreport.com/14.11.shtml ============================================================= |
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