One BELL to rule them all, One BELL to find them,
One BELL to bring them all and in the darkness bind them
In the Land of Networks where the Shadows lie.
One BELL to RULE THEM ALL!
One of the bigger news this week, besides CeBIT 2006, Conroe at IDF, and Microsoft's "Origami" Project, is AT&T's acquisition of BellSouth for almost $90 billion.
Merger and Acquisitions happen on a daily basis in the business world, so, what's so special about this one?
If you were born some time between the 50's and the late 70's (preferably in the U.S. 'cos it would be more relevant), and if you bothered to read the Business Section of your newspaper or watch the news, the acquisition would sound like a pointless ending to an ugly saga.
Otherwise, for the post-grunge, pre-Brokeback Mountain hatchling, this could be summed up in the most eloquent of expressions, "Whaaaat-ever..." Followed by a gesture that tells me to have a conversation with the hand.
If a company such as AT&T (founded by Alexander Graham Bell circa 1875), one of the biggest company in the world, would so much as hiccup, the repercussions can be felt all over the world (remember the AT&T Broadband shutdown in 2002 that put millions of users disconnected for weeks?).
So, you better believe that the acquisition is indeed newsworthy, wherever in the world one is.
But equally amazing is the fact that a big company such as the original AT&T can degenerated into a pitiful state.
After a series of complaints and Antitrust lawsuits (the 'Kingsbury Commitment' in 1913 and the 'Modification of Final Judgment' in 1982), AT&T the company eventually became the 7 Baby Bells (Ameritech, Bell Atlantic, BellSouth, NYNEX, Pacific Telesis Group, Southwestern Bell, and U.S. West) and Ma Bell (AT&T Long Distance) with which we are familiar.
But not unlike Sauron who was defeated by Isildur in the first War, the spirit of AT&T and its minions (the 7 Baby Bells) endured, gathering strength in the Shadows.
What happened next is as confusing as the time leading up to the War of Middle Earth.
A few of the 7 Baby Bells began to buy up some of its lesser siblings, e.g. NYNEX acquired Bell Atlantic and GTE (not-AT&T related) to form Verizon (2000), the biggest Telecommunication Company on the East Coast.
AT&T Long Distance itself was divided into AT&T Broadband, Wireless, and Home [& Business]. The Broadband and Wireless divisions quickly ran into financial troubles and was absorbed by Comcast and Cingular respectively. Cingular is owned by SBC, one of the Baby Bells that earlier bought Southwestern Bell, Pacific Telesis, SNET (not related to AT&T), and Ameritech.
Then at the end of 2005, SBC bought the remaining AT&T entity and assumed the name AT&T.
All these mergers have not done the consumers any good except to confuse the heck out of their minds. The billing is a nightmare for all subscribers, not to mention the lousy but yet expensive service. I have to pay $10 every month for a phone line that I don't use except for DSL. My monthly DSL fee is a laughable $45 to the South Koreans.
'Attack of the Bells' (Source: The Technocrat Soapbox)
On Monday (March 6) , the new AT&T acquired BellSouth, almost completing the task of becoming the former beast that threatened open competition and fair play. The only original Baby Bell that is left is U.S. West, which bought Qwest (not related to AT&T) to form Qwest Communication in 2000.
If you have not dozed-off reading my diatribe, you would see the point of my story. And that is, what's the point of spending all that time, energy, and resources to break up AT&T in the early parts of the 20th century and mid-80's, only to see it come back full circle without so much as a peep from Congress.
This is ridiculous. The American people should be outraged that our Telecommunication Industry is as organized as a Frat House after a Friday Night Party. The laws that govern Telecommunications are outdated and should change immediately to live up to today's challenges.
The BELLS want to go back to their former self. With the threats of higher rates and a "Tiered Internet" looming over the horizon, does it make sense to consolidate so much market influence into the hands of so few?
Aragorn and Frodo, where are you when we need you?
Read: Ma Bell -- reborn
Read: The History of AT&T
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This article is by: YC (Guest Blogger) from the Technocrat Soapbox |
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