FCC Approves AT&T Merger with MediaOne

Tei'ehm Teuw writes "From an article on CNN - The Federal Communications Commission Monday approved AT&T Corp.'s proposed $54 billion bid to buy cable television company MediaOne Group Inc. This will pave the road for servises like Roadrunner to be tenatively available in 30 percent of the US market. The FCC denied AT&T's position that the 30 percent ownership rule did not apply to its proposed merger with MediaOne and is forcing them to reduce the overall cable assets across the new empire. This is both good and bad, good because broadband access is more widespread, but bat because the monopoly of old seems to be making a comeback. " It seems that the FCC is requiring AT&T to give up MediaOne's stake in Time Warner, and/or 11.2 million other cable subscribers, so that they control under 30% of the cable market. However, I've seen a lot of these Stop AT&T billboards where I live.

Comments

Stop AT&T?

[JamesSharman]

I had a look at the stop AT&T website and it seems a little strange, naturally I can understand the fear of anyone gaining a monopoly over the internet, but the 30% law you guys have in the US (Which seems to be being appropriately enforced in this case) would prevent that. The webs sites also states "And we need your help to keep big cable companies like AT&T from gaining a monopoly over the Internet". This struck me as a little strange, more than one company can't have a monopoly over the same area, obviously I must then assume that the site is against companies having a monopoly over a confined geographic area. Unfortunately, because of the way cable financing works it's almost impossible for this not to happen, large numbers of companies laying different sets of cable to your street is financially prohibitive.

Instead what is needed is some kind of regulation giving access to the existing cables (at a fair prices) to other companies. One of the most interesting things set to happen here in the UK in the next couple of years is the opening of the local telephone cables, our regulatory authority (OFTEL) is giving anyone access to the actual wires that run to peoples houses. This allows for a decent level of competition without a massive investment in infrastructure.

less and less choice

[G27 Radio]

I used AT&T for several years for long distance, Internet, and even local toll calls for part of a year. I ended up ditching them because they started sending me bills for services I never had with them like Wireless. The bill was only $50 or $100 and I spent at least 3 hours (no exagerration) trying to get it cleared up. Even after it was supposedly fixed I continued to be billed so I dumped AT&T for another LD company. I swore I'd never do business with AT&T again.

So now, two years later they are buying MediaOne, my Internet provider. So I'm left with no choice but to pay my hard-earned money to AT&T again (or give up my cablemodem.) This is a good example of how a company like AT&T can work to limit your choices and get away with it.

BTW, another company that I'm not to happy with is Verizon wireless. I had a PCS phone through PrimeCo for the last year and a half. Recently Verizon bought them--when I received my bill it was much higher than I expected but it didn't list any of the calls that were made so I called them up to ask for an itemized list of the calls. I was told that they no longer provide an itemized list of your calls unless you pay extra. This isn't directly related to the AT&T/M1 story, but I just wanted to express my opinion that Verizon SUCKS!

numb

big media (again)

[chitselb]

First of all, it's "services," not "servises." And "bat" should have been "bad." Editor!

Moving to the substance of the matter, here we see big media news coverage of Yet Another Big Media Merger. Does it occur to anyone besides me that:

1) CNN's coverage of a competitor's mega-merger might be um... somewhat biased?

2) Leaving the details of this one particular mega-deal aside, it's kind of strange that such an enormous concentration of media power has been placed into the hands of so few people in an alleged Democratic Republic?

In other words, would it really make a difference if we give all the control to a single corporation over all the media (cable TV, broadcast TV, radio, broadband, dialup, newspapers) vs. splitting it up into a cartel of a dozen or so companies? If an advertiser will eagerly pay millions of dollars for a single 30-second spot during the Super Bowl(tm), it could only be for one reason -- because it works. One of the reasons I avoid watching TV is that I believe the same holds true for the other 99.9996527778% of the year. This is taking place in an era where, in theory, just about *anyone* can garner a worldwide audience for their idea, if it is good enough, using readily available, affordable equipment. Why then are so few people (RIAA, MPAA, Disney/Go/ABC, MS/NBC/GE, etc...) in control of the intellectual marketplace?