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New AT&T Acquires BellSouth

spune writes "Only months after SBC's acquisition of AT&T last November, the newly rechristened telecom has announced that it plans to buy fellow Baby Bell BellSouth Inc, of Atlanta, Georgia for $67 billion. This action by AT&T will consolidate more than half of the original Bell System into a single entity, leaving only Verizon and Qwest as remaining Bell family competitors. Analysts predict this deal will be approved by the FCC with only minor restrictions on the new company, which will serve residences and businesses from California to Florida."

87 of 406 comments (clear)

  1. Headline should read... by Spazntwich · · Score: 5, Informative

    "AT&T puts into motion plans to acquire Bellsouth."

    Hurray for fucking retard editors who can't be bothered to check headlines for accuracy.

    1. Re:Headline should read... by Spazntwich · · Score: 5, Insightful

      Well, in English, we have certain things called "tenses."

      Tense is generally used to indicate a timeframe relative to the present when something happened, is happening, or will happen.

      Notice how in the article, they state that AT&T is planning on acquiring Bellsouth. If you read further, you'll notice other sources say the FCC approval process could easily take around a year.

      Because, if this is going to happen, it will be happening in about a year, saying "AT&T acquires Bellsouth" creates a tense error, and if you want to really get technical, yes, it is a fairly big deal especially if you consider how significant the error is.

    2. Re:Headline should read... by Odin's+Raven · · Score: 3, Funny
      Well, in English, we have certain things called "tenses."

      They're what our Boy Scoutses sleepses in.

      --
      A marriage is always made up of two people who are prepared to swear that only the other one snores.
  2. So what was the point by DaveInAustin · · Score: 5, Insightful

    Of the original breakup anyway? The baby bells are buying each other and Ma bell.

    --
    --- http://davidnehme.blogspot.com
    1. Re:So what was the point by incast · · Score: 4, Insightful

      Things have changed quite a bit in the 26 years since the breakup. Back then, you either paid Bell's rate or didn't have a phone. Now there are much better substitutes (cellular, VOIP, etc.) and the potential for international competition which should serve to keep a cap on the amount of market power that monopolistic firms can exercise here.

  3. A long time ago in a galaxy far far away by BadAnalogyGuy · · Score: 5, Funny

    War!

    The Republic, with the help of its Jedi soothsayers, foresaw trouble ahead, leaving Ma Bell in one piece and to her own devices. Ma Bell fought back with all her might, but was torn to pieces by the deadly lightsabers of the Republic.

    Several decades later, inefficiencies in having separate phone systems have led to the collaboration of those separated parts. Their merger begins anew their gradual domination of the Republic's phone systems. This time, the Republic isn't so concerned.

    1. Re:A long time ago in a galaxy far far away by BadAnalogyGuy · · Score: 2, Funny

      Why does this eerily sound like an actual Star Wars plot?

      Because George Lucas has made a mockery of your cherished childhood memories.

    2. Re:A long time ago in a galaxy far far away by Ph33r+th3+g(O)at · · Score: 3, Funny

      Probably because of the AT&T logo's resemblance to the Death Star

      --
      I too have felt the cold finger of injustice.
    3. Re:A long time ago in a galaxy far far away by unitron · · Score: 2, Funny
      "Why does this eerily sound like an actual Star Wars plot?"

      Where do you think the plot came from originally? Don't you remember that AT&T had their own Death Star?

      --

      I see even classic Slashdot is now pretty much unusable on dial up anymore.

    4. Re:A long time ago in a galaxy far far away by BobGregg · · Score: 3, Funny

      >>Probably because of the AT&T logo's resemblance to the Death Star

      When I worked at Bell Atlantic (Verizon) several years ago, my favorite joke was that AT&T might have had the Death Star, but by God, our spokesman was Darth Vader!

  4. She's back by darkjedi521 · · Score: 4, Insightful

    Give it a year or two, and Ma Bell will be back, only without the cool bits this time (Bell Labs).

    1. Re:She's back by sg3000 · · Score: 3, Funny

      > The New AT&T could probably buy Lucent for a medium sized bag of P-type ringers.

      And by lining his grave with magnets, they can use the power of a furiously-spinning Judge Greene to charge their backup batteries.

      I hesitate to think what's going to happen to the big telecom infrastructure vendors. When their customers merge, can it be far behind for Alcatel, Cisco, Ericsson, Lucent, Marconi, Motorola, Nokia, Nortel, or Siemens?

      --
      Insert simplistic political, ideological, or personal proselytization here.
  5. Oh, no! by SEWilco · · Score: 2, Funny

    Say it ain't so, Ma!

  6. Well, all I have to say is: by Chas · · Score: 5, Funny

    I for one welcome our "Old Is New Again" phone overlords.

    When do I sign up for actually renting my telephone again?

    *sigh*

    --


    Chas - The one, the only.
    THANK GOD!!!
  7. Wait a minute by truckaxle · · Score: 2, Interesting

    Didn't the Government spend a decade and millions of dollars breaking ma bell into piece and now we are only watching those piece reassemble. Unfortunately for most people internet access only comes thru the phone company and a system lacking competition in this vital area is not healthy

    1. Re:Wait a minute by evilviper · · Score: 2, Insightful
      and a system lacking competition in this vital area is not healthy

      When did we EVER have competition? Except in the biggest markets, people have never had any choice for their local telco.

      The only difference between now, and when it was a monopoly, is that they go by a different name in different areas. They're still just matching each other's prices, terms, etc.

      The whole idea of a telco is antiquated. Now, at least we're seeing competition to the telcos via cable and wireless providers.

      It probably was just a waste to break AT&T up. What good things can you list, that have come out of it?
      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
    2. Re:Wait a minute by Bios_Hakr · · Score: 2, Interesting

      Today, if you walked into a RBOC and asked to buy/lease local loops or rackspace, they'd have to let you. 30 years ago, they'd have laughed in your face.

      In fact, when you buy a SpeakEasy line, that's what happens. You buy the line from SE. SE buys a slot on the local DSLAM and pays to have it connected to your loop. Because SE is buying 1000 lines at a time, they can get them cheaper than if you bought it directly from your RBOC.

      --
      I'd rather you do it wrong, than for me to have to do it at all.
    3. Re:Wait a minute by lordkuri · · Score: 4, Informative

      Today, if you walked into a RBOC and asked to buy/lease local loops or rackspace, they'd have to let you.

      Not since 2002, that was overturned. source

    4. Re:Wait a minute by BenFranske · · Score: 2, Interesting

      AFAIK if you're a real CLEC they still need to share the pair. It also doesn't really matter because the ILECs have discovered it's more profitable to share the pair and then not have to deal with any customer service than it is to do it all in-house. My understanding is they make more actual profit (after you subtract customer service costs) on the shared lines. The reason they don't drop service and strictly become a wholesaler is none of the CLECs (even together) are big enough to handle the volume.

    5. Re:Wait a minute by evilviper · · Score: 2, Informative
      Ma Bell charged, what, a dollar a minute or something along those lines? I don't know how important it is for it to stay broken up now (keeping in mind that cable can provide internet access), but it pretty obviously brought down long distance prices back when that actually mattered a lot (no widely available email in those days).

      No, the continual advance of technology brought down long-distance prices... In fact, it was the microwave communications systems, which AT&T invented, which made it possible for 3rd parties to provide long-distance service in the first place. Without that, companies like MCI would have needed to actually lay copper lines for each phone call across the entire country...

      However, that's somewhat besides the point, because I was refering to local telco service... Long distance service can still be made competitive.
      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  8. Re:They're trying to get it done quick. by lordkuri · · Score: 5, Interesting

    What really has me kinda worried, "AT&T" will now have a *very* substantial portion of the DSL market under their thumb. A lot of smaller (and some larger) cable modem providers are getting their upstream lines from AT&T Broadband.

    Now sure, they're under contract, but what happens when those contracts run out? Will we see another @Home debacle while the cable co's scramble to replace their uplinks, and ultimately end up paying a lot more for comparable connections and as a result, end up being forced to charge a helluva lot more to provide the same services?

  9. Inevitable. by Bob_Robertson · · Score: 5, Interesting

    The old AT&T government granted monopoly was never really ended. The so-called Baby Bells maintained government granted monopoly status over their respective regions, a monopoly status that is still in place.

    One of the most corrupt forms of merchantilism, these monopolies insulate the phone companies from competition and create the environment for them to simply buy each other all over again.

    The only thing Judge Green would have needed to do all those years ago was repeal (and prevent the states from reestablishing) monopoly protection of AT&T. Let competition come in where ever the established service provider was not providing decent service, or was charging too much, or anything and everything else that different providers use to compete for your, and my, business.

    But no, the regulators wouldn't release even slightly their death-grip on the phone systems, not really, so local monopoly grants continued. Now they're buying each other and the "anti-monopoly" types have the gall to act surprised.

    There is no such thing as a "natural" monopoly. Even Microsoft must continually innovate (or at least make people think that they innovate) in order to keep their customers. Only government is able to grant monopoly status, as was done with railroads, electric utilities, telephones. If some company is dominant in a field without those legal grants, they can only do so because they serve the customers better than their competition.

    I don't mean "provide better service", because even as Windows came to dominate I was already using Linux and understood that Windows was not providing "better service". I mean serving their customers better, by better serving their subjective wants whether an outsider would consider them objectively "better" served or not.

    Bob-

    --
    The Ludwig von Mises Institute. The reasoning individuals economics
    1. Re:Inevitable. by ScaryMonkey · · Score: 3, Insightful

      The only thing I would disagree with in your comment is that only the government can grant monopoly status; An already established monopoly (established, perhaps, by being the first implementer of a new technology) doesn't need government support to maintain its position, especially in areas where entry costs are high. In these cases the monopoly can often drive new competitors out of business by operating at a loss long enough to ruin the competitor's finances. In reality, of course, the collusion of government is often bought to support the monopoly since that's a cheaper way to go about it. But sometimes it's just the opposite, and government intervention is required to overturn a monopoly that has established itself by choking its competition in the free market.

    2. Re:Inevitable. by arkanes · · Score: 2, Insightful

      It's not a myth and you're an idiot for thinking it is. Nobody ever said that a high cost of entry was a *total* barrier to competition. It's just a signfigiant one, that has a very real and very powerful chilling effect on competition. Hand waving and deciding that no matter how inefficent a market might be, it'll always get better because "someone will innovate something" is ridiculous.

    3. Re:Inevitable. by squiggleslash · · Score: 5, Insightful
      You need to charter one ship across the Atlantic to compete with the East India Company. It's a one-off, and you'll make a profit.

      You need to lay an entire network to compete with an established phone company. The phone company you're competing with already has laid, and paid for, that company. So while you take twenty years to build your network and 40 to recoup your investment, you'll be somehow raising that money from customers who have the choice between your network, and the cheaper incumbent.

      How the FUCK do you compete with that? Are you on the same planet? There's absolutely nothing whatsoever you can do. If you promise "better service", the incumbent has plenty of time to improve their services. If you promise enhanced features, the incumbent can roll that out to all their customers before you've laid the lines in a single street.

      This isn't a myth. It's real. It's why nobody's building fully competitive networks, even in countries where it's encouraged. In Britain, the only competition was from cable TV companies, who were only able to get their networks built because BT was banned from selling television services. And I've never heard of someone asking to build a competing network and being told "no" by any American government. Why? Because nobody wants to.

      The only "competition" we'll see in the short term is from the cable companies. In the long term, we don't even know for sure that the cable companies and the telephone companies will not merge anyway. And we already know that a duopoly isn't enough to ensure buyer-focussed products.

      We need regulation. And we cannot wait for libertarian utopias to be proven idiotic, especially since I've never come across a libertarian who hasn't find something government related to blame any failure of deregulation upon. The wires should work for us.

      --
      You are not alone. This is not normal. None of this is normal.
    4. Re:Inevitable. by Roarkk · · Score: 2, Interesting

      >So while you take twenty years to build your network and 40 to recoup your
      >investment, you'll be somehow raising that money from customers who have the
      >choice between your network, and the cheaper incumbent.
      >
      >How the FUCK do you compete with that?

      Actually, competing with that isn't that difficult right now. What most folks who live in large urban areas don't realize is that in many smaller cities and towns, the phone, cable, and electrical lines are owned by a small private company or the local government. This ownership provides a strong basis (local support and adoption) for innovation.

      For example, I'm aware of several townships in Ohio right now that are receiving Fiber to the Home and have been for several months or years. Businesses come in, do an RFP, and submit a bid. The relatively low cost of implementation generally only requires a 15%-25% subsriber rate to give a reasonable ROI, and the consumers get a single wire coming in to their homes that provides not only digital telephony and HDTV, but realistic videoconferencing and 100Mbps Internet access.

      Lots of people want to build competitive networks. And they're doing so at this moment. While I accept (while strongly disagreeing with) your philosophy that government regulation is the answer to this and other issues, I take objection to your ignorance or deliberate FUD in saying that the current system includes neither competition nor innovation.

  10. Let them consolidate by MikeRT · · Score: 3, Informative

    Then they'll be regulated as a monopoly because no one will be able to argue with a straight face that there is a free market for telecoms. With monopoly status, they won't be able to argue that they are being forced to cut their prices down to unsustainable levels. Cheap broadband is nice and all, but if it's too cheap they aren't making enough money to support their infrastructure which is why access sucks in most of the country. As I've been saying, I'd rather they charge me $100/month for real 3mpbs up AND down than charge me $15-$40 a month for 3mpbs with an invisible cap on its monthly use. It makes more sense for them too. If they provide the bandwidth each month, Apple and others can provide the content which makes their service worth paying a premium for.

  11. Re:They're trying to get it done quick. by typical · · Score: 4, Insightful

    The inverse of that worked pretty well for the antitrust Microsoft trial.

    --
    Any program relying on (nontrivial) preemptive multithreading will be buggy.
  12. Cingular - we barely knew ya by geemon · · Score: 2, Funny

    Interesting that this deal consolidates the two owners of Cingular into a single entity. According to the report, all wired and wireless services will be brought to market under the AT&T brand name.

    All that time and enery to build the Cingular brand and now poof - in a year when the deal is closed, they will rebrand again back to the AT&T name. Seems like it was only a little over a year or so ago when my local AT&T Wireless store was relabeled with the Cingular name.

  13. Re:They're trying to get it done quick. by SacredNaCl · · Score: 4, Insightful

    Just like before the breakup...minus regulation.

    It does bother me quite a bit that they will have near total control of the DSL market.

    --
    Freedom is merely privilege extended unless enjoyed by one and all.
  14. Re:Problem with that logic... by incast · · Score: 4, Insightful

    The prevailing thought in the anti-trust/economics literature is that consolidation is generally regarded as a good thing in cellular..

    Basically, there are massive density economies in delivering cellular service (e.g. it's better to use a higher percentage of the capacity of one expensive tower vs. having four separate expensive towers running at lower utilization rates), and as such, there are efficiency gains that can come out of such mergers. We're more likely to see continuing consolidation in national cellular markets with a much bigger space for international competition. The companies want to move forward with consolidation, and the anti-trust authorities aren't really standing in their way.

    In the US, the anti-trust people really only care about post-merger consumer prices (rather than the increased profitability of the merged entity). The degree of substitutable goods and the nature of price competition in cellular markets seems to keep downward pressure on rates. This is why they are letting all this go through.

    As for VOIP (and the greater economy), you only need two firms to get good competitive results from these types of goods. Landline phones and VOIP are essentially homogenous products, and as such, it's perfectly logical to assume that people will go with the firm that offers them the best price/quality ratio. Outside of collusion, odds are good that you will see competition putting downward pressure on prices in landline telephony even if both landlines and VOIP are delivered by monopolies.

  15. Whining about it won't accomplish anything... by DaedalusLogic · · Score: 4, Informative

    Where is the line to start the fight?

    Fax or Call your Congressional Representatives.

    http://www.gpoaccess.gov/cdirectory/index.html

    Drop these guys a line.

    http://ftc.gov/

    If you are intelligent and well spoken... call your local news and make a case for this being a bad idea.

    Or, if you want to be an ineffective lump, go ahead and sit back and shut up... If you're going to complain, for god's sake aim your mouth in the right direction.

    I challenge every voting Slashdot reader to actually do something about this one and send a fax in tomorrow. E-mail can be filtered and ignored, but choking the phone lines that serve them will serve as an ironic way of showing how unhappy we are with the prospect of this merger.

    I am a customer of these organizations and I want this stopped in it's tracks.

    1. Re:Whining about it won't accomplish anything... by GrumblyStuff · · Score: 2, Insightful

      /. DC?

      I like your thinking.

  16. will I get three bills for service I don't have by anagama · · Score: 5, Informative

    Four years ago I made the mistake of signing up w/ AT&T. I cancled and paid off my bill (something like $14). Now, every four months I start getting bills, then the calls. I ignore them till they catch me. Then I ask for immediate acceleration. If I don't get it I curse a little (I've been doing this 3x/yr for 4 years now -- I'm not normally an asshole). Eventually someone says they see the problem and correct it. Every time I'm told this. And inevitably, the bills come back. Last time, when the person was through "fixing" it (I've since started getting bills again), she asked if I was interested in signing up for service. I laughed.

    --
    What changed under Obama? Nothing Good
  17. Re:This can't be good for the consumer. by thealsir · · Score: 2, Insightful

    The fact that the baby bells were called "regional bell operating companies" says a lot about how much they actually competed against each other.

    --
    Do not downmod posts "overrated" simply because you disagree with them.
  18. Cincinnati Bell by AubieTurtle · · Score: 4, Funny
    This action by AT&T will consolidate more than half of the original Bell System into a single entity, leaving only Verizon and Qwest as remaining Bell family competitors.
    Cincinnati Bell will be quite surprised to learn that it no longer exists.
    1. Re:Cincinnati Bell by Anonymous Coward · · Score: 4, Informative

      This action by AT&T will consolidate more than half of the original Bell System into a single entity, leaving only Verizon and Qwest as remaining Bell family competitors.

      Cincinnati Bell will be quite surprised to learn that it no longer exists.

      Possibly the summary was referring only to companies that were part of the original AT&T and were spun off
      as RBOCs way back when. Cincinnati Bell, despite it's name, was not actually part of AT&T; it was an independent company who licensed the right to provide service for the Cincinnati area.

  19. Judge Green by mknewman · · Score: 3, Insightful

    Judge Green must be rolling in his grave.

  20. Hasta la vista, Baby by Anonymous Coward · · Score: 3, Funny
    Why am I reminded of the scene from Terminator 2 where the T-1000 is blown to bits and the liquid metal droplets flow toward each other to self-arrange back into the T-1000 ?

    T-1000

  21. Re:I say GOOD by LurkerXXX · · Score: 2, Insightful
    You expect Ma Bell to give you better rates???

    You must be a young'en. Let me tell you about how it was back in the day. Ma Bell used to charge a monthly rental fee for each and every phone in your house. Not each line into your house, each phone hooked up that that one line. Want another phone in another room for convenience? You have to pay for it. Each and every month. You weren't allowed to buy your own phone, you were forced to rent theirs.

    Ma Bell coming back is NOT a good thing for consumers.

  22. Oh by PacketScan · · Score: 3, Funny

    Shit.

  23. Re:This can't be good for the consumer. by NorbrookC · · Score: 3, Insightful

    Less competition = less push for innovation, higher prices, and every reason Bell was broken up in the first place.

    No, it was broken up because of an antitrust suit brought by MCI. The sad part was that AT&T was one of the most innovative companies in the world. Witness the transistor - a Bell Labs product. If anything, the monopoly hurt them because they were not (because of regulations) allowed to take advantage of their innovations outside of the telephone market.

    What they did have was something that's been dropped - service. You needed a phone installed, it was done, and done quickly. Have a problem? Fixed. Need to talk to someone about an issue? There was someone on the end of the line. Compare that today's "advantages". Need a phone installed? Wait a week or two. Got a problem with your line? Maybe they'll get around to fixing it in the next month. Have a problem with your bill, or need to talk to someone about an issue with your phone service? Welcome to the support hell of pushing buttons, listening to recorded messages, pushing more buttons, and maybe at the end of it you'll get to talk to someone who may speak English. (sarcasm) Oh yeah, we're so much better off!(/sarcasm)

  24. Re:Problem with that logic... by Sterling+Christensen · · Score: 3, Insightful

    Except VOIP depends on internet service, which is provided by the phone company competing with that VOIP...

  25. Cingular Wireless to be rebranded too by rufey · · Score: 2, Interesting
    Cingular, which absorbed AT&T Wireless in October 2004 when it was purchased by SBC and BellSouth (and now owned by new AT&T and BellSouth), will also have its name dropped in favor of the AT&T name.

    From MSNBC: After spending millions of dollars to rebrand AT&T Wireless Services Inc. stores as Cingular stores and hundreds of millions of dollars more on marketing the new Cingular after its $41 billion acquisition of AT&T Wireless in October 2004, Cingular will now become AT&T if the merger with BellSouth is completed.

    So for all of those who at one time had AT&T Wireless as your cell provider and stuck with them through the Cingular Wireless purchase and are still with them, you'll now be moved back to the (new) AT&T brand. I would have been one of them had my compnay not switched to T-Mobile 3 weeks ago.

  26. Re:Problem with that logic... by Majik+Sheff · · Score: 2, Interesting

    This is true and is an excellent illustration in how vertical integration is the real enemy of free markets. For the cellular market this means that one company should own the towers and lease antenna space; other companies place antennae on the towers and lease connectivity to carriers, and then cell companies lease bandwidth from the carriers.
    When a company begins to own more than one component of the system, free markets go bye-bye.
    Something similar is occurring right now in the midwest with livestock operations. Food packing companies are attempting to buy out local farming operations, thereby cutting brokers out and removing much of the commodity nature of the industry. One step closer to monopolistic reign.

    --
    Women are like electronics: you don't know how damaged they are until you try to turn them on.
  27. Re:Problem with that logic... by ciroknight · · Score: 4, Insightful

    While you make an elegant argument, you forget that AT&T will control a significant portion of the DSL market, which would allow AT&T to set forth the same anti-trust/anti-competitive behavior (by filtering VoIP data).

    Not to mention AT&T would then have control of the bigger half of cellular customers in America (Cingular/AT&T Wireless). The last step would be their re-acquisition of Verizon (which would be epic at this point, as Verizon just acquired MCI, which was one of the companies AT&T flagged as a "competitor" in their earlier anti-trust proceedings).

    So as a consumer, I can see this leading down a very dark road for consumers.

    --
    "Victory means exit strategy, and it's important for the President to explain to us what the exit strategy is." G.W.Bush
  28. This deal might just bring down SBC! by Anonymous Coward · · Score: 5, Interesting

    As the owner of the oldest ISP in South Carolina, I can honestly say that BellSouth's is full of crap about their estimated value of their lines and billing. We have 63 locations in Georgia, NC, and SC now, and in almost all of the locations, BellSouth struggled to even connect a simple T1. Very often, they had trouble even delivering a few POTS lines. Yes, we still offer 33.6 dialup in many areas since BellSouth is too incompetent to configure some of their switches to handle PRI. The only employees they have left have no experience and most are simply incompetent. My grandfather, father, and two of my brothers worked as repairmen for them. They've all retired or retired early. The only people still on the payroll have no idea what they're doing. They can't even troubleshoot simple POTS lines. Most of their local copper lines are complete crap. BellSouth really started cutting corners on the quality of their wires in the mid 80's. When looking for new locations to open a POP, I go to buildings built before 1980 since they have much better wiring to the building than the newer BellSouth garbage.

    My mother worked in their payphone operation division. They were so incompetent, that that division went under in 2003. BellSouth couldn't even keep their own damn payphones working. According to my mother, at one time in her area over 40% of the BellSouth payphones were inoperable due to BellSouth problems. Payphones were first made in 1891, and BellSouth couldn't even keep that 100+ year-old technology working. Because of that my mother now works as a cashier in a grocery store.

    About the billing. They bill us about 20 times (not a typo) what they actually should. I have an employee that spends almost full-time dealing with their billing screw-ups. WorldCom used to inflate billing like that...right before their billing claims were exposed a complete fraud. BellSouth certainly seems to be headed the same way.

    You can summarize BellSouth by the outdated or inferior equipment, a very incompetent workforce due to layoffs and early retirement, substandard wiring, and inflated billing. I don't see this going well at all for SBC.

    1. Re:This deal might just bring down SBC! by SmurfButcher+Bob · · Score: 2, Insightful

      Well said.

      The part that you left out, additionally, is that this lack of talent is exactly what the public wanted.

      We want 6 cents per minute? 5? 3? 2? People aren't free - and you know full well how much a *competent* lineman or switchman costs. Given the promise of an automated "smart" system that is run by monkeys, or a legacy labor-intensive, skill-based system that requires "experience" (e.g. TIME)... Cheap, Fast, Correct: Guess which two we (the customers) picked.

      In short, we're getting exactly what we were willing to pay for (external forces aside, such as MCI cooking their books, thereby causing market reactions to a fictional situation, etc).

      Yes? No? Maybe?

      --

      help me i've cloned myself and can't remember which one I am

  29. Not quite by butlerm · · Score: 3, Interesting

    Not quite - the decision that you are referring to said that RBOCs did not have to share the *same* copper pair with DSL providers. CLECs can still get their own lines.

    The really scary part is the recent FCC decision to classify DSL as an "information service" that does not have to support independent ISPs at all, a decision that gives the Bell operating companies free a complete exemption from common carrier rules that were written to prevent Ma Bell from engaging in precisely the type of behavior that the FCC decided to give them free reign to engage in. Things like blocking or degrading anything they feel like for example. The FCCs current discussion about Internet discrimination is mostly a bunch of hot air, because they exempted the RBOCs from the very laws designed to prevent stuff like that.

  30. 2600 had a nice cover about this by mr_burns · · Score: 3, Interesting
    http://www.2600.com/covers/fa042.gif

    Crazy that is was a year and a half ago. But still pretty topical. And I'm pretty sure those of us old enough to remember the days of many RBOC's can identify with the statement.

    --
    "Let him go, Ralph. He knows what he's doing." --Otto Mann (simpsons)
  31. Great Wikipedia chart of Bell System companies by massysett · · Score: 3, Informative
    http://en.wikipedia.org/wiki/Image:Rbocs.gif

    If Verizon buys Qwest, we're down to two phone companies!

  32. Re:They're trying to get it done quick. by Your+Anus · · Score: 5, Funny

    I find your lack of faith... disturbing.

    --

    In the USA, we like stuff watered down, like beer, television, and freedom.
  33. Re:They're trying to get it done quick. by Doc+Ruby · · Score: 2, Insightful

    The other biggest monopoly verdict, Microsoft, was issued right before the Bush administration took over. Then, right after they took over, nothing substantial was done to Microsoft to "remedy" their monopolistic abuse. Their market position, and the anticompetitive techniques with they abuse it, hasn't changed.

    If Republicans keep the White House even after AT&T returns to a scale similar to its mid-1980s monopoly, there is no chance that either AT&T or Microsoft will see either monopoly status "revisited". In fact, they will redefine American monopoly law together. Legitimizing it, reversing a century of government representing the people defending ourselves from monopoly market predators.

    Probably even more important than the White House, the Republican Congress is responsible for oversight of telecom and corporate takeovers. Which means AT&T has to get back on monopoly track before Democrats possibly retake the House, Senate or both this November.

    --

    --
    make install -not war

  34. Obligatory Highlander Quote by gbobeck · · Score: 2, Funny

    "There can be only one!" (Connor MacLeod, amongst others)

    --
    Navicula hydraulica plena anguilarum est. Omnes castelli tuus nostri sunt. Ed elli avea del cul fatto trombetta.
  35. Re:Problem with that logic... by moosesocks · · Score: 2, Interesting

    But this all goes away if phone companies are allowed to "share towers"

    Correct me if I'm wrong, but don't Cingular and Verizon already lease tower space from each other to cut down on costs?

    In this case, density economics don't play anywhere nearly as big of a factor.

    --
    -- If you try to fail and succeed, which have you done? - Uli's moose
  36. Online petitions by mnemonic_ · · Score: 3, Funny

    Hey, what about online petitions? Those work great.

  37. Breakup was along the wrong lines. by IGnatius+T+Foobar · · Score: 4, Insightful

    The 1981 breakup gave the Baby Bells "local dialtone" and big AT&T (and others) "long distance." Now that the technology has all changed, this line of demarcation is obsolete.

    It's time for another breakup, and this time it should go as follows: the RBOC's (soon to be the One Big BOC) maintain the physical cable plant, and they maintain the central offices basically as colocation facilities. Then, you have carriers (none of which are allowed to be RBOC's [or the imminent One Big BOC]) as colocation customers in those central offices. They lease customer loops from the BOC/LEC/whatever and then they provide "telecom services" over those loops. We don't care what the services are -- dial tone, DSL, whatever. No distinction between voice and data, between local and long distance, whatever, because as we know, it's all the same crap now.

    THAT is the perfect way to keep the government-granted monopoly working efficiently for consumers. The monopoly must extend only as far as it needs to, and no further.

    --
    Tired of FB/Google censorship? Visit UNCENSORED!
    1. Re:Breakup was along the wrong lines. by sydbarrett74 · · Score: 4, Interesting

      Mod parent up! What you just described is *exactly* what the UK government forced upon BT, and the UK enjoys some of the lowest rates and highest penetration for broadband in the world. We should use the BT divestiture as a model for this country...

      --
      'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
  38. Re:They're trying to get it done quick. by Baricom · · Score: 3, Informative
    Fortunately, I'm a cable subscriber, so I'm not too worried about any direct effects...yet. However, BellSouth's position on net neutrality isn't much better than AT&T's. They start by proclaiming themselves strong supporters of net neutrality, then go on to define exceptions to that support:

    However, BellSouth opposes those proponents of net neutrality who seek to render DSL service as nothing more than a "dumb pipe." Under BellSouth's view of net neutrality, the essential consumer protection is clear disclosure in the service plan agreement...Broadband networks providers should be able to manage bandwidth...[and] should be able to curb network usage (such as peer-to-peer file sharing) that consumes a disproportionate amount of bandwidth and may adversely impact other network users....Broadband network providers should be able to offer different plans that feature enhanced levels of service or that promote their own brand names and products or the services of selected vendors. For example, BellSouth should be able to enter into arrangements with content providers by which the content provider pays for special treatment, such as preferential listing or faster downloads from that provider's website or receiving a higher quality of service. (emphasis and length-editing mine)
  39. Re:They're trying to get it done quick. by bladernr · · Score: 3, Insightful
    Just like before the breakup...minus regulation.

    Not even close. The biggest thing is competition in the local phone market. Now the copper-loop provider competes in more and more markets with the cable provider, and is starting to compete with the power provider. Soon new providers may be offering Wireless Local Loop. AT&T also is far from having a monopoly on long-fiber: gas companies, power companies - even Google - have that stuff. It is this type of inter-modal competition that means it makes sense to merge. You have to bulk-up to compete. Not merging would be suicide.

    At the end of the day, it is very likely the consumer will buy all of their communications products (voice, video, data, and mobile) from a single provider, and competition will be in the bundle. If providers don't offer all four, buying from them will make about as much sense is a buying from a car maker that sold the entire car minus the wheels and seats.

    It is in fact de-regulation and intense competition that make this move necessary.

    --
    Sarcasm and hyperbole are the final refuges for weak minds
  40. Member-owned cooperative by core+plexus · · Score: 5, Interesting
    My phone, internet, mobile, and DTV are all supplied by a member-owned cooperative (Matanuska Telephone). I used to have service through corporate suppliers, but switched years ago, and am glad I did.

    The service costs less, and after the infrastructure and upgrades are paid for, I get a check back every year. Plus, we get to vote on stuff, and we own the company.

    Only way to go, IMO.

  41. Re:They're trying to get it done quick. by Doc+Ruby · · Score: 5, Insightful

    Bush is the president - responsible for running the country. The cruel irony is that Bush can be described only as irresponsible.

    Bush was warned about Katrina's risk of flooding New Orleans, went on vacation instead, and resurfaced long enough to lie about no one anticipating the levees would fail.

    He was warned about Global Warming, and instead has his administration gagging NASA scientists while presiding over the biggest increases in Greenhouse emissions ever. Now the ice is melting even faster than the scientists predicted.

    Bush took office with Microsoft ruled a monopoly, and his Justice Department let them continue unabated. The years since have seen continuing abuses, but only foreign courts are doing anything about it, because Bush won't do anything to protect the market. A market that has remained unsafe for new competitors during his stewardship.

    Bush was warned that Iraq would collapse into civil war, and now acts like its just a nasty surprise - while he isn't denying it's happening. He got a daily intelligence brief titled "Bin Laden Determined to Strike in US", after repeated warnings from Clinton's outgoing team and Clarke, the counterterrorism administrator who stayed on. Then he acted surprised when his deprioritization collected the 9/11/2001 planebombings. He was warned before N. Korea got the bomb, before Iran got the bomb, that cutting taxes on the rich would keep the regular economy moribund, that screwing with the Mideast would keep oil prices sky-high.

    So maybe you know something about Bush and the Superbowl that we haven't heard yet. Anonymous Cheney, is that you? Shouldn't you be at target practice, or something?

    --

    --
    make install -not war

  42. Re:Problem with that logic... by Jah-Wren+Ryel · · Score: 2, Interesting

    you forget that AT&T will control a significant portion of the DSL market, which would allow AT&T to set forth the same anti-trust/anti-competitive behavior (by filtering VoIP data).

    Perhaps now the nature of recent attempts to create a tiered internet is revealed as a stalking horse.

    Since these guys are going to have to make some sort of "compromises" in order to pass regulatory scrutiny, what better compromise than to sacrifice something they don't have anyway? Make a bunch of noise about multi-tiering and then tell the FCC that they will support a law that explicitly makes tier-type pricing illegal. Then ReBell (short for Resurrection of Ma Bell) gets to proceed with the merger(s), and the cable companies are now prevented from pursuing tiered internet pricing as part of said hypothetical law,

    --
    When information is power, privacy is freedom.
  43. Re:Problem with that logic... by W.+A.+Dragunov · · Score: 2, Informative

    While that maybe true. SBC now AT&T Inc. have 60% control of Cingular, which bought AT&T Wireless. Bellsouth owns the other 40%.

    --
    Tries hard. Fails to achieve the low standards he sets himself. Works well with a broom
  44. Re:They're trying to get it done quick. by Austerity+Empowers · · Score: 3, Funny

    Funny, the original death star (see the AT&T logo) was destroyed nearly 22 years ago. Now, a new one is being built, right in front of our faces.

  45. Re:They're trying to get it done quick. by macdaddy357 · · Score: 3, Insightful

    What the hell did they break up Ma Bell for if they are just going to let it corporate merge itself back together?

    --
    How ya like dat?
  46. I see the future.... by borgheron · · Score: 2, Interesting

    First there will be a merger between Verizon and Qwest forming Veriqwest or, my personal favorite, Qweerizon, whichever you prefer. The reason given for this merger will be to allow them to more adeptly compete with the new AT&T. Once the new entity starts to loose ground, the new AT&T will gobble it up and then it's "HELLO, MA BELL!"

    GJC

    --
    Gregory Casamento
    ## Chief Maintainer for GNUstep
  47. Comment removed by account_deleted · · Score: 3, Insightful

    Comment removed based on user account deletion

  48. Well by einhverfr · · Score: 2, Informative

    It is hardly "half" of the old Bell system. Remember that in its heyday, the Bell System included Western Electric Corporation (WEC, own and run mostly by AT&T), Nippon Electric Corporation (NEC, which WEC owned a majority share in), Bell Labs, and a number of other organizations.

    Yes it is disturbing. Yes, it is threatening. But no it is not even close to half of what the Bell Network used to be.

    --

    LedgerSMB: Open source Accounting/ERP
    1. Re:Well by nelsonal · · Score: 2, Insightful

      Yeah, but the value of the whole thing was almost solely due to the complete ownership of the national local phone loops. The companies you mention were all either ways to extract more value from the loops (lease them equipment to access the loops) or something to do with the money that looks better in the papers than swimming in it Scrooge McDuck style.
      That said, the environment is considerably different now, and just as AMTRAK has a monopoly on passenger rail but hemmorages money, I'm not sure that a phone monopoly is worth all that much today.

      --
      Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
  49. I used to work at ATT in AntiTrust Litigation by Ralph+Spoilsport · · Score: 5, Informative
    I worked as a paralegal "research analyst" working directly for the lawyers involved, and I can assure all that the break up of ATT was not the defeat of some evil megacorp at the hands of some valiant heroic upstarts. It was an ugly battle by giant corporations, all of whom were evil Evil EVIL, when they weren't being incompetent and utterly stupid.

    Did ATT deny MCI, Sprint, ITT, sonitrol, and everyone else involved access to their lines?

    Yep.

    Was MCI a giant grasping hellhole bent not on defeating ATT, but becoming ATT?

    Yep.

    Was Sprint an incompetent bunch of losers who couldn't find their own butts with a flashlight, a map, and both hands at the ready?

    Yep.

    Was Sonitrol along for the ride?

    Yep.

    Was ITT a vast corrupt corporation run by thugs?

    Yep.

    It's all there in the evidence - which fills a freakin' warehouse somewhere. Representatives of ITT threating people, Sprint incapable of figuring out how to bill their customers, MCI pulling all kinds of nasty shenanigans on ATT and other providers - and ream after ream of circuit listings noting that the denial of service was for "Reasons Unknown" - it was ugly. Truly nasty. There were no good guys in that case.

    And now ATT wants to rebuild its empire. Well, it's a different world now with VOIP, Cellphones, cable modems, etc. Even if they do corner the DSL market, there's another market out there...

    I don't if I should laugh or cry for all my wasted effort in that messy trial.

    RS

    --
    Shoes for Industry. Shoes for the Dead.
  50. Southwestern Bell, AT&T, and BellSouth by gmajor · · Score: 2, Insightful

    I've had horrible experiences with all three companies. I would seriously consider shorting AT&T stock now. Combining two bureaucratic and inept companies will never work!

    I took a chance with SBC local phone service two years ago. I tacked on DSL for convenience, but soon regretted it. Every encounter with SBC has resulted in pain and grief. There were numerous misbillings. As soon as I had the chance to switch, I cancelled my service. I will never ever go back to them. I had the same experience with old AT&T. In fact, I currently do not use a land line. If I were to get one, I would use one of the cable companies.

    I don't know how these companies can make or sustain profits when they treat their customers like they treated me. There must be some financial shenanigans occurring behind scenes. You can't run a successful business by pissing off your customers.

    1. Re:Southwestern Bell, AT&T, and BellSouth by EmagGeek · · Score: 2, Interesting

      Yes, serious financial shenanigans. It's called getting billions in government tax breaks at our expense to do a half-assed, incomplete job rolling out a few new fibers here and there and leave them dark.

      I used to live in Radnor Township just outside Philadelphia, and verizon spent an entire summer ripping up my neighborhood to install fiber everywhere. That was 4 years ago, and that fiber is still dark. Verizon has told me that they have no plans of ever lighting it up.

  51. I'm all for this as long as... by Bodysurf · · Score: 2, Interesting

    The new SBC, ATT, Bellsouth, Cingular, whatever will run fiber to my house like Verizon is doing.

    Their current Project Lightspeed is dead before arrival.

  52. Re:They're trying to get it done quick. by dubl-u · · Score: 3, Funny

    It is in fact de-regulation and intense competition that make this move necessary.

    I find this pretty implausible. If they were actually facing real competition, wouldn't they suck slightly less?

  53. In related news: by 1-dollar · · Score: 2, Funny

    In related news: AT&T says that SCO, Novell, and everybody else is wrong.... THEY own Unix.

  54. Re:Problem with that logic... by Widowwolf · · Score: 2, Informative

    Try again. This is how it went..AT&T wireless was 100% controlled by ATT, Cingular was 60% controlled by SBC and 40 % controlled by bell south. Cingular wireless bought out ATT wireless completely, and the company, still called Cingular wireless, still is owned 60% by SBC and 40% by Bellsouth. Then comes a long a merger between SBC and ATT, which brought the company now to be named AT&T (all lowercase letters). Now at&t wants to buy out Bellsouth, land and the 40% that they own of Cingular Wireless. Which makes at&t(formerly SBC (changed its named due to at&t brand having more name recognition)in 100% control of Cingular Wireless(which is probably going to be named changed to at&t wireless(the only reason that it is still called Cingular is because Bellsouth fought to not have to put all the money into what is called "rebranding" the name in the first place), all of the old AT&T, all of Bellsouth, and all of their original areas that the old SBC covered). You want to know why I know this. I work for what is now at&t, and my wife works for the current Cingular call center)

    --
    ~~"Of course, that's just my opinion. I could be wrong." ~~Dennis Miller
  55. That's bull (was: Re:Inevitable.) by linuxrocks123 · · Score: 2, Insightful

    'There is no such thing as a "natural" monopoly.'

    Bull. Water service, for example, is a natural monopoly because of the ridiculous inefficiency associated with RUNNING COMPETING PIPELINES to EVERY HOUSE. A natural monopoly results whenever there is such an economy of scale that only one provider can efficiently provide the product or service. With new techonologies, these types of products and services are becoming less common, but they still exist.

    'Only government is able to grant monopoly status'

    Bull. If there is a natural monopoly in an area, the free market will cause there to be only a single provider. Even if there isn't a natural monopoly, given large enough startup costs, the first provider in a market can sometimes maintain his initial monopoly through predatory pricing or the threat of it. This is harder to do when it is illegal, like it is in the U.S.

    You made some goods points in your post, but the last two paragraphs are just nonsense. I can understand where you're coming from, though, because I used to think the same way. When I was 10.

    --
    vi ~/.emacs # I'm probably going to Hell for this.
  56. Re:This can't be good for the consumer. by JimB · · Score: 3, Insightful

    The trick is that AT&T was broken up BECAUSE of the TYPE of regulation they were under. When AT&T created a "phone system" (Panel, Crossbar, ESS), they designed it for at LEAST 20 years. 20 years ago we were amazed by the "New 386". This was mostly the result of the regulated ROI. Yes they made things to LAST, but they HAD to. They NEED to have a good incentive for FASTER turnover, MORE innovation. MCI and Sprint came along and sold only to the lucrative long distance market, AT&T's bread & buttter. The Long distance market used to help PAY FOR local service. It was set up that way. When the lawsuits started piling up against AT&T, Charlie Brown decided "forget it". He took the chance that the "Bell Children" would be profitable because they would be mostly deregulated. He was right.

    This does not mean that "the New AT&T" will do us any good. Without SOME sort of regulation, we're done for. ALSO, you all forget that Verizon *IS* the other "BIG" comprtitior --> GTE. And YES, they are "fated" to merge. Eliminating ALL "big" phone companies, and getting back to one. But we NEED them to be REGULATED. SERVICE was ALL the old AT&T cared about. It was 1,2, & 3 of the top five things they worked toward. We also have to let them make money off their inventions. The old rules did not allow that.

    The key to all of this is creating regulation that REWARDS innovation. Bell labs did the transistor, the first work on disk drives, the LASER (independently, but later than Gordon Gould), TELSTAR, and on and on. Without the proper fiscal incentives, innovation will "not be worth it", from THEIR point of view.
    Without innovation, we ALL lose, BIG-TIME.

    I think this can be a good thing, if we do it right. I also think it is inevitable. The ONE thing we have to LOSE if the 1980's mentality. Greed is NOT good. If we have a single Bell system, and pay the CEO $100 MILLION a year, we are done for. [By modern scales the CEO of the largest company in the world is worth $100 Mil. We cannot have that kind of thinking.]

  57. Will it matter, though? by WheelDweller · · Score: 2, Interesting

    Bell Labs/Ma Bell/"The phone police" did one thing for about a century: run lines to people an d get'em connected. That was their main stock in trade. Maybe the merger means they'll all move to the same methodology- that cost savings, in the long run won't be a problem, but they have ONE PROBLEM that's got me bugged.

    I'm just outside the city limits- about 3 blocks. There's only 2 DSL points...CLECS?...in this town of 250,000. The second one is on the other side of town, and useless to me. I'm stuck with fiber-backboned cable, so I'm thankful the only choice is at least a good one.

    Now...my brother.

    He lives three miles west of me. Out there, it's farmland. Deer are seen _every_night_ that he goes home. Huge "shredded wheat" rolls are parked here and there, and everyone knows what brand of tractor they have, and want. Everyone knows the county extension agent, even if they don't farm- he's a neighbor, too.

    However, HE CAN'T GET DSL...not because he's even farther from the DSL point than I...but because, in his rural pastureland, his telephone service is based on FIBER OPTICS, and SBC won't let him tap into it, nor to use the increasingly-vacant copper lines to "leased-line-it" to my house. He's stuck on dialup at best, while we try to build towers and get an RF link up.

    Do you see the irony here? He can't get basic internet, because his farmland technology has outpaced mine in the city somehow. WTF?

    The company (and it's descendants) who built their industry on connecting people have two situations, very prevelant ones, in which they can't connect people. This isn't a technical problem, it's a policy problem.

    "The Innovator's Delima", perhaps?

    I spent a lot of time hating the old AT&T, not trusting that their components were really different somehow. My insticts are that we're all going to hate them, again.

    --
    --- For a good time mail uce@ftc.gov
  58. Re:They're trying to get it done quick. by Bogtha · · Score: 2, Insightful

    Because the USA of yesterday that broke up Ma Bell was a democracy, and the USA of today that is letting it remerge like a T-1000 is a plutocracy.

    --
    Bogtha Bogtha Bogtha
  59. Conglomo... we own you by shoptroll · · Score: 2

    Chalk this and the MS anti-trust suit up to the ineffectiveness of the Rockefeller Anti-trust Legislation...

    --
    Insert Sig Here
  60. Nationalisation by ObsessiveMathsFreak · · Score: 2, Insightful

    There comes a time, when a service, good or utility becomes so vital, so pervasive and so common in peoples everyday lives that a nation simply cannot afford to have this essential aspect of their civilisation in the hands of unscruplous private companies.

    There are onlt a few such services. Electricity, water, sewage, air, and landline telecommunications. You cannot allow the free market anywhere near these services. If you do, service will degrade, people will suffer and your economy, and indeed society, will slowly but surely fall behind.

    Broadband penetration in the US is pitiful in comparision to other OECD countries. There are electricty blackouts in major US cities. People in metropolitian areas are being told to boil their water. This is what happens when you privatise public services. You get the dregs of the profits running them.

    Somethings are just too important to leave to the likes of Gordon Gecko.

    --
    May the Maths Be with you!
    1. Re:Nationalisation by FrostedChaos · · Score: 2, Informative

      You forgot "food".

      Oh, oops, that's right. Food is provided by many different providers, suppliers, packagers. Why didn't it make your list of important things? It's only with the establishment of the FDA and other redistribution and regulation agencies that corporate Agriculture has been able to consolidate and create monopolies.

      Gee, there we go again! Government intrusion creates the very problems of consolidation and monopoly that get blamed on the "free market", long after the "free" part has been regulated out of existence.


      Actually, I'm kind of happy that there's an FDA around, setting minimum food standards and prosecuting those who don't meet them. Our FDA isn't as good as the agencies they have in a lot of other countries, and a lot of dubious food gets by, but it's still better than nothing. If you don't believe this, try reading Upton Sinclair's "The Jungle," to see what kinds of things they used to do to food back under the free market. Here's a hint... it turns out that lead chromate is cheaper than leavening in biscuits... and sawdust makes a great filler for sausages. You don't want to think about these things. The best part was, nobody knew what was in the food. There was no requirement for the companies to disclose this, because there was no government regulation of any kind.

      Also, the free market naturally leads to harmful monopolies, "boom and bust" cycles, de-skilling and mechanization, and a lot of other bad things. It's just like any other incentive system-- it works well for some things but in others you need a different incentive system. This isn't a matter of philosophy-- it's a matter of economic fact. Put down that Ayn Rand and start reading the work of some serious economists.

      --
      "Any connection between your reality and mine is purely coincidental." -Slashdot
  61. Re:I say GOOD by Valdrax · · Score: 2, Informative

    It's not a "ludacrious"[sic] statement. A simple Google search gives you leads to find the Bell System Memorial site which has a page on the very subject. There you can read fliers advertising the changes to allow you to buy your phone and see the old rates of between $1.00-3.25 per phone.

    Next time, take the word of someone who is old enough to have actually been there. I'm also barely old enough to remember rented phones and the Bell System Property tag on them. My grandmother kept hers for years.

    --
    If it's for-profit but free, you're not the customer -- you're the product (e.g., the Slashdot Beta's "audience").
  62. Re:They're trying to get it done quick. by Bogtha · · Score: 2, Informative

    A Democracy is a system of government where the citizens vote directly on the laws that govern them.

    That may have been true once, but language changes over time. In common use, the word "democracy" includes democratic republics such as the USA. Don't take my word for it, of course:

    Democracy:

    Government by the people, exercised either directly or through elected representatives. [Emphasis mine.]

    PS: While we're being pedantic, apostrophes are not used for personal pronouns. "...has been from it's inception..." should be "...has been from its inception...".

    --
    Bogtha Bogtha Bogtha
  63. Verizon was GTE not AT&T by CrownFive · · Score: 2, Interesting

    At least in California, Verizon started life as GTE, which was a rival company to AT&T. GTE was not a part of AT&T. It is probably not fair to call GTE a rival to AT&T, because both companies held/still hold monopolies over their service areas. Los Angeles County is divided into two service areas, AT&T and Verizon. If you live in one territory, you cannot get service from the other. Years ago, GTE was known for its lousy service, with their customers yerning for AT&T, which they couldn't get without moving.