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Cablecos, Telcos Working To Strengthen the Duopoly
The LA Times is running a piece on cooperation among cable companies and telcos. No, not cablecos cooperating with telcos; rather, both industries working on industry-wide initiatives aimed at getting a leg up on the other. AT&T, Verizon, and Qwest have been working on a site, Moveroo.com, aimed at easing the pain of people moving within the US — by making it easier for them to hook up with the incumbent telco at their destination, for instance. Odd that there is no mention of which cable services might be available where they are heading. The cablecos are cooperating on a more ambitious initiative to standardize targeted advertising nationwide, using data gathered from the set-top boxes used by Time Warner, Cox, Comcast, Cablevision, Charter, and Bright House Networks. The article quotes a spokesman from a utility consumers' action group: " [The spokesman] said these moves by the telecom and cable industries may be good for the respective businesses, but they almost surely won't be good for consumers. 'All they're doing is creating obstacles to each other's industry from gaining an advantage,' he said. 'That's not competition.' Well, it is. But not the kind that benefits customers."
I've been pricing packages for phone/television/internet lately, and have found that the local Verizon and BrightHouse offerings all happen to offer a minimal price of $100/month plus equipment rental and misc fees moving the realistic cost to $130/month, and a demand for long-term contracts with heavy penalties for ending the contract.
I was pricing these because we had work crews installing the FIOS lines around the neighborhood, and wanted to see how I could use that fact to negotiate a better price with either the cable company or the new Verizon FIOS. But I was surprised at how strictly each company matched eachother's offerings without offering any cheaper options for those interested in the cheapest option. I was interested in FIOS speeds a little, but I discovered that they would be cutting the independently-powered copper and replacing it with an 8-hour battery on the wall of the house. But... if they do that, and then a hurricane comes, then the landline is nothing more than a glorified cellphone with an 8-hour battery... most hurricane power outages last much longer than that, and there is a need to call city lines for messages on drinking water and the like that just aren't available from radio.
In any case, I don't understand the rationale of Verizon here - they're spending all this money rolling out the fiber for FIOS, but they aren't using the opportunity to compete other than offering faster, but still traffic-shaped internet. The end result is just two cables running to neighborhoods, each privately owned and vulnerable in the same ways, but not really distinguishing themselves.
Ryan Fenton
Anyone posting or moderating on this thread should be aware that Erris, myCopyWrong, willeyhill, westbake and Odder are the same person.
twitter sockpuppets can be recognized from the shilling and the fact that 11 out of 12 post at -1 for trolling.
I had hoped that twitter wouldn't use his latest account for astroturfing, but I was obviously wrong.
Also watch out for these.
The twitter monologues. Click on my homepage and be amazed.
Ah yes, here we go, another free market evangalist. Here in Australia, we HAD government owned industries (Telecom Aust, ALL the utilities). These were all privatised in the 1990's Result: higher prices, less service, MORE failures (maintenance doesn't make money) and the continual carping from the utilites to raise prices even further, because 'we have to make a profit'. It has not been ALL bad, I admit, but it is worse than it used to be.