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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."

11 of 113 comments (clear)

  1. Ok -the sky is falling. So WHAT? by Anonymous Coward · · Score: 3, Insightful

    Given that the government has been bought and paid for by large corporate donors and there is no other game in town, and given that boycotting is impractical (and would make no difference) --you expect us to do WHAT exactly?

  2. Meh... by negRo_slim · · Score: 4, Insightful

    Jesus was a communist, Jesus was a pacifist, Jesus was a communist, Jesus didn't like the rich - Reagan Youth

    Back to the topic at hand, I firmly believe these industries need to be nationalized. Or at least something along the line of utility companies. The fact of the matter is they exist to serve the citizens (or at least should due to public easements and what have you), but their commitment is to making that dollar... I don't see how that is ever going to change. But I do see how I never have to worry about gas or electric company trying to pull some underhanded move or using my payments to fund lobbyists to further their agenda. Nah when the power company wants to raise rates it's done in a public forum and it has to be okay'd by whatever governmental committee is in charge of that. Which obviously isn't a perfect system but it works and you don't see massive consumer unrest towards entities with such oversight.

    --
    On the Oregon Cost born and raised, On the beach is where I spent most of my days
    1. Re:Meh... by negRo_slim · · Score: 3, Interesting

      Obviously, you don't pay for electricity in Houston, Texas.

      No sir I live in the Treasure Valley here in south western Idaho. Where we primarily rely on hydro (with some coal), which depending on what side of the salmon debate your on has been pretty good to us. Some of the lowest per capita carbon emissions of the top 100 metro areas in the states and fairly cheap power to boot. And every year when they request a rate adjustment is splashed all over the front pages and up for discussion. Exactly the kind of thing needed for services such as communications and internet. Seeing as how our whole economy is getting wrapped up and around such services it isn't prudent to let private corporations have such leverage...

      --
      On the Oregon Cost born and raised, On the beach is where I spent most of my days
    2. Re:Meh... by Attila+Dimedici · · Score: 3, Insightful

      their agenda. Nah when the power company wants to raise rates it's done in a public forum and it has to be okay'd by whatever governmental committee is in charge of that. Which obviously isn't a perfect system but it works and you don't see massive consumer unrest towards entities with such oversight.

      The electric company never uses your paymenys to fund lobbyists? What are you smoking? The electric companies are the telcos' and cable companies' wet dream. What do you think Enron was? That's right it was primarily an electricity and gas company.

      --
      The truth is that all men having power ought to be mistrusted. James Madison
    3. Re:Meh... by strabes · · Score: 3, Interesting

      There's a problem with these companies trying to fund lobbyists to politically further their agenda, and you want to get the government more involved? The root of the problem is government involvement in the first place. If the federal government wouldn't grant favors to certain industries (cough, farms, cough corn-based ethanol, cough), there would be a lower incentive to spend money on lobbying instead of on serving the customer. A great example that proves my point is the current situation in Peru. The government taxes everything so heavily and then redistributes so much unearned income that a huge percentage of companies' budgets are spent competing for that unearned income from the government instead of developing new products for consumers. The heavy taxes keep consumers from building wealth & savings, which means there is less money available for companies to borrow, so interest rates go up. It is therefore more difficult for companies to borrow to fund their investments in new capital, which means in the end the consumer suffers.

      Increased regulation and nationalization will (like always) only make problems worse, not better. For more examples of failed nationalized industries and government economic plans leading to mass death and starvation, see the Soviet Union from 1928-1958 (Stalin's reign). For examples of what happens as a result of government control of capitalist economies, see the "Great Depression." No, the GD was not caused by the failure of the free market but by the failure of government. (Surprise! - that's never happened before...) If you don't agree, take an introductory macroeconomics/finance class at your local university that isn't taught by a Marxist, or just read Free to Choose by Milton Friedman.

      --
      Its = possessive. It's = "it is"
    4. Re:Meh... by Anonymous Coward · · Score: 3, Insightful

      Naaa free market only works in fairy tales.

      Im no fan of the government by any means, but you need to regulate markets where competition isn't high enough to do it for you.

      If theres 500 alternatives for internet service it wouldn't need to be regulation, we'd get good service and pricing from the companies trying to cut each others throats to make sure we sign up with them and not somebody else.

      But theres basically two options now, and those two options discovered the can both make WAY more money by cooperating with each other and screwing the customer over.

      Lack of control over a market gave us the RIAA, Microsoft, the telcos we have now. The days of 'the customer is always right' are long gone. Now we have corporations that have more money than most national governments, when something gets that big we need something else that big to to keep it in check.

      The only realistic solution at this point is to nationalize the infrastructure and then open it up to lease from ISP's. Then there will be no barrier to entry in the market and we'll see new local ISP's pop up anywhere they think they can steal customers from sombody else by offering a better service.

      Added bonus; its alot harder to spy on the net where theres a thousand little ISP's rather than just asking AT&T

    5. Re:Meh... by simmee · · Score: 4, Informative

      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.

  3. Duh! by zappepcs · · Score: 5, Insightful

    " [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."

    People have been saying this all along. There is no move by either company that is aimed at achieving anything other than coin for the shareholder. Their level of collusion with the **AA et al is debated, but seems inevitable. We are seeing the beginnings of the next level of content cartel being born. Each is seeking to be the biggest triple or quadruple-play content provider. The rumors that they want to charge you for access to various content on the Internet is not so far fetched as you might at first think. The large ISPs finally figured out that they now own the distribution channel for content in the foreseeable future and want to own it the way that the **AA have previously done.

    No, I'm not wearing a tin-foil hat, this is a logical conclusion. Without control of distribution there is no big bucks to be made, no expensive houses, cars, coke parties. Yes, $45 for your standard package, with tiered charges for extra 'Internet channels' like YouTube or Google or MP3World etc.

    What they are fighting about now is how to legally divide up the Internet content and not be taken to court. Comcast just lost one of the test battles.

    If remuneration for good services rendered were their goal, there would be no court cases. There would be no throttling of traffic. There would be no hints of collusion with the **AA. There would be no one questioning what ISPs should monitor and what they should not.

    In an ideal world, a massive boycott of commercial content would put everything in perspective for them. Unfortunately that won't happen. We are all the poorer for it.

    What can be done? support independent content makers now. Encourage more bands to use the pay what you like model. Eventually the message that if people won't even pirate your content, you are not worth supporting will become an industry insiders golden rule.

    It's time that such a message was sent to those spending money in Washington. Sad that it will never get there.

  4. I'd say informal price collusion also. by RyanFenton · · Score: 4, Informative

    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

  5. Big Cable is Wathing You by overshoot · · Score: 5, Interesting
    Ah, but think of the potential! All of those STBs out there, just waiting to be tuned to ... interesting programming.

    The cable company doesn't need to know that the screen is blanked, the audio is off, and you've left for the weekend -- meantime, your STB is religiously searching out reruns of Speed Racer or maybe the original Star Trek. If one person, just one person does it they may think he's really sick and they'll ignore it. And if two people, two people do it, in harmony, they may think they're both faggots and they'll ignore both of them. And three people do it, they may think it's an organization. And can you, can you imagine fifty people a day,I said fifty people a day? And friends they may thinks it's a movement.

    Well, Arlo, what if millions -- yes, millions -- of people sold their non-watching cable time to run up the viewership for worthy programs like My Little Pony? Easy enough to coordinate over the internet, after all. Either the producers go into panic mode changing their programming or else they give up on spying on their "customers." Either way, it's all good.

    --
    Lacking <sarcasm> tags, /. substitutes moderation as "Troll."
  6. Re:GWB Style Competition. by willyhill · · Score: 4, Informative

    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.