Friday, May 21, 2010

The FCC Prepares To Beat Down AT&T And Verizon, Lift Sprint – 24/7 Wall St.

The Federal Communications Commission, whether it is wrong or right, is signaling that it may try to undo what consumers and providers, operating through their own willing to pay, have voted with their wallets, arguing essentially that concentration in the wireless market is now a problem.

The problem is that AT&T and Verizon Wireless have grown for logical reasons. They have more capital to spend to grow their businesses, Sprint shot itself with poor customer service and T-Mobile USA simply has not invested in its business to the same degree the other contestants have.

FCC may try to set new rules to “protect” the smaller companies in the cellular business, but, if they need protection, it is because they have been badly run or have not spent enough money to win over customers.

It is true that AT&T and Verizon have the ability to bundle other products to create triple play and quadruple play offers. Sprint and T-Mobile USA do not have similar ability. But that hasn't stopped Dish Network and DirecTV from taking share from the leading fixed line providers in the multi-channel video markets.

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