Mexico's 1984 Moment Coming?

The year 1984 was significant for the U.S. communications business because it was the year the AT&T monopoly was broken up. 

It now appears at least possible something similar could happen in Mexico, as the legislature considers a bill that would create a new agency with the authority to literally break up the dominant telecom company, America Movil. 

The thinking is that doing so will lead to more competition. That should be the case. Sometimes, though, breaking up a monopoly has different outcomes than were expected. You might argue that the AT&T breakup lead to success for MCI and Sprint.

The divestiture also lead to the creation of the seven regional Bell operating companies, all of which eventually were recombined to form Verizon and AT&T (SBC having gobbled up several of its sisters before buying the formerly independent AT&T). 

After nearly three decades, there are two dominant telcos, both the progeny of the original AT&T. 

Post a Comment

Popular posts from this blog

Voice Usage and Texting Trends Headed in Opposite Directions

What to Do About Industry Challenges? "Take the Package," One Exec Quips

Verizon has a Brand Promise Problem