So, first we have the re-emergence of Ma Bell in the form of combined regional Bell Operating Companies and alternative access providers (SBC eats PacBell / Ameritech, Bell Atlantic takes NYNEX then GTE, Qwest consumes USWest, MCI merges with Worldcom, etc.). Not to be outdone, the same thing is happening in the cable world. Last week, AT&T concluded the takeover of the cable television world by adding MediaOne to the list of acquisitions that began with the former TCI. On the horizon, AOL and Time Warner set to become even bigger giants. The question remains, is bigger better – for either the companies involved or especially for consumers?
One thing to remember, this isn’t your Grandfather’s cable company anymore. With network rebuilds in full swing, and the hybrid fiber coaxial networks being built capable of carrying voice, video and data – it takes some real corporate horsepower to make this product work. The real issue is the ability to provide nationally the products, services and in this case bandwidth that the consumer demands. Mom and Pop cable companies are a thing of the past, and rightfully so. In order to build the infrastructure to eliminate the monopolies of the past, the consumer needs the scale that cable consolidation brings. Given this background, what are your thoughts about the following:
· The DBS factor. Don’t believe the hype, cable companies already have powerful and compelling competition – in the form of 18 inch satellite dishes now being given away for subscriptions. Do you think DBS has impacted the quality, quantity and pricing of products delivered by cable operators?
· Do you really want just one wire? Is the benefit of a one provider, one bill overshadowed by the exposure that one connection – and therefore a single point of failure – brings?
· Is overbuilding the answer? Do you think there is real benefit to the consumer in having multiple cable operators serving a geographic area, or will the capital cost eventually result in higher prices?
· With the consolidation in the cable industry, have you seen or do you expect to see pricing coming down? It worked in driving dish costs down…
· Can video be provided by the RBOC’s? Are the phone companies the ones poised to begin to deliver video as well as voice and data to the masses?
· Economies and improvements of scale. AT&T sure is known for quality. Will their entry into cable change the momentum and redefine not only choices but quality of service?
· How will it affect the way you live, learn, and enjoy? Will the promises of 500 channels, video on demand, high speed data, IP telephony be fulfilled due to this consolidation, or will the big guys hold back?