Subject: what happened to America's internet Future? - a pointer to an essay

From: Gordon Cook <[email-masked]>
Date: Mon, 23 Jan 2006 14:26:14 -0500

that I hope you will enjoy

Here with the first two paragraphs  -

Capitalism in the United States in the 21st century has not moved  
forward with the rest of the world. We are still embedded in the post  
World War II mindset of America as the great economic power at the  
peak of the industrial age. While many of our giant corporations are  
shrinking in size, in 2005 in American telecom there were two major  
exceptions to a trend in the technology area of downsizing driven by  
increasing commoditization as companies try to become more nimble in  
order to compete in a globalized economy.

The two largest local phone companies swallowed the two largest  
American carriers. SBC merged with ATT and became the “new” ATT and  
Verizon took over MCI.  Motivated they claimed by the goal of  
economies of scale, CEOs Whittacre and Seidenberg asserted that they  
could eliminate duplicative infrastructure and save money. What they  
did not explain was the cost of adding more debt to their core  
business and the expense of merging two huge and complex  
organizations with complex billing systems. They also ignored  
increasing enterprise customer anxiety as sources of redundant  
network infrastructure vanished. Some observers speculated that the  
real reasons for the mergers were the acquisition MCI and ATTs global  
IP backbone’s free traffic interconnection with the other major  
global players. In an increasingly all IP world, these resources had  
the potential to enable more cost-effective competition in the  
efforts of what some began to call Bell East and Bell West’s efforts  
to provide television over their IP networks  efforts to compete with  
the MSO's cable modem service that will very likely fail.

you mat read the entire essay at

http://www.cookreport.com/14.11.shtml

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