Phone Users May Get None of Merger Savings

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: October 20, 2005 6:36:06 PM EDT
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] Phone Users May Get None of Merger Savings
Reply-To: dewayne () warpspeed com


Phone Users May Get None of Merger Savings
By James S. Granelli, Times Staff Writer

The Los Angeles Times reports that California regulators Wednesday  
tentatively blessed two giant telephone industry mergers, but  
customers won't see much of the billions of dollars the companies  
expect to save. SBC Communications Inc.'s $16-billion acquisition of  
AT&T Corp. and Verizon Communications Inc.'s $8.5-billion purchase of  
MCI Inc. could reduce their expenses in the state by a combined total  
of up to $2.7 billion, consumer advocates say. State law requires  
phone companies to split any such savings with customers, as SBC did  
when it bought Pacific Bell parent company Pacific Telesis Inc. in  
1997. But draft decisions by Public Utilities Commission members  
Susan P. Kennedy and Michael R. Peevey would exempt the companies  
from that requirement, prompting outrage from consumer advocates.

<http://www.latimes.com/business/printedition/la-fi- 
sbc20oct20,1,3528875.story?coll=la-headlines-pe-business>

Weblog at: <http://weblog.warpspeed.com>



-------------------------------------
You are subscribed as lists-ip () insecure org
To manage your subscription, go to
 http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/