IP: Sitting Pretty: How Baby Bells May Conquer Their World

[Dave Farber <dave () farber net>]

http://www.nytimes.com/2001/04/22/technology/22TELE.htmlhttp://www.nytimes.com/2001/04/22/technology/22TELE.html

April 22, 2001

Sitting Pretty: How Baby Bells May Conquer Their World

By SETH SCHIESEL

Here is what the United States telecommunications industry may well look 
like in 2004:

Of the Baby Bell local phone carriers, once seven in number, three remain — 
Qwest Communications, SBC Communications and Verizon Communications — and 
they are by far the most powerful and important communications companies in 
the nation. The corporations once known as long-distance carriers, like 
AT&T, are shells of their former selves.
Only 15 percent of the nation's roughly 110 million households have 
switched their local phone service to a new competitor. But the Bells, 
which now sell long-distance services in three dozen states, control half 
of the consumer long-distance market.

WorldCom, a highflier once worth more than $150 billion, now belongs to one 
of the Bells, making that company a major force in the business services 
market. Sprint was acquired by another Bell, or perhaps by a foreign 
carrier, but only after spinning off its wireless or local phone operations.

One of the Bells tried to acquire AT&T's core business services operation, 
but was thwarted by regulators. Global Crossing and Level 3 Communications, 
meanwhile, merged after a titanic clash of egos. Nextel, the big 
independent wireless carrier, was acquired, too. Only AT&T Wireless and 
VoiceStream remain as major competitors to the Bells' wireless operations.

<snip>



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