more on The Return of Ma Bell -- AT&T (SBC) to buy BellSouth?]]

[Dave Farber <dave () farber net>]

-------- Original Message --------
Subject: Re: [IP] more on The Return of Ma Bell -- AT&T (SBC) to buy
BellSouth?]
Date: Sun, 05 Mar 2006 10:31:58 -0800
From: Lauren Weinstein <lauren () vortex com>
To: Richard Perlman <perl () lucent com>
CC: David Farber <dave () farber net>, Lauren Weinstein <lauren () vortex com>


Richard,

With all due respect, I think it's fair to say that Dave and I
are reasonably well versed on Bell System history, and the
details of the '84 divestiture and subsequent events.

This probably isn't the proper forum for a detailed analysis of
vertical and horizontal corporate relationships vis-a-vis the Bell
System, and I did not attempt to present that sort of detail in the
quoted message.  The intricacies of the consent decree vs. the
divesting of the Bell Operating Companies is of historical interest,
but is of less value in the "where are we now and where do we go
from here" nitty-gritty.

Rather, the fundamental points are rather simple, and while the firms
involved will attempt to obscure these facts they are true
nonetheless.  We were promised that a brave new world of competition
would be opened up with the various BOCs working to compete not only
regionally but for some services nationally as well.  We'd have a
wide range of local telephone service providers and long distance
carriers to choose from.  Vast numbers of ISPs would compete for our
business.

Instead, long distance has largely collapsed as a business,
conventional local service competition left little except
unnecessary area code splits, and the reconstituted telecom giants
are using their lobbying power to dictate (for their own benefit)
fundamental Internet topologies, skirt local video franchise rules,
and otherwise aim toward taking on all of the worst aspects of the
old Bell System, plus new powers that couldn't have been imagined
even a couple of decades ago.

That's the real story behind the headlines.

--Lauren--
Lauren Weinstein
lauren () vortex com or lauren () pfir org
Tel: +1 (818) 225-2800
http://www.pfir.org/lauren
Co-Founder, PFIR
   - People For Internet Responsibility - http://www.pfir.org
Co-Founder, IOIC
   - International Open Internet Coalition - http://www.ioic.net
Moderator, PRIVACY Forum - http://www.vortex.com
Member, ACM Committee on Computers and Public Policy
Lauren's Blog: http://lauren.vortex.com
DayThink: http://daythink.vortex.com


 - - -



> Dave, Lauren:
>
> There is a common misconception expressed in the comments (below) about the
> breakup and getting back together again of at&t.  In 1954 the DoJ filed suit
> against AT&T for maintaining a vertical monopoly. The basis of the suit was
> that as the manufacturer of the equipment it used to operate the "Bell
> System" AT&T was engaging in unfair competition.  In 1984, when the
> anti-trust suit was finally settled, it was the horizontal monopoly that was
> broken up, not the vertical monopoly.  AT&T continued to own Western
> Electric, Bell Labs and the former "Long Lines."
>
> Why did AT&T give up the unchallenged horizontal monopoly? Because they
> thought they could make a killing in the emerging mini-computer market with
> their 3B20 systems - a market they had been previously excluded from by
> regulatory dictate.
>
> Ironically, is wasn't much more than 10 years later that AT&T effectively
> did what the DoJ had tried to do in 1954, when they spun-off the former
> Western Electric as Lucent Technologies.  Even more ironic, this is exactly
> what Alvin Toffler recommended to AT&T in 1972 as detailed in his book
> "adaptive Corporation."
> (See http://books.global-investor.com/books/20897.htm )
>
> So, the real "reconciliation" of AT&T would be for the new at&t to acquire
> Lucent - and that just is not going to happen.
>
> Check out http://www.bellsystemmemorial.com/bellopercomp.html if you are
> interested in the history of the 'Bell System."
>
> Richard  
>
>
> On 3/5/06 08:22, "Dave Farber" <dave () farber net> wrote:
>
> > -------- Original Message --------
> > Subject: The Return of Ma Bell -- AT&T (SBC) to buy BellSouth?
> > Date: Sun, 05 Mar 2006 08:16:45 -0800 (PST)
> > From: Lauren Weinstein <lauren () vortex com>
> > To: dave () farber net
> > CC: lauren () vortex com
> >
> > Dave,
> >
> > ... You'll recall the robot cop who was blasted apart into globs
> > of mercuric metal, that flowed back together to recreate the
> > original whole.
> >
> > That's what's happening now -- with the smiling approval of Congress
> > and the FCC -- far along the path of resurrecting a new Ma Bell with
> > powers and influence that will vastly exceed even those of the
> > original Bell System.

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