Telecom mergers get friendly reception on Capitol Hill
March 2, 2005 12:00 am
WASHINGTON – With the boom of recent telecommunications mergers still creating waves in the marketplace, lawmakers told telecom executives Wednesday they generally approve of the deals – but on the condition that the outcome remains consumer-friendly.
The House Committee on Energy and Commerce hosted a panel of chief executive officers from merging companies Verizon and MCI, AT&T and SBC Communications, and Sprint and Nextel.
Rep. Fred Upton, R-Mich., said these mergers will help the country move up from its current international position of No. 11 in the availability and use of broadband Internet technology.
“These mergers are logical, but integral,” he said. “I consider these mergers a tuneup … to compete globally.”
The corporate executives agreed the mergers would open doors for technology improvements. All spoke of benefits, such as additional towers and fiber optics, their combined companies would bring to customers.
Committee members pointed to possible downsides, such as less competition leading to higher costs.
“We have the emergence of a duopoly,” said Rep. Heather Wilson, R-N.M. “I do have doubts that this will benefit the American economy.”
She was referring to the Verizon-MCI and AT&T-SBC mergers.
Rep. Anna Eshoo, D-Calif., agreed.
“We are left with two large competitors that dominate,” she said. “I just ask that they treat new entrants and competitors fairly.”
Because of the plethora of media employed in most households, from cable modems to traditional telephone lines to wireless service, Edward Whitacre Jr., of SBC, said it would be nearly impossible for consumers to have fewer options.
“It is safe to say there are fewer companies, but there is more competition,” he said.
But none of the executives was willing to promise that prices would remain at current levels.
The executives and the committee members all said they recognize the need to update the Telecommunications Act of 1996, which includes little or nothing on wireless service or the Internet.
“Consumers will benefit from a realistic assessment of what telecommunications means in the 21st century,” said Rep. John Dingell, D-Mich.
Rep. Eliot Engel, D-N.Y., said the bottom line is that telecommunications is evolving and Congress must keep up.
“I don't fear change, but we have to think what is best for the consumer,” he said. “We think that when the genie is out of the bottle, we need to try and push it back in and yearn for the good old days.”
WASHINGTON – With the boom of recent telecommunications mergers still creating waves in the marketplace, lawmakers told telecom executives Wednesday they generally approve of the deals – but on the condition that the outcome remains consumer-friendly.The House Committee on Energy and Commerce hosted a panel of chief executive officers from merging companies Verizon and MCI, AT&T and SBC Communications, and Sprint and Nextel.
Rep. Fred Upton, R-Mich., said these mergers will help the country move up from its current international position of No. 11 in the availability and use of broadband Internet technology.
“These mergers are logical, but integral,” he said. “I consider these mergers a tuneup … to compete globally.”
The corporate executives agreed the mergers would open doors for technology improvements. All spoke of benefits, such as additional towers and fiber optics, their combined companies would bring to customers.
Committee members pointed to possible downsides, such as less competition leading to higher costs.
“We have the emergence of a duopoly,” said Rep. Heather Wilson, R-N.M. “I do have doubts that this will benefit the American economy.”
She was referring to the Verizon-MCI and AT&T-SBC mergers.
Rep. Anna Eshoo, D-Calif., agreed.
“We are left with two large competitors that dominate,” she said. “I just ask that they treat new entrants and competitors fairly.”
Because of the plethora of media employed in most households, from cable modems to traditional telephone lines to wireless service, Edward Whitacre Jr., of SBC, said it would be nearly impossible for consumers to have fewer options.
“It is safe to say there are fewer companies, but there is more competition,” he said.
But none of the executives was willing to promise that prices would remain at current levels.
The executives and the committee members all said they recognize the need to update the Telecommunications Act of 1996, which includes little or nothing on wireless service or the Internet.
“Consumers will benefit from a realistic assessment of what telecommunications means in the 21st century,” said Rep. John Dingell, D-Mich.
Rep. Eliot Engel, D-N.Y., said the bottom line is that telecommunications is evolving and Congress must keep up.
“I don't fear change, but we have to think what is best for the consumer,” he said. “We think that when the genie is out of the bottle, we need to try and push it back in and yearn for the good old days.”
