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Regulators Not Paying Attention

By Peter Radizeski, RAD-INFO

We see that the Pennsylvania courts rule that the merger of Verizon and MCI should not have been approved. Once again regulators have failed to protect the ratepayers. In the case of Verizon and Pennsylvania, Verizon is being sued by TeleTruth for collecting $2 billion of rate increases that were granted under a promise dating back to 1999 for FTTH at 45mb.

The FCC and many state regulators just don’t get it. Short term gains do not matter. Long term mergers mean unemployment, closed buildings, tax base shrinkage and less competition. Long term less competition means no choice, no innovation and higher rates.

The federal court is reviewing the two mergers last year (Verizon-MCI and SBC-AT&T).

What bugs me is that the FCC says no to a merger between DirecTV and DISH, but would allow the AT&T-BellSouth merger. (Some of that could be due to the satellite licensing like we are going to see in the XM-Sirius merger proceedings, but it would create a stronger competitor to cable, which is what the FCC claims to want).

Meanwhile, the data at the FCC is being attacked by numerous groups including TeleTruth. You have to wonder if maybe the FCC is obsolete. Other than watching Janet’s nipple, what have they done for the consumer lately?

Peter Radizeski is president of

RAD-INFO

. He can be reached at

peter@rad-info.net

.


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