This time the news was bad for the Telco's and getting worse fast. It is no surprise that the cable companies are taking customers away from the telco's in big numbers. Why would anyone want a phone line and an internet connection ?
Only if they don’t understand that they don’t need a phone line if they have an internet connection. Im not happy about the idea that customers are going from one monopoly to another. The cable companies are also protected by government regulations and use that power and protections to gouge customers.
These industries don’t charge customers based on what it costs to provide the services instead they charge customers as much as they can get away with.
When you have a market with such disparity technology can be the great equalizer. The report I herd today was on the radio - saying something like - the reports are out and the cable companies are providing phone services with their internet and tv offerings and customers are buying the service and dumping the phone company.
Well that makes sense. The cable companies can almost give away phone service because it cost them so little to provide it.
The story went on to say that ATT and Verizon had plans to start offering TV. Big deal - they just don’t get it. Customer can and will get TV from the Internet. They will pick the programming they want when they want it. They will get everything delivered over the internet.
The media guys think they can stay relevant but the reality is only good content will remain interesting for viewers. The method of delivery makes no difference what so ever. If ATT and Verizon did not have such a golden goose with the protected monopoly they would never spend the shareholders money to get into the TV business.
If they did not have such old entrenched executives in place new young management would not even entertain the idea. These are the same guys that amortize TDM switching over 20 years, and they expect to use the stuff for that long.
Look out because the changes in this industry are coming so fast they can't see it. The wireless providers are not immune. In my next blog I will talk about why closed thinking - and pure profits motivated apple and att to lock iphone users out of technologies already available to them.