Award Winning Blog

Friday, March 21, 2008

Game, Set and Match: How AT&T and Verizon Will Largely Lock Down the Third Screen

The results of the 700 MHz spectrum auction solidify the market dominance of AT&T and Verizon by locking up the best additional spectrum a competitor could access for the foreseeable future. In light of shroud of secrecy surrounding the mechanics of the auction—no doubt to maximize the one time windfall for the national treasury—we will never know what sort of premium these two carriers paid to force out even such a deep pocketed player as Google.

AT&T and Verizon now have plenty of warehoused bandwidth to add to their considerable market share. The top four cellular telephone carriers in the United States have a combined market share of 88.1 percent . See Leslie Cauley, AT&T eager to wield its iWeapon, USA TODAY May 21, 2007)(displaying statistics compiled by Forrester Research); available at: With Sprint/Nextel a likely acquisition target, look for the next generation network of choice to become almost as tightly controlled as when benevolent Ma Bell dominated.

Once upon a time the United States demonstrated best practices in market performance and government oversight of the ICT sector. That cannot be said now. Instead we have an acutely political FCC which panders to economic doctrine and deep pocketed advocacy of stakeholders such as AT&T and Verizon. How can this nation not suffer in the global information economy when two incumbent carrier types (telco and cable television) share a 96+ percent duopoly over broadband terrestrial networks while one of the two incumbents (telco) dominate the wireless alternative. Susan Crawford notes that AT&T and Verizon have every incentive not to make wireless a robust competitor of wireline broadband; see

Verizon can tell us how close to a open network they will operate, but absent a third party certification process—which is what a wireless Carterfone policy would require—carriers can invoke network and “systemic” integrity to preserve walled gardens and a mutual non aggression pact with their wireline brethren.

Former FCC Chairman Reed Hundt says it succinctly:
“[The U.S.] is the last market in the world that people choose to bring a new wireless product to. Not second or third--the absolute last. Right now the policy of the FCC has been to encourage AT&T and Verizon to become the twin Bells that dominate the wireless business. They’re allowed to buy all the spectrum they can find. The antitrust laws are waived and ignored every time they appear to be a problem. The FCC is the only spectrum auction entity in the world that does not carve out spectrum for new entrants. They do it in Mexico, Canada, the U.K., China and Japan. Only here does the new entrant not get much of a chance. This is the only country in the world where the rule is the big guys can buy all of it. When you consolidate service providers, just like in the old days, when there was not two Bells like today but one, everybody knows what happens. It’s very hard for innovators to get into the market, in terms of content or software or hardware.” Reed Hundt, Interview with Ed Gubbins, Telephony Online, Feb 28, 2008; available at:


berto said...

Nice blog. Thats all.

Anonymous said...

Telecommunication technology have no borders!!!
AT&T and Verizon produces new technologies wireless communication devices. AT&T Coupon Codes provides new and cheap rate products.

I like these products and lookout for this type of information in future.

Anonymous said... acai berry clear acai berry use acai berry perfect food dr oz and acai berry acai berry stomach secret sandpoint id dr oz's acai berry supplement acai berry wiki natural acai berry acai berry and colon cleanse reviews acai berry edge

Anonymous said...

Today acai berry
codeine dosage high
Acai berry scam complaints
codeine drug test
Acai berry juice and weight control
aspirin with codeine canada
Acai berry safety
promethazine codeine pics
Free trial acai berry
codeine abuse
Acai berry fruit blast
main side effects of codeine
Does acai berry really work
codeine side effects
Nutritional value of acai berry
would codeine show morphine
Acai berry effectiveness
codeine and alcohol
Who sells acai berry supplement
tyonal codeine

Anonymous said...

Where to buy acai berry capsules
buy codeine without a prescription
Brazilian acai berry
codeine photos
Acai berry rachel ray
canada aspirin codeine
Rachel ray acai berry
loratab versus tyleol 3 with codeine
Acai berry juice and weight control
isolate codeine from cough syrup
Acai berry maxx sold in stores
tylenol with codeine online
Acai berry use
history of codeine
Zolz acai berry drink reviews
codeine dosage
Acai berry data
codeine cough syrup for children
Acai berry free trial
phenergan w codeine

Anonymous said...

Understandably your article helped me very much in my college assignment. Hats incorrect to you enter, intention look ahead for the duration of more interdependent articles without delay as its united of my pet question to read.