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Can A Bulked-UP AT&T Possibly Be A Good Thing For Consumers?

  • AlterNet, Tuesday, March 14, 2006 11 AM
Timothy Karr, campaign director of a national media reform organization, argues at AlterNet that the newer, larger AT&T--the one that just made an offer to buy BellSouth--cannot possibly be a good thing for American consumers. The formation of the new media elite -- Verizon, Comcast, and AT&T among them--assures but one thing: customers will pay more, not less, for telephone, TV, and Internet access in the future, what with behemoth companies controlling all three services beneath their gargantuan umbrellas. "As large telecom companies merge and jockey for position with the cable industry over the most lucrative broadband markets, the communities at the edges have been left on the wrong side of the digital divide," writes Karr. "According to the U.S. Census Bureau, nearly 60 percent of households with incomes over $150,000 annually have broadband access, compared to just 10 percent of households with incomes below $25,000." The point being that the prohibitively high cost of broadband is not likely to become more affordable when only a few companies will control access to the Web for most Americans.

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