This below, is, I think, a very important development/observation--that there will be (perhaps already is) the re-emergence of monopolies in the key telecom sectors as a result of (causal to) the recent financial debacles in this sector.
This analysis could/should probably be expanded to the energy sector--power generation and natural gas pipelines for example, and other areas where there appear to be natural monopolies as a result, for example, of, as below the requirements for massive investment or where the monopoly is crucial to the public good (health care, computer operating systems?). This of course, would suggest (to all but the most ideologically "challenged" among us) the need for revisiting (going back to the future) regulation--or do we leave it all to the Enron's and WorldCom's of the world with their obvious interest and capabilities in "self-regulation"! Or am I missing something? Mike Gurstein -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of [EMAIL PROTECTED] Sent: July 8, 2002 11:48 AM To: [EMAIL PROTECTED] Subject: TELECOM SECTOR MAY FIND PAST IS ITS FUTURE TELECOM SECTOR MAY FIND PAST IS ITS FUTURE Deregulation and new technology were expected to spawn a golden age of competition, energizing the economy while bringing consumers and businesses a cornucopia of exciting services and products. But now, many of those who just a few years ago bet big on this dream have reluctantly reached a new conclusion: The future of consumer choice in phone service may look an awful lot like the past. Dozens of telecommunications companies have gone bankrupt and nearly a half a trillion dollars in investments have evaporated. Instead of a world of choices, a few giants continue to rule -- Verizon Communications Inc., SBC Communications Inc. and BellSouth Corp., the local telephone monopolies carved out of the breakup of AT&T Corp. "The real nature of this business may be a monopoly business because it just requires so much capital," said William J. Rouhana Jr., former chief executive of WinStar Communications Inc., an upstart telephone and Internet company that landed in bankruptcy in April 2001. The economics of building networks, upgrading old wires for the high-speed Internet and improving mobile phone services "are just so overwhelming," Rouhana said. If investors will no longer bear the costs, then "to have more than one competitor who controls the physical network may just not be possible." [SOURCE: Washington Post, AUTHOR: Peter S. Goodman] (http://www.washingtonpost.com/wp-dyn/articles/A36589-2002Jul7.html)
