Verizon & MCI : A Good Deal for Consumers

Verizon & MCI : A Good Deal for Consumers

Statement of Braden Cox, Technology Counsel
February 13, 2005

Contact for Interviews:     <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Richard Morrison, 202.331.2273

 

 

 

Washington, D.C., February 14, 2005—During today's announcement of its acquisition of MCI Corp, Verizon Communications Inc. urged regulators to act quickly and approve the merger.  The merger, like that of SBC and AT&T, is a pro-competitive development for a changing communications market.  In an environment where cable, telephone and wireless companies all compete against each other, the combination of these two providers is the natural progression of a communications market working for consumers.

 

The increasing ability of consumers to substitute different forms of communication—landline telephone, wireless, Voice over IP—for another means an expanding marketplace that transcends the old public utility model of the telecommunications industry. This competition from other technology platforms protects consumers from rising prices. Network integration, such as we will see in a combined Verizon/MCI and SBC/AT&T, is a requirement in order to compete effectively with other communications networks. 

 

This merger may be just the beginning of the changes we need to see in the telecom world of higher bandwidth and digital content delivery. As we revisit the 1996 telecom act, there may be even more shakeups. Regulators need to reassess the role of antitrust in the modern tech world and allow market institutions rather than yesterday’s regulatory policy to guide tomorrow's tech world.

 

Telecom Expert Available for Interviews

Braden Cox

Technology Counsel

202-331-2254

bocx@cei.org

Recently seen in: Communications Daily, National Journal’s Technology Daily, and Knight-Ridder Business News among others.