Last Days of Telecom


Andy Kessler thinks that we are living in the last days of telecom, which he thinks has been kept alive by a legal life support system. SBC+AT&T is only a sign of the end. Like all who have lived in Silicon Valley too long he believes cool stuff is coming and that will take the markets away from telecoms – wireless, mesh networks and all that stuff.

In this day and age, there shouldn’t even be a “phone” business. Communications is 20 years into a digitalization process, and the Bells don’t like it one bit. Real competition actually works. Judge Greene divided Ma Bell geographically back in 1984, and competitive long-distance rates dropped 95% in 20 years. So why haven’t local rates? The incumbents have used every trick to avoid the competition a digital world brings: legal delays, bullying, lobbyists, fat dividends to keep stock up, and promises not to raise rates before elections. Whatever it takes. But they’re almost out of options.SBC stock and the entire telecom market has been dead money for years. Buying AT&T only props up the corpse a little longer.

Bonus Link: Telecom’s Continuing Death Spiral


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