Monday, June 20, 2011

Time to break up the communications trusts?

COMMENTARY | June 17, 2011

Telecom analyst Bruce Kushnick says Verizon, AT&T, and Comcast are dragging down the nation’s economy and bilking millions of Americans. The chief firms in the communications oligopoly got $340 billion to upgrade telephone and broadband systems but have almost totally reneged. Instead, they manipulate data and buy support from experts and citizens groups. In response, regulators on the federal and state levels…well, there is just about no response.

By Bruce Kushnick
bruce@newnetworks.com

In 1992, I stood at the podium of the National Press Club and suggested ”Divestiture II”. Simply put, in 1984 AT&T, a company that once controlled almost all telecommunications in the U.S., was broken up, its monopoly over local, long distance and even telecom equipment ended. A federal judge ordered the first divestiture, separating the local phone companies, which became seven new “Baby Bells,” from the long distance part of the business, which went to AT&T.

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