Wakefield Jason

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Wakefield Jason

  1. 1. The Benefits of Merger Conditions Jason Wakefield March 17, 2008
  2. 2. The ultimate test ... <ul><li>(To borrow a phrase from real estate) </li></ul><ul><li>It’s all about the consumer … </li></ul><ul><li> the consumer … </li></ul><ul><li> the consumer!!! </li></ul>
  3. 3. What did consumers get? <ul><li>Did consumers enjoy innovative products? </li></ul><ul><li>If so, did the merger conditions help get them those products? </li></ul>
  4. 4. Wi-Fi and coffee, anyone? <ul><li>Survey #1 : </li></ul><ul><li>How many people have used Wi-Fi services over the last 5 years? </li></ul>
  5. 5. Getting to the Wi-Fi node <ul><li>Your favorite coffee shop usually needs a wired connection to set up its Wi-Fi service </li></ul><ul><li> (Often bought from competitive DSL and T1 vendors …) </li></ul>DSL, T1, etc. Wi-Fi router Wi-Fi signal
  6. 6. How did merger conditions help? <ul><li>Maintaining reasonable DSL and T1 rates: </li></ul><ul><ul><li>Wholesale (i.e., UNE) DSL and T1 loop rate freezes </li></ul></ul><ul><ul><li>Retail (i.e., special access) T1 rate freezes </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-SBC, AT&T-BLS, and VZ-MCI mergers </li></ul></ul></ul></ul></ul><ul><li>Our local coffee shop can afford to set up its Wi-Fi connection!! </li></ul>
  7. 7. How did we live before mobile e-mail? <ul><li>Survey #2 : </li></ul><ul><li>How many people have checked e-mail on their mobile phone or device in the last 5 years? </li></ul>
  8. 8. Connecting the cell towers <ul><li>Your mobile carrier generally uses wired connections to connect its cell towers to the phone network </li></ul>Phone network Cell tower T1 circuit(s)
  9. 9. How did merger conditions help? <ul><li>Maintaining reasonable T1 rates: </li></ul><ul><ul><li>Retail T1 rate freezes </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-SBC, AT&T-BLS, and VZ-MCI mergers </li></ul></ul></ul></ul></ul><ul><li>Mobile carriers can afford to connect more cell towers, which means e-mail anytime, anywhere </li></ul><ul><ul><ul><li>(I think that is a good thing …) </li></ul></ul></ul>
  10. 10. Why are my ears buzzing? <ul><li>Survey #3 : </li></ul><ul><li>How many people have a digital music player? </li></ul><ul><li>(How many are playing it right now … ?) </li></ul>
  11. 11. I need my music! <ul><li>How do we usually buy music for those digital players? </li></ul><ul><li>Answer: online music stores </li></ul><ul><li>Consumers need a good Internet connection to make this happen </li></ul>
  12. 12. How did merger conditions help? <ul><li>Maintaining reasonable broadband rates and performance: </li></ul><ul><ul><li>Wholesale DSL loop rate freezes, among others </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-SBC, AT&T-BLS, and VZ-MCI mergers </li></ul></ul></ul></ul></ul><ul><ul><li>Net neutrality conditions </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-BLS merger </li></ul></ul></ul></ul></ul><ul><li>Consumers get reasonable rates and competitive choices … </li></ul>
  13. 13. The VOIP revolution <ul><li>Survey #4 : </li></ul><ul><li>How many people have used VOIP? </li></ul><ul><li> (Yes, I realize I am preaching to the choir …) </li></ul>
  14. 14. VOIP needs broadband <ul><li>Consumers need a good broadband connection for robust VOIP </li></ul>
  15. 15. How did merger conditions help? <ul><li>Again, maintaining reasonable broadband rates and performance: </li></ul><ul><ul><li>Wholesale DSL loop rate freezes, among others </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-SBC, AT&T-BLS, and VZ-MCI mergers </li></ul></ul></ul></ul></ul><ul><ul><li>Net neutrality conditions </li></ul></ul><ul><ul><ul><ul><ul><li>AT&T-BLS merger </li></ul></ul></ul></ul></ul>
  16. 16. I need your final answer <ul><li>Are merger conditions worth it? </li></ul><ul><li>Wi-Fi, mobile e-mail, digital music, and VOIP are pretty cool developments over the last 5-10 years </li></ul><ul><li>And, merger conditions helped their spread </li></ul><ul><li>(These are just a few examples) </li></ul><ul><li>So … YES!!!! </li></ul>

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