The document discusses how merger conditions have benefited consumers by promoting innovation. It argues that conditions that maintained reasonable rates for services like DSL, T1 circuits, and broadband access helped enable technologies like Wi-Fi networks in coffee shops, mobile email, online music stores, and VOIP calling to develop and reach more consumers. Through surveys, it shows consumer adoption of these technologies has increased over the last 5-10 years, which it attributes to merger conditions that facilitated their spread.

1. The Benefits of Merger Conditions Jason Wakefield March 17, 2008

2. The ultimate test ... (To borrow a phrase from real estate) It’s all about the consumer … the consumer … the consumer!!!

3. What did consumers get? Did consumers enjoy innovative products? If so, did the merger conditions help get them those products?

4. Wi-Fi and coffee, anyone? Survey #1 : How many people have used Wi-Fi services over the last 5 years?

5. Getting to the Wi-Fi node Your favorite coffee shop usually needs a wired connection to set up its Wi-Fi service (Often bought from competitive DSL and T1 vendors …) DSL, T1, etc. Wi-Fi router Wi-Fi signal

6. How did merger conditions help? Maintaining reasonable DSL and T1 rates: Wholesale (i.e., UNE) DSL and T1 loop rate freezes Retail (i.e., special access) T1 rate freezes AT&T-SBC, AT&T-BLS, and VZ-MCI mergers Our local coffee shop can afford to set up its Wi-Fi connection!!

7. How did we live before mobile e-mail? Survey #2 : How many people have checked e-mail on their mobile phone or device in the last 5 years?

8. Connecting the cell towers Your mobile carrier generally uses wired connections to connect its cell towers to the phone network Phone network Cell tower T1 circuit(s)

9. How did merger conditions help? Maintaining reasonable T1 rates: Retail T1 rate freezes AT&T-SBC, AT&T-BLS, and VZ-MCI mergers Mobile carriers can afford to connect more cell towers, which means e-mail anytime, anywhere (I think that is a good thing …)

10. Why are my ears buzzing? Survey #3 : How many people have a digital music player? (How many are playing it right now … ?)

11. I need my music! How do we usually buy music for those digital players? Answer: online music stores Consumers need a good Internet connection to make this happen

12. How did merger conditions help? Maintaining reasonable broadband rates and performance: Wholesale DSL loop rate freezes, among others AT&T-SBC, AT&T-BLS, and VZ-MCI mergers Net neutrality conditions AT&T-BLS merger Consumers get reasonable rates and competitive choices …

13. The VOIP revolution Survey #4 : How many people have used VOIP? (Yes, I realize I am preaching to the choir …)

14. VOIP needs broadband Consumers need a good broadband connection for robust VOIP

15. How did merger conditions help? Again, maintaining reasonable broadband rates and performance: Wholesale DSL loop rate freezes, among others AT&T-SBC, AT&T-BLS, and VZ-MCI mergers Net neutrality conditions AT&T-BLS merger

16. I need your final answer Are merger conditions worth it? Wi-Fi, mobile e-mail, digital music, and VOIP are pretty cool developments over the last 5-10 years And, merger conditions helped their spread (These are just a few examples) So … YES!!!!