The Press Release.

The Quote –

The merger will streamline the ownership and operations of Cingular Wireless, which is jointly owned by AT&T and BellSouth. The new company will be more innovative, nimble and efficient (emphasis mine), providing benefits to customers by combining the Cingular, BellSouth and AT&T networks into a single fully integrated wireless and wireline Internet Protocol network offering a full range of advanced solutions.

As a result, the combined company will be better able to speed the convergence of new and improved services for consumers and businesses, and embrace the industry’s shift to Internet Protocol network-based technologies.

The Jamoker Analysis – I’m not buying a word of it.

Granted, I’m no expert on the telecomm business. But, I am old enough to remember the breakup of Ma Bell. And, I find it odd that 25 years later, it is mostly back together.

The reason? All that fluff talk in the Press Release about being more nimble and efficient. I thought that was what the monopoly breakup was supposed to do? Increased competition breeds innovation, right? Instead, it seems to me that this merger is more about enhancing shareholder return and hitting the quarterly revenue targets. Building a bigger bureacratic behemoth will NOT translate into increased innovation.

If they want to be nimble, they could instead look to companies like these and/or Skype.

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