Let us understand the current state:
Cable subscribers are segregated into regions. Each region is served by a particular MSO. Each MSO can serve more than one region. Straightforward, now let us introduce a network layer between the MSO and the regions. This layer itself is partitioned into two parts, consisting of RR and ATHM's networks.
If the DOJ allowed the MediaOne merger to proceed, with AT&T retaining an ownership interest in RR, AT&T would have monopoly power over this network layer.
The DOJ decision prevents monopoly power of the network, but also makes the network layer transparent, because now each network partition is owned, principally, by the MSOs that "own" the regions the network serves. If this is true, then we can say the network layer vanishes as a separate entity from the MSOs. Therefore, there will be no competition at this level. Further, if there is no competition at this level, then there must be competition at a higher level, therefore this DOJ decision guarantees open access at the "ISP" level.
Obviously, the network level is too valuable for any one company to have monopoly power over it. The battle of the network level is over, and both ATHM and RR lost. They, particularly ATHM, created too much value. |
