Roger,
I agree with you that RBOCs are making lots of money right now. This makes them a target. The Long Distance companies as well as cable companies want find the way to penetrate the local phone monopolies. Cable is one way, cellular is another. One way or another the competitors will make them miserable.
Right now competitive LECs are stealing their most lucrative business customers, later on when the cellular prices will drop further the Long distance companies will steal the consumer customers. An example of it is ATT's cellular package allowing 1000 minutes a month for $100, no matter local, roaming or long distance. Many customers accepting this package are giving up on a second phone line in their homes. So RBOCs have quite a bit to worry about in the are of plain old telephone service, which keeps them away from data communication, where they know they will not see profits for quite a while.
In regard to cable companies being hardly afloat, I believe you are wrong. I got into TCI at $11 a bit more then a year ago and now ATT is ready to pay for it more then $40. If you look at other cable companies (CVC, COX, CMCA, Time Warner) their stock prices went up substantially as well. |
