[and I will get to MSFT eventually, really... I promise.]
AT&T wants Media One for both long distance by cable lines along with internet access to develop its "web". It depends upon what is more important, long distance or internet.
What it wants more than long distance is all distance. It wants to be able to do all calls, whether they're across the street or across the country, and whether they're by wire or wireless. And they want to carry the "calls" whether they're voice, data, or video and especially if they're a combination of all those things. All of that is what puts them in a unique position to get great value from MediaOne. But despite all the changes Armstrong is making, the company still seems imbued with its tradition as a common carrier.
I just can't see AT&T getting too involved with content at any point along the way. Even @home's CEO now justifies the Excite purchase less as a way to get content and "eyeballs" than as something that gives them more network tools and a greater pool of possible customers.
AT&T is a utility with all the business sense to handle that kind of business very well. Microsoft is a very different beast.
If Microsoft is merely interested in having its content become an important part of a broadband internet, then all they have to do is follow the same course they're on right now. Provide the content and the users will follow, no matter what pipeline they might use to get there. The internet is open. It will be very difficult for anyone to close it off (despite AOL's success at moving their 1980's model of a closed proprietary system into the internet age). Those who provide the most desirable content and the best e-commerce experience will get customers.
Microsoft certainly wants more than that. A big part of what they seem to want is to guarantee that the devices hooked into these various pipelines are running Microsoft software. Beyond that, they want to put Microsoft tools into at least part of the backbone of those networks. I see their ownership stakes in cable, DSL, and fiber companies is an important strategic investment. It helps them learn what those companies want and how they think. That will help them supply the tools that they need.
Actually buying a cable company would be a drastic mistake for Microsoft (and one I cannot imagine they'd make). Running a utility business is so far beyond the skill-set of those in Redmond that the results would probably be disastrous. Even if they were successful, however, they'd lose too much in their prime mission to be a primary provider of software tools for this new industry. |
