cr> Phone company merger

1996-04-22

This comes from my own point of view, not speaking as moderator.

The Boston Globe, which has quite good reportage on telecom, printed
several articles today about the merger between Bell Atlantic and
Nynex.  "Raymond W. Smith...as Bell Atlantic chief has aggressively
promoted movies-on-demand and other high-tech services as the future."
The statement implies that the new company will move fast to offer
these things.  Also, "A key reason Nynex and Bell Atlantic are
combining forces is to enter the long-distance market, from which they
had been barred until this year."  The article didn't mention that the
Telecom Act still doesn't allow them to offer long-distance--not until
there's some evidence of competition in the local telephone market.

Job loss is a major part of the merger, so the CWA is fighting it.  We
should all remember the rationale given by Al Gore and others for
promoting the National Information Infrastructure: that it would lead
to the creation of jobs.  Yet, according to the Globe, "Already,
telecommunications leads all other industries in job cuts....the major
phone companies have shed 200,000 jobs since 1992."  The conventional
response is that whole new industries will arise from the new
technological possibilities and re-employ all these people--does
anybody see evidence of those jobs coming into being.  (Maybe all
those laid-off workers will have to be satisfied with lower costs for
their movies.)

Andy

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