Wed 12 Aug 2009
Are The Big Three Telecomms Price Fixing?
Posted by RichSlick under Observations, The Fed
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A funny thing happened on the way to the wireless internet, the big three telecomms (AT&T, Sprint, Verizon) have all simultaneously implemented 5GB caps on wireless 3g/4g internet services. What an amazing coincidence right? As far as I can tell, T-mobile is the lone hold out on the 5 GB cap but I wonder how long that will last.
Sprint has been running ads for their new MiFi wireless router. The commercials claim that “five” people can access the internet at once. Hmmm….with a 5gb limit I guess that means that each person can access 1 gb of data per month. Wow a whole gigabyte of data per person per month! And people are complaining about possible health care rationing?
I see eerie similarity between the 3 big telecomms and the big 3 auto companies and I foresee trouble for all but the most nimble. First, the big three became ultra fat and lazy at providing competitive pricing for excellent products and the big three telecomms have just made a turn in that direction. While GM, Ford & Chrysler could only churn a profit but selling gas guzzling SUVs, it seems the telecomms are using wireless G products as their vehicle for trying to churn a profit.
Other similarities include the telecomms being saddled with expensive union labor, government regulation and taxation, and planned obsolescence. The 3g/4g might be easily supplanted by if it ever gets traction but more likely it’ll be something totally new and unexpected.
Hey FCC! Wake up and do some investigating!