Comment on Verizon, Cable Co’s Spectrum Sale | Jeff Kagan Tech Analyst

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Jeff Kagan

Tech Analyst

     

Verizon and the Cable Television Companies are defending their plans as being beneficial to the public because it would bring more mobile service and capacity to more Americans as wireless data hungry smart phones and tablet computers squeeze existing spectrum capacity.

I both agree and disagree with their position.

It is true that this deal would help Verizon and cable television customers going into the future by increasing the capacity for them to serve customers. That is good.

However, what about the rest of the industry? Do we really want just two big competitors owning this rapidly growing wireless data space?

Wireless data is growing very rapidly. In only the last few years we have changed the way we use wireless phones. We used to use them to make phone calls. A few years ago wireless data exploded and crossed the 50/50 line. In the next few years wireless data will account for 97% of network usage. Voice only 3%. That is a completely different world.

In order to be a competitor, companies have to have access to spectrum. That’s what set off AT&T’s mad dash to acquire T-Mobile, which failed.

We have to make a decision what we want this industry to look like going forward. We have to decide whether we want two enormous competitors, AT&T and Verizon. Or whether we want all the competitors in the mix, keeping service quality up, prices down and customers happy.

We have to develop a plan to take us to whichever future we want to have.

If we want multiple carriers competing then we have to make some changes.

We have to pool all the wireless spectrum together and every competitor can buy access to it all. That way all carriers would have equal access and they would win or lose based on their quality and prices and their ability to market and serve the customer.

Competition is good. Lack of competition is not good. It’s our choice.

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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
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Phone 770-579-5810 Email jeff@jeffKAGAN.com

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