By now we all know that AT&T and Verizon illegally spied on American citizens while
Qwest refused to break the law. We have seen that Qwest executives were punished by the political wing of the White House---the Department of Justice---with prosecutions for a variety of corporate crimes for their refusal to go along with Bush’s illegal domestic spying program. Like former boss Nacchio, who was tried for insider trading, when in fact the feds offered Qwest a lucrative contract---then took back their offer when Qwest would not conduct illegal spying on American citizens
pre 9/11 , causing the company unexpected financial trouble.
http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_5719566,00.htmlWe all know that the Bush administration is trying to protect their partners in crime, AT&T and Verizon from the lawsuits that are working their way through the federal court system and that some Democratic members of Congress seem to have spines made of jelly. Or maybe they need the campaign cash.
http://journals.democraticunderground.com/McCamy%20Taylor/74But did you know that AT&T and Verizon have been rewarded by the Bush FCC---especially Verizon? Under the tenure of current FCC Chair Martin, each of these telecommunications giants has been allowed to merge with another giant, forming
super colossal phone company giants . And when Qwest got in the way of Verizon's ambitions, the Bush administration swatted it down like a fly.
http://www.consumeraffairs.com/news04/2006/09/fcc_att_bellsouth.html Federal Communications Commission (FCC) chair Kevin Martin is planning to endorse the merger of two of Ma Bell's biggest children without any conditions, insiders report.
The AT&T-BellSouth merger will create the world's single largest telecommunications company and cost $67 billion to complete.
Martin has recommended that the merger be placed on the FCC's agenda for its next formal meeting, scheduled for Oct. 14th. Martin's request is unusual in that the Justice Department has yet to complete its review of the proposed merger for potential harm to consumers and competition.
<snip>
The merger would give AT&T full control of Cingular Wireless, the nation's largest wireless service provider, and extend AT&T chair Ed Whitacre's reach into the South, BellSouth's largest market.
Way to go AT&T! A mega merger fast tracked, all for a little illegal spying. Now, of course, one could argue that the Republican Party is the party of unlimited mergers and monopolies. But look at the lengths that the Bush administration went to make sure that its pal Verizon acquired MCI and not Qwest.
The MCI acquisition was complicated by the fact that Qwest was willing to pay more per share for MCI's stock. No problem. Just have the SEC start telling the world that it was going to begin having Qwest executives arrested for crimes like insider trading, as in this article from March, 2005 called "SEC Accuse Qwest Fat Cats of Cooking the Books".
http://www.theregister.co.uk/2005/03/16/sec_chases_qwest_execs/Or get the Washington Post to tell MCI shareholders what a really bad idea it would be to hitch their wagon to Qwest right now (nudge, nudge, wink, wink).
http://www.washingtonpost.com/wp-dyn/articles/A5750-2005Mar27.html As a long-time advocate for investors, it pains me to say it, but MCI Inc.'s board of directors ought to tell shareholders who oppose merging with Verizon Communications Inc. to take a hike.
It's true that Qwest Communications International Inc. is offering stockholders more money for MCI than Verizon -- $8.45 billion vs. $6.75 billion -- but merging with Qwest would be one of the dumbest deals in the history of Washington investing.
Of course it would be a dumb idea. The Department of (In)Justice was about to start a series of revenge prosecutions of Qwest executives. If MCI knew what was good for it, it would sign up with Verizon, the patriotic phone company.
Qwest did not give up without a fight:
http://www.cfo.com/article.cfm/3932847 Added Qwest: "We pursued MCI with tenacity and discipline and feel strongly that our bid would have brought far more value to MCI shareholders. Unfortunately, the latest in a string of decisions reconfirms what we have believed all along: that MCI never intended to negotiate in good faith with Qwest nor maximize shareowner value."
MCI, however, stressed in its press release that the offering price was not the only factor when it decided to accept Verizon's latest bid. It pointed out that a large number of MCI's most important business customers had indicated that they prefer a transaction between MCI and Verizon rather than a transaction between MCI and Qwest.
"Additionally, as their contracts come up for renewal, a number of customers have also requested rights to terminate their arrangements with MCI in the event of a Qwest transaction," MCI added in its statement. "These customer concerns, in the board's view, pose risks in connection with a Qwest transaction that could negatively impact the value of the equity stake in a combined Qwest/MCI to be received by MCI's shareholders under Qwest's offer."
In a related development, The Wall Street Journal, citing people familiar with the situation, reported that the Securities and Exchange Commission is looking into possible suspicious trading activity in Qwest's stock at different points during its battle to acquire MCI.
Seems to me that the
real reason for the revenge prosecutions of the Qwest executives was two-fold. One was to keep them from talking about the illegal spying that they did not participate in (and that their rivals did participate in). But the more important reason was to eliminate them as competition so that Verizon would be able to acquire MCI...
...as payment for its services rendered? Who can say? Verizon and AT&T both got sweet deals. When the Republican controlled Congress held hearings, Sen. Kohl (D) objected:
"It is our first responsibility to ensure that these emerging new technologies have a real change to succeed. The possible benefits of new competition will drive growth throughout the economy for decades to come. We must insist that the promise of tomorrow's technology is not stifled in its infancy by today's consolidation. And we must seek to avoid the creation of a world where consumers are left with only two choices for a bundle of telecom services -- the ``Baby Bell´´ phone company and the cable company."
He said that "we have two concerns with these mergers. First will this consolidation decrease the choices and increase the costs to consumers and to business customers, both large and small? Second, how can we ensure that new technologies and new services can get access to the SBC and Verizon networks? A good place to start would be to require that the Baby Bells offer consumers the choice of buying Internet access without also requiring them to buy phone service. We expect to recommend additional specific pro-competitive merger conditions to the Justice Department and FCC in the coming weeks."
http://www.techlawjournal.com/topstories/2005/20050315.aspDid the FCC listen? With one ear.
http://phone.ioerror.us/2005/10/fcc-approves-verizon-mci-sbc-att-mergers The companies involved in the mergers also agreed to the terms, which require the combined companies to offer naked DSL; abide by network neutrality rules the FCC adopted earlier this year; promise not to block Internet traffic from accessing VoIP services and exchanging videos; and maintain special access and unbundled network element pricing. — Phone+ Magazine
The naked DSL requirement is an important one. Naked DSL is the provision of DSL service over a regular phone line, without corresponding (landline) dial tone telephone service. It means that consumers and small businesses can provision a VoIP line over DSL from whatever carrier they choose, thus saving money over a traditional landline.
But because the conditions are temporary, lasting only for 30 months, some of the commissioners are afraid that landline competition might ultimately decline. Phone Watch will be watching to see what happens. In the meantime, the time to take advantage of cheap VoIP is now.
So, there you have it. A tale of the Republican Kingdom of King Lear-Bush, and a story of three sisters, AT&T, Verizon, and Qwest, all three asked by their dad, King Lear-Bush to spy on their clients in the days before 9/11, when there was no conceivable reason for anyone to do anything of the sort. AT&T and Verizon said "Sure, Dad." Qwest said "I can't. That wouldn't be right." King Lear-Bush rewarded his bad daughters and punished his law abiding daughter and brought ruin upon the whole kingdom.
The end. Unless the Democrats in Congress buckle under and give AT&T and Verizon retroactive immunity, in which they have only begun to learn about having hell to pay.
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