Story Author: Mike Maroulis
Publish Date: Not Available
Source Publication: TechBuzz Report

Late last month it was announced that SBC Communications will purchase AT&T for $16 Billion creating the largest telcom company in the U.S.

When I originally heard this story I was hit with the irony of this situation with the thought that an AT&T spinoff is buying its parent.

Bell Telephone was created in 1877 and eight years later formed American Telephone and Telegraph (AT&T). AT&T flourished for the next century creating several inventions including UNIX, electronic telephone switches, fiber optic cabling, and 911.

On January 1st, 1984 in a settlement with the government, AT&T created seven RBOCs or Regional Bell Operating Companies. Included in this was Ameritech, the holding company that was over several Midwest bells including Indiana Bell and Illinois Bell.

On October 8th, 1999 SBC merged with Ameritech after much argument with the FCC resulting in several conditions that needed to be met, including sales of wireless infrastructure to GTE and Bell Atlantic (now Verizon after their own merger).

Now we see that SBC is going to buy AT&T, the company that became because of the original AT&T Anti-Trust suit is buying in essence its parent. Is it not then possible that the FCC will start another Anti-Trust suit against SBC? Is it possible that this merger will benefit customers? In some recent mergers such as the Bell Atlantic/GTE merger customers benefited by receiving services that were never before offered. The TCI/AT&T Broadband/Comcast merger brought many new services to customers, should we embrace this merger or be afraid? Only time can tell……

TechThought is an editorial feature of TechBuzz. The opinions and views expressed are those of the author and are not those of Indiana University or Indiana University Northwest. Submit your opinion, email techbuzz@iun.edu.