Hold the Line

[SOURCE: Los Angeles Times, AUTHOR: Editorial Staff]
[Commentary] California state regulators dew the wrath of consumer advocates last week when they tentatively endorsed two mergers of telecommunications giants -- SBC acquiring AT&T and Verizon snapping up MCI. California Public Utilities Commission members Susan P. Kennedy and Michael R. Peevey wrote draft decisions blessing the mergers with minimal conditions, rejecting the notion that either company should have to share with California customers any of the savings generated by the mergers. In reviewing mergers of telecommunications firms, federal regulators assess whether or not they pose a threat to the competitive landscape. State regulators should then use their oversight to promote local competition. But the most potent protection for phone customers isn't likely to come from state regulators. It will come from the competition that is slowly emerging among phone, cable and wireless companies, particularly in the field of unregulated Internet-based services. And for business customers, at least, the SBC-AT&T and Verizon-MCI deals should finally push SBC and Verizon to compete vigorously with each other, just as AT&T and MCI have done for years.
http://www.latimes.com/news/printedition/opinion/la-ed-puc26oct26,1,7168...
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