As Carriers Consolidate, Customers Need Consulation

Kuehn, Richard A.
April 2005
Business Communications Review;Apr2005, Vol. 35 Issue 4, p66
Trade Publication
This article presents information regarding carriers consolidation in the telecommunication industry. The carrier world is being turned upside down, and anyone who expects to be unaffected is in for a rude awakening. Carrier consolidation isn't occurring because the acquirers want to bring prices down. It's going to be much tougher to negotiate favorable rates and terms. Moreover, the carriers fondness for "bundles" will increase. The more services bundled from a supplier, the less likely one is to change vendors. And the carriers know it. But those bundles may have holes. If not, local service may not be "bundle-able" into a nationwide contract. And since there's been at least a modicum of competition for intrastate long-distance. RFPs will have to be structured to reflect both specific RBOC territories and specific service offerings. That will make it more difficult to secure optimal pricing nationwide. Another unknown is whether the differential between dedicated and switched rates will disappear once the RBOC long-distance company starts having to pay itself for local access and egress.


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