LA Times tech writer David Lazarus is incensed about Verizon's deal with the cable companies. When Verizon assures us that the deal won't affect the competitiveness of the market, Lazarus retorted:
"Sure. Because any time a market is dominated by only a handful of companies, and they all climb into bed together, that can only mean consumers will benefit. How could it be otherwise?"
Lazarus spoke with telecom industry analyst Jeff Kagan, an admirer of Verizon who is writing a book, The Future of Verizon and Verizon Wireless. However, Kagan confessed to the Times that he's distressed about the deal:
"The question is whether this is good or bad. All I see is bad... Competition is what keeps the market healthy. But these companies aren't competing anymore. Now they're partners."
Lazarus attributed this deal in part to the growth of Internet-based TV. But also because Verizon has simply given up on growing FiOS. The result is they immediately struck a deal with their rivals, and now consumers, and workers, will pay the price.
It's also bad business of for Verizon, according to Jeff Kagan. "All of a sudden they're selling some other cable service instead of Verizon's?," he asked. "That makes no sense in terms of a competitive marketplace."
Why is Verizon in bed with Time Warner and Comcast? (LATimes, Jul. 26, 2012)
The Future of Verizon and Verizon Wireless (Jeff Kagan book)