telecom@eecs.nwu.edu (TELECOM Moderator) (08/14/89)
An interesting conference is being presented October 23-24 to discuss the
controversial topic of cross-ownership in the telco and cable industries.
Both cable operators and telcos are so mired in antagonism and mutual
suspicion that they are ignoring potentially profitable joint venture
opportunities.
The telcos won't go on the record (they want to build systems and sell pay
per view services), but they seem to think they can "do" cable with both
hands tied behind their back. Cable is a 1950's technology, unfit to provide
next generation video. And, cable marketers are selling the United States
little more than empty promises, according to the telcos. Citing consumer
complaints about poor service and rate increases as well as sexually explicit
and other offensive programming -- the telcos claim that the only thing
keeping cable looking as prosperous as it does is its monopoly status. The
telcos seem to think they should be given a crack at it, to make it 'much
better' for consumers, and less expensive, too!
The cable industry, on the other hand, says television from the telephone
company is not worth taking seriously. They say no one except an outfit
with an excess of ratepayer money burning a hole in their corporate pockets
would be planning to provide video on demand for $5000 a pop! The cable
guys whine and complain saying Americans don't even want call-waiting!!
They surely won't buy television programming from Sister Bell or one of
her girlfriends. And as far as technology goes, the cable industry claims
they are second to none -- pointing to the recent developments with one-way
AM Fiber -- something the telcos said couldn't be done.
The National Cable Television Association says the whole controversy is
a dead issue. They say, "...this is just another bluff from Bell. They
haven't got what it takes to pull it off. There is nothing to worry about
since the telcos won't be able to do it..."
Oh yeah? Then how come the NCTA just assessed their members a fifteen
percent surcharge on next year's dues? If it is such a dead issue, what
are they gonna do with all that money they won't be needing in Washington
next year to fight the 'non-existent' telco threat to their territory?
An Ameritech lobbyist in Our Nation's Capitol phrased the telco response
very succinctly. "NCTA is trying to stall; trying to convince people that
we should be treated as a joke. When that tactic eventually fails, then
they will resort to litigation which will go on into the next century; all
the while they keep ripping off the public with their inferior service and
broken promises."
Well my-oh-my, haven't the telcos become the poor down-trodden victims
all of a sudden? Isn't that precious....the pot says the kettle is black!
About that conference: Entitled "The New Video Marketplace: Business
Opportunities for Telcos and Cable Operators", the conference will deal
with all sorts of interesting ideas and concepts in the field of cable
TV and the 'threat' by the telcos. Or is it a 'threat' by the cable guys?
October 23-24, 1989
Ritz-Carlton, Buckhead, Atlanta, GA
The conference chairman will be Henry Rivera, Partner; Dow, Lohnes and
Albertson. Conference fee: $695.
Information and registration available: Telecom Publishing Group
ATTN: Conference Registrar, PO Box 1455, Alexandria, VA 22313-2055.
Phone 800-327-7206 or 703-683-4100. FAX: 703-739-6490