November 30th, 2004
Note to telcos: Resistance is futile
Reuters has a story about how Verizon Communications intends to exercise its rights should a telco-sponsored bill that prevents Pennsylvania localities from setting up their own communications networks not get vetoed by state Governor Ed Rendell. Laws to protect big business? Rendell has until Tuesday to veto the bill. Meanwhile, Philadelphia is on the verge of lighting up a city-wide Wi-Fi hot spot and the city’s CIO Dianah Neff indicated it’s not about to cave should Verizon object. According to the story, a Verizon spokesman said "Verizon needs veto power over other municipal projects to recover the $8.5 billion it has spent during the past decade upgrading its network to handle high-speed service." So, whereas Philadelphia may be in the clear, other Pennsylvania municipalities are not.
The stakes — er, death of telcos due to VoIP products like Skype — are enormous. For years, we’ve been hearing about the day when this Armageddon-like struggle between the old and new worlds would reach full crescendo. So, welcome to Armageddon. The epic battle is well underway. I wonder if Vegas has the odds yet. My take: the telcos are a longshot.
