We are witnesses to history in the making. Yes, yes, tomorrow’s students will study the impeachment
of President Clinton in History class (now isn’t that something to look forward to), but that is not what I am talking
about.
Tomorrow’s students also could learn about the U.S. government’s ebbs and flows of regulating American
businesses by studying the nation’s telecommunications history.
In 1984, the Supreme Court ruled that American
Telephone & Telegraph Co. must divest its local and long-distance businesses. Too much power was too concentrated
in one company. Hence, seven Bell Holding companies and one long-distance business were created.
Today those
seven companies are five, and tomorrow there will be four … or three … or two … or what?
AirTouch
Communications Inc.-which used to be the better half of Pacific Bell until Pac Bell split its wireless and wireline
business-is going to find a mate. The only question that remains is who the lucky suitor will be.
When AirTouch
first aligned with U S West Inc.’s wireless properties, and Bell Atlantic Corp. slid its wireless licenses next to those
held by Nynex Corp., industry watchers (including me) said it was just a matter of time until those four companies
became one. While it didn’t work exactly that way, the companies ultimately created PrimeCo Personal
Communications L.P. to bid for PCS licenses, and Bell Atlantic and Nynex wed so well that Nynex no longer exists.
More than one person has speculated it’s just a matter of time until U S West is acquired.
Of course, AirTouch may
choose to tango with Vodafone plc or MCIWorldCom Inc. instead of Bell Atlantic. And it’s not inconceivable to
envision an MCIWorldCom/Vodafone/Bell Atlantic/AirTouch alliance. (Meanwhile, pity the poor people at PrimeCo,
whose heads must be spinning with each potential alliance.)
Many will argue AT&T is not being rebuilt, but
something is.
I wonder what it’s going to look like. And which history lesson it will teach.
