Not too long ago, two uniquely large and historically significant mergers gained national attention in the United States.  The first merger combined SBC Communications, Michigan’s largest local phone and data provider with AT&T, the undisputed telecommunications service leader to Fortune 1000 corporations, and the largest long distance and competitive provider challenging the former Bell operating companies for customers nationwide.  The second merger combined Verizon with MCI.

These mergers have already demonstrably impacted a majority of Michigan’s telecommunications customers. For most urban U.S. consumers today, the communications market is rapidly deteriorating into a duopoly dominated by the Bells and cable operators.  Michigan, however, is fortunate to have some very credible competitive alternative providers currently operating in the state’s more urban markets.

Since 1996, telecommunications competition has generated more than $150 billion of investment and created 77,000 new jobs nationally-- thousands in Michigan. Our company, TDS Metrocom, has invested nearly $200 million in the state over the past six years and added nearly 200 high-paying jobs to the Michigan workforce and tax base.

If you agree local phone competition from companies like TDS Metrocom has helped all consumers by challenging companies such as the new AT&T and Verizon to lower their retail prices and improve sluggish customer service, you should be skeptical of the claims that “bigger is going to be better.”

History reminds us that in previous merger deals, like SBC’s acquisition of Ameritech, the lists of benefits were long and attractive, yet the results were fraught with broken promises and the benefits are still yet to come.  In fact, SBC paid literally millions of dollars in fines and penalties rather than change its behavior.

Commentary about new technologies and changing markets cannot change basic economic facts. Companies like SBC/AT&T, with massive market power and control of “last-mile” facilities and huge chunks of valuable wireless spectrum, have both the incentive and ability to use their market power to harm consumers, competitors and even product vendors, some of whom operate small entrepreneurial businesses in Michigan.

The new AT&T and Verizon continue to offer arguments that there is already plenty of communications competition coming from wireless, unproven voice-over-the-Internet (VoIP) providers, or even their arch nemesis, cable.  If you remain unconvinced these mergers will have much of an impact on your daily communications needs or your bank account, consider who owns the wireless company suggested as an alternative: in SBC and AT&T’s case, it’s the same corporate entity, operating as the nation’s number-two wireless provider, Cingular.

If you work for or own a business in Michigan, have a home or rent an apartment, simply ask yourself if you are ready to forego the network reliability, the customer care and the historical quality of wireline communications for something that may or may not work in a rainstorm, in certain locations within your office or residential building, or even allow you to call 911 in an emergency situation.

TDS Metrocom realizes how difficult it is to contemplate the magnitude of this acquisition.  Having said that, try to keep in mind that as more and more of the "bigger" phone and cable companies gobble up other providers, it will ultimately mean less choice and higher prices for you.

		Jim Butman is Group President-Competitive Telephone Operations for TDS Metrocom serving the greater Southeast, Central and West Michigan areas.