Sunday, March 05, 2006

Ma Bell is coming back together.

AT&T to buy BellSouth in $65B deal - Business -

So much for splitting up the original AT & T. I don't know what SBC is really thinking here. In my opinion SBC had a better image than AT&T which was known for shoddy support and poor customer service. So what happens, SBC changes it's name for name recognition. I don't know if it was worth it. I personally felt more comfortable with it being SBC. I like being served by SBC, I do have Cingular wireless, which is now, AT&T. Most likely the good thing for me is that it will expand my free calls to anyone with AT&T wireless. However, out of everyone I know they either have Nextel, Verizon wireless or Cingular already. I find it extremely strange that nobody that I knew had AT&T wireless. I don't understand how the Bells that were forced to split are allowed to combine back up. GTE and Atlantic Bell did it to form Verizon, now within a year SBC has swallowed up 2 others. Doesn't this put create the same lack of competition that existed prior to the breakup? I can see allowing them to expand their service to compete in other markets to offer more competition, but I don't see how allowing them to merge is beneficial to competition.

I bet in the next year there's going to be an announcement for about 50,000 people being let go from the company. Those people that used to do the job before just aren't needed anymore. There's definitely a lot about the financial markets of this country that I don't get. I completely understand how this will allow the larger company to streamline operations and provide the same service for less money, thus allowing the company to earn more and making shareholders happy, but it's going to be very bad for about 50,000 employees. How does the economy absorb that kind of a glutton of unemployed people? When companies keep combining and laying off people, where do those unemployed go? I'm not talking about some socialist organization stepping in, I just want to understand how the economy keeps absorbing them. There aren't that many places that are hiring people. It's not like the 50,000 just spread out around the country and find jobs somewhere else, it's going to be more localized than that. Well, at the least some of them could probably join some kind of construction union and go bust their ass in Louisiana, it's going to be busy for about the next 4 years getting things back into pre-Katrina state. Then they can keep busy by being seasonal construction workers in Alabama and Florida. Those places are always getting hammered by hurricanes.