DSL Prime: “Few have caught on to the new telco problem, how devastating any loss of lines is to telco profits.” … “BellSouth CFO Ron Dykes is very clear; half of the earnings shortfall came from competitors taking lines.”
This is a good illustration of what I’ve long thought of as the “can’t get there from here” problem in telecom. We have enough competition to hurt incumbents, but not enough for new entrants to survive or for prices to fall. It’s the worst of all possible worlds. The paradox of the best network is a related conundrum. As bad as things are, though, the wrong answer is the one Eli Noam proposes: going back to the good old days of monopolies.