Attack of the Giants!!

That title reminds me of those old 50's, 60's horror movies. Not really scary by today's standards, but still enjoyable in their own way. However, this post is not about those movies, but about some actual giants being created right here in the United States even as I type this out. I am of course talking bout the mergers of both Verizon - MCI and SBC-AT&T. If you haven't heard about it yet, here is a short update:
Back in October both SBC and Verizon (both huge local phone service providers) announced their plans to acquire AT&T and MCI respectively. Verizon's deal has a current price tag of $6.7 Billion with a potential of several billion more (due to the need to upgrade MCI systems after the deal). SBC is shelling out a paltry $16 Billion in their offer. What the acquisition does for both parties is to grab up the two largest long distance service providers in the states, National and global IP based networks and growing voice over internet protocol or VoIP. For the long distance companies being purchased, they gain a strong local presence and dominating wireless service division to compliment their already strong long distance share.
Ok, financial and big business mumbo-jumbo aside... What does it mean for you and me? It actually means fewer choices in just the plain old local and long distance service providers.
And what can that mean? It could mean the prices would start to rise in an area that has been heading lower and lower for several years, long distance rates.
On the plus side, part of the FCC approval regulations are stating that each merger must provide access to their networks by competitors who could offer lower long distance rates simply due to the fact that they are not Mega companies with huge overheads and operating costs.
Another plus of the mergers are larger coverage by your wireless providers, stronger networks and quality, simplified billing procedures (more services from one company) and more access to high speed internet in a market that cable is quickly engulfing.