The proposed merger of SBC and Ameritech moves Chicago consumers closer to the day when they’ll have several phone companies competing vigorously to win their local phone business.
The merger will create a new breed of communications company with a new game plan: Nationwide competition benefiting business and residential customers for local, long-distance, Internet and data services. The new firm will expand its network to enter 30 markets outside SBC’s and Ameritech’s traditional local service area and compete head-to-head with Bell Atlantic, BellSouth and GTE–not to mention AT&T, Sprint and MCI/WorldCom–and compete for residential and business customers. We will realize the broadly competitive communications market envisioned by the Telecommunications Act of 1996.
What is less obvious is that this new national-local strategy also will bring new competition and all its benefits to customers in Chicago.
When we enter the local service territories of other major telephone companies, they can’t afford to sit idly by and watch us take their customers. Our challenge will force them out of their traditional markets in pursuit of our customers, in Illinois and elsewhere. Other providers, particularly the long-distance companies, will also be challenged to come into our territory and compete more aggressively for local customers. That will translate into more choices, greater price competition and accelerated innovation.
The merger will bring new, improved products and services to our customers as we link our operations and apply the best practices of two strong companies. That has already been our experience as we have combined the operations of SBC and Pacific Telesis, and our customers will reap the same sort of benefits from this merger.
By establishing service in the top 50 markets in the country, SBC also will be able to deliver end-to-end, high-speed data services to Illinois businesses, bringing them new cost efficiencies and service improvements. We will create a state-of-the-art nationwide network that will lead to more and better services for our existing customers and allow us as never before to “follow our customers” wherever they operate, across the U.S. and around the globe.
It’s fair to ask, “Why doesn’t SBC just go ahead and do this on its own?” The fact is, without the scale, scope, employees, customer base and other resources of our combined companies, neither SBC nor Ameritech would be able to launch such an ambitious initiative alone. No company in our industry has attempted to serve business and residential customers in so many markets at one time. But, with our successful integration of Pacific Telesis last year, we have shown that we can follow through on our promises to deliver service and value, not to mention expanded job opportunities.
Some have suggested that SBC and Ameritech have set out to turn back the clock and re-create the Bell System. On the contrary, this historic combination isn’t about re-creating anything. It’s about creating the future for our industry and its customers. It’s about creating a national and global competitor, one that competes directly with other former Bell companies to deliver any service customers want–anytime, anywhere.
