Now that the buzz has begun, it sounds so simple. News agencies reported today that Time Warner's
It's no secret that cable companies like Comcast
Telecom companies aren't taking it lying down; for example, Verizon
If cable companies are playing Ma Bell, it's certainly no shock to suspect that they might want to kick in cellular services as well. I question exactly what kind of terms Sprint would require for what seems would be an uneasy partnership. After all, wireless has been a bright spot for telecom companies, while more traditional services like long distance have proven to be dead in the water and innovations like voice over Internet protocol have added to the deterioration. Meanwhile, a new kind of consumer is being created: regardless of whether they're getting it from a cable or telecom provider, perhaps soon, there will be nothing but clamor for one bill for all communications needs.
For my own part, when I muse on what stocks, in what industries, that I'd like to look into, I can't say telecom is high on my list. Although there's nothing wrong with picking winners from the beleaguered industry (for example, MCI
Furthermore, given news like this, it makes me wonder if the future of telecom is... cable. These are industries where it bodes well to stay tuned for the next phase, which many of us might watch with interest. However, today's word on Time Warner and Sprint, while interesting, is still all talk, and no action... yet.
Time Warner and SBC are Motley Fool Stock Advisor picks; MCI is a Motley Fool Inside Value pick. Talk about this development to other investors on our Time Warner discussion board.
Alyce Lomax does not own shares of any of the companies mentioned.