Mark my words, the end is nigh for consumer choice in internet communications. The monopolistic juggernaut of Verizon has announced its intentions to devour Frontier Communications, the last remaining beacon of hope for competition in the American telecommunications landscape. And to add insult to injury, they’re willing to fork out a staggering $20 billion to make it happen – more than double Frontier’s market cap just a day prior. This isn’t a acquisition, it’s a hostile takeover aimed at crushing any remaining opposition.
Frontier, that scrappy underdog of a company, has managed to survive by offering bundled services with the likes of Google and Amazon. But what does it mean for them to join forces with the corporate giant that is Verizon? Nothing good, I assure you. Verizon’s primary interest is Frontier’s fiber business, which conveniently reaches into areas that Verizon has left untapped – and what does that say about Verizon’s commitment to innovation? Nothing, but that it’s willing to cannibalize its competitors to get ahead.
But let’s get to the numbers, shall we? Verizon and Frontier combined cover a staggering 25 million homes, with plans to touch 10 million more by 2026. This isn’t growth, this is an existential threat to consumer choice. And don’t even get me started on Verizon’s CEO, Hans Vestberg, who is apparently oblivious to the impact of his actions. He talks about “becoming more competitive in more markets,” but what about the countless customers who will lose out on choice and competition? The only premium offerings he’ll be delivering are higher prices and lower service.
The real kicker? Verizon has a history of selling out its customers to its corporate benefactors. In 2009, it offloaded its legacy local exchange business to Frontier for a whopping $8.5 billion – that’s equivalent to $12.5 billion in today’s dollars. What did Frontier do with that money? Invested it in expanding its own network, no doubt, while Verizon went on to milk its wireless subscribers dry.
And don’t be fooled by Verizon’s promises to maintain guidance and offset stagnating wireless revenues with this acquisition. It’s just a desperate attempt to mask the true intent of this deal: to snuff out competition and reign supreme in the American telecommunications landscape. The people demand more – more choice, more competition, more innovation – and Verizon’s plan is to take all of that away from us. The only question is: what are we going to do about it?
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