Report says telecommunication consolidation is good for network reliability

November 25, 2005—The current consolidation occurring in the US telecommunications industry is a step toward ensuring network reliability following threats to our nations’ security, according to a study released by homeland security expert Lee Zeichner.

In the study entitled, “State Public Utility Commissioners: Homeland Security & National Preparedness Responsibilities,” Zeichner concludes that state public utility commissioners’ current review of major telecom mergers must address not only traditional regulatory issues, such as consumer protection, but also issues like network reliability and resilience, which will continue to affect consumers well into the future.

In reviewing the mergers in the telecom industry, Zeichner asserts, “Telecommunications regulators can affect state and local government response to catastrophic disasters in profound and meaningful ways, directly impacting consumers as well as small to large-sized corporations.”

Zeichner is president of Zeichner Risk Analytics, LLC and is the former senior counsel to the President’s Commission on Critical Infrastructure Protection. In his study, he notes that two decades after the Ma Bell breakup, communications options and carriers abound. But, with multiple carriers and multiple networks, there is no comprehensive communications infrastructure map to guide disaster planning and response.

Returning to the days of Ma Bell would not be desirable for many reasons. But consumers can still reap the benefits of consolidation through natural mergers, such as Verizon-MCI and SBC-AT&T.

Zeichner explains, “At a minimum, both mergers will improve coordination prior to, during, and after a disaster.”

To view the policy brief, please visit the Web site.

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