I hate to go away from talking about fun things on the weekend. But before I forget I wanted to get this thought out. Did you happen to catch this news article in the Deseret News earlier this week? The main point? Competition for telephone service in Utah can be broken into three categories; (1) Qwest (the incumbent LEC); (2) Rural Telcos; and (3) Qwest Competitiors. The numbers break down this way:

1. Qwest - 73.7%
2. Rurals - 7.8%
3. Competitors - 18.5%

Also, in the past year Qwest has lost nearly 100,000 lines, while competitors have picked up about 60,000 lines. Qwest serves about 62% of the commercial business in their service territory and about 89% of the residential.

Apparently the Utah Public Service Commission understands that competition hasn't taken hold completely in the state of Utah. But they also appear to be optimistic about competition and the state of the telecommunications industry in Utah.

I would feel better about it if I felt that these competitors, and Qwest, were healthy. But I don't see that. What I see is an industry that is still suffering from a bad economy, suspicious investors and a propensity to cut their own throats. I'm concerned. The outward signs are positive. The fact is that there are many carriers that have recently folded and many more that are looking pretty sick.

Last week I had a conversation with one of the big competitors in the area. They met to tell me that they are part of a companywide cutback. They are losing their jobs. And they are part of a big, recognizable, somewhat healthy company. What will happen to the smaller, weaker carriers? I can't wait to find out.........
9:11:43 PM    comment []