Business Services Industry
FCC Chief Warns Phone Companies against Onslaught of Cheaper Internet Services.
Knight Ridder/Tribune Business News, May, 2004
By Harry Berkowitz, Newsday, Melville, N.Y. Knight Ridder/Tribune Business News
May 5--NEW ORLEANS -- Giant traditional telephone companies that depend on old technology and methods "ought to be terrified" by the new wave of cheaper phone service based on Internet technology, Federal Communications Commission chairman Michael Powell yesterday told thousands of cable TV industry executives, many of whom see the new service as a way to jump-start cable revenue.
"I think you will see an explosion of competition" for the phone industry, Powell said at the industry's annual convention here.
An array of cable operators are jumping into the new phone service using cable modems and technology called Voice over Internet Protocol.
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