Telecom and cable companies are fond of saying how much competition exists in their respective industries. Dissatisfied customers can always take their business elsewhere, the companies insist.
In fact, few telecom and cable companies actually compete head to head. And now, these businesses are forming unprecedented partnerships as the two industries vie for nationwide dominance over voice, video and Internet services.
AT&T Inc., Verizon Communications Inc. and Qwest Communications International Inc. -- the three biggest U.S. phone companies -- announced last week that they're working together for the first time to help customers stay connected when they move to a new city.
The companies' new website, Movearoo.com, describes itself as "a one-stop shop for America's moving needs," offering everything from bundled telecom services to change-of-address forms.
What the site doesn't include is any information about what local cable providers may offer for people seeking cheaper communications alternatives.
Meanwhile, six leading cable companies have banded together for something called Project Canoe, which is intended to create a nationwide system for targeting ads to specific viewers.
Project Canoe could give the cable industry a leg up on telecom companies by making their networks more attractive to marketers.
Both Movearoo.com and Project Canoe represent an evolution in how telecom and cable companies operate, an escalating of competition from the company level to that of entire industries.
"It's a duopoly," said Michael Shames, executive director of the Utility Consumers' Action Network in San Diego. "It's two titans battling for the hearts, minds and wallets of consumers."
According to Frank Kellam, Verizon's business development manager, the three big phone companies have been quietly planning for the last year and half to create a "solution to ease the stress of moving."
He said the detente among AT&T, Verizon and Qwest reflects a changing business environment in which cable and, to a lesser extent, online Voice over Internet Protocol service providers like Skype are encroaching on phone companies' traditional territory.
"We are adjusting our strategy to keep our customers away from the cable and VoIP companies," Kellam said.
Joe Izbrand, an AT&T spokesman, echoed this sentiment. He said the telecom companies want to ensure that no matter where people move, "they have choices other than cable companies."
