America’s Network has a story that validates a major point we’ve been making here for a while: the Cox/BellSouth alliance against LUS is artificial and cannot last.
As this article points out, cable companies like Cox are poised to take major market share from incumbent local exchange carriers (ILECs) like BellSouth by rolling out internet-based telephony in the form of Voice over Internet Protocol (VoIP).
The LUS fiber project is something of a welcomed distraction for BellSouth. The fact is that Cox is about to take a huge bite out of BellSouth’s customer and revenue bases with this new initiative and, because BellSouth has no entertainment package and no network infrastructure robust enough to match the Cox offerings, they are going to be at a competitive disadvantage in south Louisiana for years to come.
That first giant sucking sound you hear will be Cox taking market share away from BellSouth. The second could be LUS doing the same to both of those companies once its system is up and running, and beyond the legal challenges which are as sure to come as the sun morning.
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