April 24, 2000

STORY:
The government may order computer giant Microsoft to break up into two or three smaller companies. If that happens it could be good news and bad news for consumers — just as it was in the breakup of AT&T.

WHO:
Warren Martin, Ph.D., professor of marketing at the University of Alabama at Birmingham (UAB). Martin is an expert on Internet marketing.

WHAT:
“Clearly, parts of the historical model are going to apply,” Martin said. “The question is which parts.”

WHY:
“Both of them are or were huge technologically based companies that had dominant market share, both of them were broken up by court order because of a relatively tenacious competitor suing them — MCI in the case of AT&T,” Martin said. But the similarities may go deeper.

In the case of Ma Bell, the break up into the Baby Bells, and a differentiated long distance carrier opened up the market to competition, and ultimately brought down long distance fees. New technologies have developed, making it possible for people to communicate worldwide much easier than before.

“But at the same time, there’s lots of confusion about telephone bills” and consumers may be actually paying more — with custom calling, wireless and other services — than they did in the days of the old monopoly.

CALL:
Warren Martin, Ph.D., UAB School of Business, (205) 934-8851.