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It's Boiling Down to Cable vs. Telecom

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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.

Is greater collaboration among telecom and cable companies good for consumers?

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.

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