THE WIRELESS-CABLE MERGER

Wanganui Chronicle, Volume LXXXIII, Issue 20106, 27 March 1928, Page 6

THE WIRELESS-CABLE MERGER

'j’lLE .MERGER between the Marconi Company and the Eastern Extension Cable Company is being followed up by an at-

tempt io secure control of the Government’s Atlantic and Pacific cables, as well as the beam system of the Post Office. Mr Baldwin says that the Government is in no wise committed to the principle, but The Times is rather inclined to favour a complete merger provided British control is absolute in the British sphere. There is a very grave side, however, to the proposed merger. Beam wireless has already influenced reductions in cable rates, and it is extremely probable that it will be able very soon to operate on rates that would represent a losing proposition to the submarine cable companies. The merger, therefore, may be regarded as an effort by the cable companies to restrict wireless development in order to conserve their own interests.

From the viewpoint of the overseas Dominions, indeed, the

merger is about the worst thing that could happen, and it is not surprising to find the matter very' warmly debated in the House of Commons. It would be a disaster, we think, if the Post Office abandoned control of beam or cable systems, because on the score of defence alone it is essential that the Governments of all British countries should have an absolute free hand. But the most dangerous development of the merger, undoubtedly, is the squeezing of the consumer, who is to be denied the advantages of a very wonderful development in communication because vested interests are on the point of losing substantially.