Time Warner (TWX) CEO Dick Parsons says in the next five years there will probably be only two or three big cable system operators remaining, as the industry braces for fierce competition from the Telcos.
At the National Cable & Telecommunications Association's show in Las Vegas Parsons was asked, "In five years, could you have two or three that constitute the industry? His answer was absolutely "yes."
Some of his reasoning is the cost of upgrades to older cable systems could force smaller cable companies to make the move consolidate to remain competitive against big companies like AT&T (T) and Verizon Communications (VZ), which have been spending a lot of money to provide competitive services.
Parsons also weighed in on the rumored talks between Microsoft (MSFT) and Yahoo Inc. (YHOO) and how it could effect Time Warner saying, "If Microsoft and Yahoo were to come together to form the 'Anti-Google', that could have an implication in terms of how closely we work with them, or how much more closely we work with Google."
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