Introduction 3
drives the restructuring of national economies and culture, and this has con-
sequences for communication industries. The communication industries in
Asia and Latin America, as well as in the U.S., have consequently undergone
a substantial transformation commonly referred to as neoliberal reform.
More specifically, over the last two decades, global communication indus-
tries have experienced dramatic neoliberal transnationalization. Critical
political economists argue that neoliberalism has expanded and enhanced
corporate profit making opportunities (Hart-Landsberg, 2006). Several the-
oreticians (McChesney, 2008; Flew, 2007; Bagdikian, 2004) also emphasize
that neoliberalism has resulted in the concentration of ownership within a
few mega media giants. As Robert McChesney argues (2001, p. 2), neoliber-
alism unleashed national and international politics maximally supportive of
business domination of all social affairs. As he correctly points out, “the cen-
terpiece of neoliberal policies is invariably a call for commercial communi-
cation markets to be deregulated.” As a result of deregulation, privatization,
and liberalization in the communication sector and other economic sectors,
for example, broadcasting industries have begun to continuously transform
themselves into the market-oriented communication system (McChesney,
2008; Jin, 2007). The aggressive promotion of the benefits of neoliberal
reform by the U.S. and the U.K. massively increases both the operating space
available to private corporations and the resources at their disposal (Mur-
dock, 2006). Furthermore, Grant and Wood argue (2004, p. 85) that the
global marketplaces of publishing, recorded music, film production, and
broadcasting have all come under the control of giant corporations, mainly
U.S. owned or U.S. based. As these scholars emphasize, neoliberalism engi-
neers the restructuring of national economies and boundaries, and this has
consequences for communication industries.
While the trend of acquiring multimedia and multifunctional networks
has expedited the integration process (Schiller, 2007), the high level of M&As
in the Internet services industries has also been expanded with the rapid
employment of neoliberal globalization—the integration of the global econ-
omy into the liberal capitalist market economy controlled by a few Western
countries. Neoliberal globalization is characterized by interlocking features,
including policies that promote liberalization, deregulation, privatization,
and capital investment (Lindio-McGovern, 2007). Neoliberal globalization
began in the early 1980s and continued throughout the 1990s and the early
21st century, although corporate integration started several decades ago.
The liberalization of controls on foreign direct investment and movements
of capital has fostered vertical and horizontal integration through M&As
(Kelsey, 2006, p. 196). The Telecommunications Act of 1996 in the U.S.
and the 1997 WTO agreement have especially expedited mega M&As in
the communication industries, because these two historical events alongside
transnational corporations (TNCs)—whose policies and practices serve the
interests of monopoly capital—are the major instruments of neoliberal glo-
balization (Lindio-McGovern, 2007, p. 2), and the Internet services industry