I think much of this is just hot air that has no chance in hell of happening as described, but it is something to be concerned about. Large technology corporations are feeling more threatened than ever, and this is their way of trying to regain control of the digital world that is slipping through their fingers.
I find myself in a very interesting situation. I'm a conservative and identify myself as a Republican because I support the party's conservative platform. However, I'm a big supporter of Open Source and free software and tend to be against large technology corporations, which is a point of view often taken up by liberals (at least the more tech-savvy ones) and often looked-upon indiffrently or even shunned by my fellow conservatives. While I agree with several (but not necessarily all) of the arguments for open source, open standards, and free software, I don't consider corporate, closed source, proprietary software or hardware to really be a bad thing as long that there is healthy competetion in the market and the end user (or consumer) gets a fair deal that he or she is happy with. The problem is that, instead of competing fairly and providing the consumer with the best balance of quality, functionality, and affordability that best fits the consumers needs, these companies are too busy trying to shut each other out of the market so they can dictate what the consumer gets and at what price, thereby eliminating competition between same-service providers and allowing the prevailing service providers to form the kind of alliance that is being described in this article. This is totally contrary to the free-market system that is so charished in the US and other similar-minded countries (to any of you non-Americans who take offence to being labled as similar-minded, I appologize. I'm simply placing all nations that use the free-market system in one category).
Here's where things like Open source, free software and services, and open standards come into play. In the badly lopsided corporate mess of the technological world of today, these things are beginning to act as a system of checks and balances. Throughout the last couple of decades, there as been a trend to move away from proprietary systems and towards more openly accepted and implemented standards, which makes for much better interoperability and allows for healthier competition between competing providers by focusing on the true quality of the product rather than if it can use a certain standard or not. Providers of free software and services, when allowed to compete fairly, help non-free providers stay in touch with the consumers and really listen to what they want because, in order for consumers to choose them over a free alternative, they have to find out what the conumer wants that they can't get from a free service, and then provide it. Lastly, open source software, when allowed to compete fairly, can play a very important part in maintaining a stable and healthy economy, while at the same time encouraging technological growth and innovation. Anyone can take a piece of open source code and modify it however they see fit. If they think they've made something that people would pay to use out of it, they can sell it. This means that any open source user is a potential open source developer and contributer and can even make money off of it, provided that they produce a good quality product that can generate enough demand. Such is not the same for closed source software, which Microsoft and like-minded companies swear by.
The free-market is driven by the "me" factor. Everyone envolved, both producers and consumers, are more concerned with what they get than with what they give. Notice that in my above argument for open source and like-minded endeavors, I highlighted how both producers and consumers "get more" from this model. The biggest problem that large technology corporations have with this is that it means that they have to compete fairly in order to be successful. But they often forget that there are two equal players in the free-market system, producers AND consumers. If the big corporations think that they can dictate terms to consumers as described in the article, they are sadly mistaken. Consumers will go with whoever can best provide what they want at the best price. Those who know that a better service could be made available to them at a better price and have been abused by the corporate monopolies' unwillingness to provide for their needs to the point where they are pushed beyond their threshold of social inertia, they will find a better solution for themselves.
In short, the free-market cannot abide the model layed out in this article.