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Author: Gerald R. Faulhaber
Publisher:
ISBN:
Category :
Languages : en
Pages : 55
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Book Description
Last year's Annual Report and Analysis of Competitive Market Conditions with Respect to Mobile Wireless broke new ground by not concluding, as had prior reports, that the wireless services market was “effectively competitive.” This year's report did the same. The 14th and 15th reports review a wide variety of evidence, both direct (how firms and customers behave) and indirect (industry concentration measures) in making its competitive assessment. The reports are silent on how to interpret this evidence. In contrast, modern antitrust analysis relies far more on direct evidence. In failing to put more weight on the relevant direct market evidence to reach an informed competitive assessment, the 14th and 15th reports invite erroneous conclusions about the real state of competition in wireless markets. We are concerned that these erroneous conclusions eventually could adversely influence regulatory policy in wireless markets. Before economists came to rely on direct measures of market power, they relied on indirect measures, such as market share in the relevant markets, the Herfindahl-Hirschman Index (HHI), and market definitions. The 14th and 15th reports downplayed direct evidence of competition - namely, aggressive pricing behavior, robust entry, and continued long-term reductions in price, all of which strongly support a conclusion of “effective competition.” Instead, the FCC focuses on inferences of market power based on market shares. For example, the FCC makes much of the combined share of the top four wireless providers generally, and of the top two wireless providers, AT&T and Verizon, in particular. To test the FCC's presumed relationship between market structure and prices in the wireless industry, we analyze the TNS Telecoms database of cellular telephone bills. We find no statistically significant relationship between a household's monthly wireless bill and the HHI of the economic area in which the household resides. Thus, market concentration does not appear to have an impact on what the customer actually pays. This finding, along with the fact that wireless prices have declined over time as industry concentration has increased, undermines the structure-conduct hypothesis that undergirds the FCC's market-share analysis. Finally, we discuss the policy implications of our findings for handset exclusivity and spectrum allocation.
Author: Gerald R. Faulhaber
Publisher:
ISBN:
Category :
Languages : en
Pages : 55
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Book Description
Last year's Annual Report and Analysis of Competitive Market Conditions with Respect to Mobile Wireless broke new ground by not concluding, as had prior reports, that the wireless services market was “effectively competitive.” This year's report did the same. The 14th and 15th reports review a wide variety of evidence, both direct (how firms and customers behave) and indirect (industry concentration measures) in making its competitive assessment. The reports are silent on how to interpret this evidence. In contrast, modern antitrust analysis relies far more on direct evidence. In failing to put more weight on the relevant direct market evidence to reach an informed competitive assessment, the 14th and 15th reports invite erroneous conclusions about the real state of competition in wireless markets. We are concerned that these erroneous conclusions eventually could adversely influence regulatory policy in wireless markets. Before economists came to rely on direct measures of market power, they relied on indirect measures, such as market share in the relevant markets, the Herfindahl-Hirschman Index (HHI), and market definitions. The 14th and 15th reports downplayed direct evidence of competition - namely, aggressive pricing behavior, robust entry, and continued long-term reductions in price, all of which strongly support a conclusion of “effective competition.” Instead, the FCC focuses on inferences of market power based on market shares. For example, the FCC makes much of the combined share of the top four wireless providers generally, and of the top two wireless providers, AT&T and Verizon, in particular. To test the FCC's presumed relationship between market structure and prices in the wireless industry, we analyze the TNS Telecoms database of cellular telephone bills. We find no statistically significant relationship between a household's monthly wireless bill and the HHI of the economic area in which the household resides. Thus, market concentration does not appear to have an impact on what the customer actually pays. This finding, along with the fact that wireless prices have declined over time as industry concentration has increased, undermines the structure-conduct hypothesis that undergirds the FCC's market-share analysis. Finally, we discuss the policy implications of our findings for handset exclusivity and spectrum allocation.
Author: Mark Goldstein
Publisher: DIANE Publishing
ISBN: 1437938442
Category : Technology & Engineering
Languages : en
Pages : 57
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Book Description
Americans increasingly rely on wireless phones, with nearly 40% of households now using them primarily or solely. Under federal law, the FCC is responsible for fostering a competitive wireless marketplace while ensuring that consumers are protected from harmful practices. This report discusses changes in the wireless industry since 2000, stakeholders' perceptions of regulatory policies and industry practices, and the strategies FCC uses to monitor competition. To conduct this work, the report conducted case studies in both rural and urban areas of four states; and interviewed stakeholders representing consumers, local and state agencies and officials, and various segments of the industry. Charts and tables. This is a print on demand report.
Author: United States. Federal Communications Commission
Publisher:
ISBN:
Category : Telecommunication
Languages : en
Pages : 986
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Book Description
Author: United States. General Accounting Office
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 64
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Book Description
Author: United States. Congress. Senate. Committee on Commerce, Science, and Transportation
Publisher:
ISBN:
Category : Broadband communication systems
Languages : en
Pages : 128
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Book Description
Author: John P. Burnham
Publisher: Prentice Hall
ISBN:
Category : Business & Economics
Languages : en
Pages : 260
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Book Description
The book offers end-to-end coverage of these issues, and more."--BOOK JACKET.
Author: Chinmoy Kumar
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The wireless industry was among the most competitive industries in US. There were scores of players all across the country that competed on poor margins. The market had reached a level of saturation from whereon it had become difficult for operators to grow further. In the new business scenario, mergers and acquisitions had emerged as potential alternatives that ensured, for the carriers a better market share. While some pro-consumer groups were apprehensive of the effects of consolidation, many industry observers found it a scope to accelerate technological advances by giving companies the resources to deploy high-speed networks. However, there was also a simmering fear that too much consolidation could choke off the competition that had made wireless the most dynamic of all sectors. This case provides the readers with a broad understanding of the US wireless market, the competitive scenario therein, technological regulations, the standards and the market trends.
Author: United States. Congress. Senate. Committee on Commerce, Science, and Transportation
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 226
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Book Description
Author: Jean-Jacques Laffont
Publisher: MIT Press
ISBN: 9780262621502
Category : Business & Economics
Languages : en
Pages : 340
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Book Description
The authors analyze regulatory reform and the emergence of competitionin network industries using the state-of-the-art theoretical tools ofindustrial organization, political economy, and the economics ofincentives.
Author: United States. Congress. Senate. Committee on the Judiciary. Subcommittee on Antitrust, Competition Policy, and Consumer Rights
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 256
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Book Description