FCC Not Convinced U.S. Market is Competitive Enough
May 21, 2010, 10:33 AM by Eric M. Zeman
The Federal Communications Commission has changed it stance on the competitive nature of the U.S. wireless market. Previously, the FCC labeled the market "effectively competitive." Due to a lot of consolidation in the market over the past 18 months, the FCC now says, "some things are not right." The FCC believes that competition has "dramatically eroded and is seriously endangered by continuing consolidation and concentration in our wireless markets." The FCC's report on competition notes that the market has consolidated by one-third since 2003, meaning consumers have fewer overall choices when it comes to wireless network operators and services. The FCC points out that the nation's two largest network operators -- AT&T and Verizon Wireless -- hold 60% of the entire market in terms of subscribers and revenue. The FCC stopped short of saying that it plans to introduce new regulations, but this new report and its findings lay the groundwork for change. The industry disagrees with the report. Verizon Wireless issued a statement, saying, "The U.S. has the most intensely competitive wireless market on the planet, and it's becoming more competitive by the day."
more info at Wall Street Journal »
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