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AT&T To Buy Cricket

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Top message:  They're buying it to dismantle it? by ReaperXero   Jul 12, 2013, 9:01 PM

Replying to:  Re: They're buying it to dismantle it? by T Bone   Jul 13, 2013, 11:15 AM

Monopolies

by Rich Brome (Moderator)    Jul 13, 2013, 2:12 PM

Huh? If you buy out all of your competitors, and the barriers to entry are high enough, you can absolutely create an effective monopoly in a free market. And the economic advantage is that you can then raise prices.

That's why the government actively works to prevent monopolies.

In the wireless market, things are further constrained by the fact that radio spectrum is a limited resource. If you own all of the relevant radio licenses in a market, then you absolutely have a monopoly.

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