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Republic Wireless to Ditch Fair Use, Goes Unlimited

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Replying to:  Vaguely related flame post. by Troll-Bait   Dec 22, 2011, 9:29 PM

Re: Vaguely related flame post.

by WiWavelength    Dec 23, 2011, 1:00 AM

Troll-Bait said:
Imagine how a company, as innovative as this one, would do if the AT&T/T-Mobile merger had been allowed to go through. ESPECIALLY if the predictions of the government control advocates are correct and AT&T's prices went through the roof following the merger.

People would be scouring the country for alternatives, leaving the big bad "monopolies," "duopolies," or whatever you want to call them behind and looking for companies just like this!


You make a decent point, Troll-Bait. But it overlooks numerous negative possibilities. Consider these caveats.

Republic Wireless is an MVNO, and it operates on the Sprint network. That is important for at least two reasons.

One, like all MVNOs, Republic is dependent upon the network of its host mobile operator. If no Sprint, then no Republic. And the increased anti competitive clout of a combined AT&T-T-Mobile threatened the future viability of Sprint.

Two, Republic is not an MVNO on the AT&T network. Why not? Would AT&T ever allow such an innovator on its network and possibly threaten AT&T's own entrenched business model?

So, you could easily imagine a scenario in which the AT&T-T-Mobile merger is approved, then Sprint succumbs to immense anti competitive pressure and merges with VZW. The true national duopoly is formed. With no other national competition, AT&T and VZW independently work to hold up prices. Furthermore, VZW kills off Republic's MVNO access. And neither AT&T nor VZW allow another innovator like Republic on their networks ever again.

That is the potential consequence of allowing only two companies to buy up nearly all of the supply in an industry that has very high natural barriers to entry. Those two companies, fat and happy, can stymie innovation and shut out new competition.

AJ

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