Linked by Thom Holwerda on Tue 6th Sep 2011 21:57 UTC
PDAs, Cellphones, Wireless In the US wireless market, AT&T is currently attempting to buy T-Mobile to create one heck of a behemoth wireless provider. While earlier this week the US government already filed a lawsuit to block the merger, citing antitrust concerns, US carrier Sprint has now also filed a lawsuit to block the merger.
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Alfman
Member since:
2011-01-28

cyrilleberger,

"It is because wireless is not a free market, but a regulated one. If it was a free market, it would be possible for anyone to create a competitor and start selling services."

Not really, you cannot ignore that the radio spectrum gives the carriers something of a natural monopoly - and that regulation is needed to help break that up.

Under those circumstances the best you can do is rebrand someone else's service. Not sure about the rest of the world, but rebranded telco DSL was insanely popular in the US a few years back. I suppose that was a form of competition, but it was not competing networks, merely competing billing agencies.

In any case it was only because of regulation that this was possible, otherwise one corporation would own the whole network (again).

Edited 2011-09-07 07:48 UTC

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