Hal Singer on wireless competition

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July 19, 2011 · 1 comment

Hal Singer, managing director at Navigant Economics and adjunct professor at Georgetown University’s McDonough School of Business, discusses his new paper on wireless competition, co-authored by Gerald Faulhaber of the University of Pennsylvania, and Bob Hahn of Oxford. The FCC produces a yearly report on the competitive landscape of the wireless market, which serves as an overview to policy makers and analysts. The report has found the wireless market competitive in years past; however, in the last two years, the FCC is less willing to interpret the market as competitive. According to Singer, the FCC is using indirect evidence, which looks at how concentrated the market is, rather than direct evidence, which looks at falling prices, to make its assessment. In failing to look at the direct evidence, Singer argues that the report comes to an erroneous conclusion about the real state of competition in wireless markets.

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  • Anonymous

    Isn’t another way of putting it that there is already no competition?  Much of his argument seems to be that there will only be price effects from consolidation if firms are competing on commodity-type products but since they are trying to or have managed to differentiate they are effectively not competing so there will be no impact to prices from consolidation.  Isn’t he then making the case for those who say it is not a competitive market?  And the prices of text messages falling?  Where is this guy coming from???