Tuesday, March 22, 2011

AT&T Defends Value of its T-Mobile USA Buy

Whether a new U.S. mobile market remains workably competitive after an AT&T acquisition of T-Mobile USA is a matter for economists, policymakers and policy advocates to dispute. The analysis will be tougher because one cannot assume that the rest of the market remains unchanged, either. Whether two or three large national competitors is too many or too few to support robust innovation and competition will be something hard to establish in the abstract.

Many will argue a long-term stable market structure will ultimately feature only two dominant national players, but both operating with regional competitors and in an environment where most of the innovation comes from third parties. It isn't so clear that potentially-less "access" competition will have impact as dramatic as if innovation were not coming "over the top." Nor is it clear whether a market dominated by two contenders is not workably competitive. What is clear is that a market with two national players will, at some level, necessarily be less competitive than a market with four contestants.

http://www.att.com/Common/about_us/pdf/INV_PRES_3-21-11_FINAL.pdf

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