Thursday, September 02, 2010

USA - Four operators control 90 per cent of the mobile market making it tough for smaller operators to compete

[mobile data] AT&T, Verizon, Sprint and T-Mobile control 90 percent of the wireless market, making it hard for smaller companies to compete, according to government report.

"Industry consolidation has made it more difficult for small and regional carriers to be competitive," the Government Accountability Office said in its report.

The study, conducted by the GAO, the investigative arm of Congress, compiled complaints from smaller carriers, which argue that they pay excessive prices for this same access because landline telecoms such as AT&T and Verizon own much of the critical network infrastructure.

The findings could provide evidence to back the Federal Communications Commission's recent complaints that the wireless industry does not have efficient competition.

The regulatory body, which has been extending its oversight over telecoms, is considering rules that would require providers to alert consumers of roaming or data usage limits. It is also investigating common practices like early termination fees.

The FCC's actions could shape the next major auctions of airwaves, where Sprint and T-Mobile are seeking more spectrum to better compete against AT&T and Verizon.

Last year, the Justice Department opened a preliminary investigation into whether AT&T and Verizon engaged in anticompetitive behavior by signing long-term exclusivity agreements with handset makers.

Four Major Carriers Dominate Wireless Market

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