Market Power in the Telecommunications Industry

Market power in the telecommunications exertion I. Introduction When Alexander Graham gong patented the telephone on March 7, 1876, there were moreover a few pack that thought that this new intent was worth investing in (Thierer, 1994). However, the use of the device behind gained importance, starting with business users and expanding to all other consumers (Thierer). Thierer (1994) describes the nineteenth coke as the era of the telephone. He continues that it was mainly characterized by the doorbell patent monopoly, an American Telephone Company formed by Graham cost in 1877. chime received a U.S patent which gave him the exclusive right to sell his product for fifteen years. The Bell patent monopoly allowed the company to grow in strong numbers. From 1880 to 1895, average daily calls rose from only 4.8 to 37 per 1,000 of population. However, the Bell patent monopoly period was not as beneficial for the prolongation of service as the competitive period that followed. Daily calls per 1,000 people jumped from 37 in 1895 to 391.4 in 1910. Even though Bell was the pencil lead firm in the monopolistic telecommunications industry, it was unable to booking off the many new firms that were waiting to enter.

Another understanding why the telecommunications industry started as a monopoly was because frequency spectrum licenses handiness was so scarce and the efficiency in using the resources was so poor. Governments made it hard for new networks to acquire licenses for telecommunication networks which caused accredited problems for new, upcoming companies to enter the industry. As more companies entered the industry, more countries adopt an oligopoly market structure where several mobile telecommunications services were allocated to a single operating network. This paper looks at how the telecommunication industry moved from a monopolistic towards an oligopolistic market structure and how leading firms increase in market power. Firstly, the paper illustrates the... If you want to rile a full essay, order it on our website: Ordercustompaper.com

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