Phoenix Center: Fewer Wireless Companies Could Mean Lower Prices

The Phoenix Center Tuesday released a policy paper to support the argument that in a world of spectrum constraint, fewer firms, not more, providing wireless broadband can actually lead to lower prices and "possibly" increased investment and employment in the sector.

"[P]rices will likely fall as scarce spectrum resources are employed more efficiently," says the paper, "permitting firms to increase output in response to rising demand for bandwidth. With more firms, total industry capacity is lower, so that rising demand must be rationed with higher prices."

Phoenix Center President Lawrence Spiwak, co-author of the report, said that no one has formally studied how spectrum shortages affect competition in wireless communications. "If mobile carriers have too little spectrum, then the standard view that more competitors leads to lower prices is precisely backwards."

Read more -here-

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