4-3 mergers, according to the best available evidence, result in higher prices. See 4 To 3 Wireless Mergers Doubled Relative Prices: Rewheel Nearly everyone unbiased sees it that way. But two scholars brought to the discussion an irrelevant AT&T-sponsored paper. It was written by three economists, at least one excellent, who wouldn't have come to the same conclusion if they understood how wireless technology is improving.
Verizon provided an estimate that wireless cost per bit delivered was going down 40%/year. 40% may be a little high, but the improvement in cost/bit is remarkable. That means that prices would go down even in a monopoly, much less 3-6 carriers. Rewheel compared Germany & Austria, which went from 4 to 3 with six countries without a merger. (2013-2018) Relative prices in Germany and Austria were much higher.Add a comment