There are two questions for this discussion which are based on these articles regarding the cell phone industry.
- Consumer protection for cell-phones exists through the FCC. https://www.usa.gov/phone-tv-complaints (Links to an external site.)
- http://arstechnica.com/business/2014/07/industry-self-regulation-has-cost-cell-phone-users-millions/ (Links to an external site.)
- http://www.nytimes.com/2014/08/24/business/two-countries-two-vastly-different-phone-bills.html (Links to an external site.)
- http://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_USA_by_AT%26T (Links to an external site.)
Some argue the cellphone market is similar to a natural monopoly due to natural barriers to entry others say that it is not a natural monopoly due to the leasing of the towers and technology. Regardless of your position, there are barriers to entry due and the cell phone industry is characterized as an oligopoly in the United States and England. Use your intuition from class on Natural Monopoly as well as from class on Oligopoly to form your responses to these questions.
- Should the cell phone industry be more highly regulated (price limits on service), why or why not?
- Is maintaining competition a good thing (limiting acquisitions and mergers) in this market given the outcome?