Question

In the fall of 2017 the FCC concluded there is “effective competition” in the U.S. wireless market. Investigate this using reputable sources (and list your citations). Keep your answer under 3 pages. Identify the 4, current largest wireless carriers and their respective market shares b. Identify the carrier with the largest market share, each year since the beginning of the wireless industry (and include each year’s market share) c. Cite 3 events (e.g., mergers, technological advances, legal issues, etc.) since the beginning of the industry which have had a significant impact on the industry; identify any industry trends you see which are linked to these events

Answer 1

ANS (a) FCC refers to the Federal Communications Commission. As per a report by Anna Marla Kovacs, Americans rely easily on wireless services, with more and more households becoming wireless only. Their appetite for wireless devices and usage appears insatiable, with wireless connections continuing despite a penetration rate of over 120%. The usage and practice are driven by video as well as a host of new applications and are protected by Cisco VNI and LM. However, migration to 5G, which is the next generation to wireless technology, will provide improvements to the capacity and quality that those applications will require.

The capital investment by the wireless industry totaled to $25.6 billion in 2017 and $514.6 billion over the life of the industry, which has funded prior technology transitions and is expected to fund the migration to 5G. Accenture estimates that the wireless industry supports 4.7 million jobs across the economy and contributes $475 billion towards the GDP.

But as the Federal Communications Commission (FCC) found in its Twentieth Wireless Competition Report, there is effective competition in the wireless market. Data from the Bureau of Labor Statistics (BLS) shows falling prices. As per the annual survey conducted by CTIA the average revenue per unit is on a fall. The market share is shifting with a vast majority of retail net adds in the last three and a half years captured by T-mobile.

However, the 4 current largest wireless carriers are:-

- Verizon with a market share of approx 153.9 million

- AT&T mobility with a market share of 150.2 million

- T-mobile with a market share of 79.7 million, and

- Sprint Corporation with a market share of 53.5 million

ANS (b) However, the carrier with the largest market share is Verizon. with having approximately 145.74 million customers as of the fourth quarter of 2016. Verizon had 10 million more subscribers than AT&T and more than twice as many as T-mobile users. Verizon was founded in 1983 and announced revenue of 125.98 billion US dollars in 2016. While the net income attributable to Verizon fell to $4.2 billion or $1 per share in the second quarter ending June 30, from $4.36 billion or $1.07 /share. The Total Operating revenue rose to $32.2 billion from $ 30.55 billion a year exceeding estimates for $31.78 billion. The company earned $ 1.2 per share.

However, Verizon plans to attach apple music access to two of its unlimited mobile phone plans without any additional costs to consumers. While it has previously offered customers a six - month Apple music trial on select plans, the extension will give ongoing access to new and existing customers on Verizon.

Ans (c) It was three years ago that AT&T had offered $ 39 billion to buy 4th place wireless carrier T-mobile and was so sure that it would get the deal done, it promised a $4 billion breakup fee if it didn't. But the Department of Justice and the FCC had different ideas and killed the merger.

However, in yet another case the In A "MERGER OF EQUALS" between Sprint and Nextel worked out as a $35 billion merger in 2005. The companies served different users bases Nextel was more of a business brand, with customers often drawn to its signature walkie-talkie technology. Sprint, on the other hand, was aimed at consumers and emphasized data communications, right around the time when smartphones were just about to catch on. But unfortunately, the benefits of this union never materialized. The two companies networks proved difficult to integrate and the top Nextel executives started leaving immediately after the merger and Sprint had shut down Nextel's networks in 2013.

However, in a Third event, the merger between AT&T and NCR also proved to be a failure. AT&T isn't just one of the largest communications conglomerates in the world and is also the home to the AT&T Labs research division, which has been responsible for countless discoveries and innovations. In 1991, the takeover of NCR by AT&T for about $7.48 seemed like a logical step. But when the newly acquired company didn't turn a profit, it became a liability.