Thursday, March 24, 2011
Why AT&T's purchase of T-mobile shouldn't be stopped
So an article from The Economist details why they believe it should be stopped before it really begins. They argue that by combining AT&T and T-Mobile they are going to eliminate choices and start a new duopoly with Verizon, something AT&T was broken up for in the past. Then they list the numbers. AT&T with T-Mobile would have a 39% market share. Combined with Verizon, it goes up to 70%. Not nearly high enough numbers to be considered a duopoly. Here's some more numbers:As of December 2010, Windows OS has a 90% market share. Mac is at 6%. Over 96% of the personal computer market share is between two companies. How about the internet? Google dominates the search engine market with nearly 85%. Yahoo brings in over 5.5%. So 90% of the personal computing market is dominated by 2 companies. Android and iOS bring in over 50% market share. McDonalds and Burger King have 94% of burger chain market share. Should we prevent companies from expanding because, when combined with another, they own a large majority of the market?
Posted by FSU_Mark at 4:35 PM