Resale and the Growth of Competition in Wireless Telephony

Abstract

The closing decade of the 20^th century has been marked by profound technological changes. Among these, it is difficult to imagine one more quickly embraced by the marketplace than wireless telecommunications. What was, a decade ago, merely a novelty or an indulgence is now a central component of personal and professional communications. Although barely in its adolescence, wireless telephony has already left an indelible mark on both American society and commerce. To accurately predict the magnitude of the wireless contribution to future economic welfare is impossible, yet the growth of this contribution is virtually indisputable. Wireless services that are today barely imaginable are likely to pervade the telecommunications marketplace of the future. Moreover, the costs of providing the wireless services which millions of customers currently enjoy are likely to be driven ever lower by technological advance and emerging competition. Wireless services that are now pervasive may, in the foreseeable future, be universal.

The authors gratefully acknowledge the helpful comments of Andy Cohen, Raidza Wick, David Tyler and Eric Schweikert. The financial support of America One is also appreciated. The views expressed herein are solely those of the authors who are responsible for any remaining errors.