1、 1 An Economic Analysis of Mobile Wireless Competition in the United States1 Bryan Keating Compass Lexecon December 11,2023 1 I have been asked by CTIA to perform an economic analysis of pricing and performance in the mobile wireless industry in the United States.2 I.INTRODUCTION 1.This paper shows
2、that the wireless industry is dynamic,and mobile network operators(MNOs)and mobile virtual network operators(MVNOs)have been making substantial investments year over year in network improvements and offering increasingly attractive and high-quality services at consistently declining prices,all of wh
3、ich generate significant benefits for U.S.consumers.The paper compares the state of the industry today to the state of the industry immediately following the passage of the Telecommunications Act of 1996,finding the industry has evolved substantially since that time.2.Evaluating these data,the paper
4、 documents the extent of competition in the U.S.mobile wireless industry today.Economists evaluate competition by assessing a variety of economic indicators,including output,quality,price and the availability of different options to consumers.Assessing these metrics,I find the wireless industry to b
5、e highly competitive,indicating that utility regulation like that found in Title II of the Communications Act is both unnecessary and likely to be a harmful deterrent to future investment and industry performance due to imposed costs and diverted resources.3.Key findings include:1)U.S.mobile wireles
6、s providers invested more$364 billion in nominal dollars($434 billion in December 2022 dollars)between 2010 and 2022 to improve networks.2)Capital investment in cell site densification and coverage increases network capacity and improves network quality.This led to a 64 percent increase in the numbe