This website uses cookies to ensure you have the best experience. Learn more

Monopolies In The Market Place: Example Of The Telecommunication Industry

695 words - 3 pages

Federal Regulations on Trade Traditionally many utility industries have been comprised of monopolies. These natural monopolies exist for a number of reasons. Monopolies in the marketplace create great inefficiency, and thus are very undesirable. It is for that, and many other reasons that regulation was thought of as a solution to the monopoly problem. Regulation was not just used to overcome such great inefficiencies created in a monopolistic market, but was also used to supply consumers with necessary goods. A good example of this can be seen in the telecommunications industry. There is a lot of money to be made in long distance telecommunications, while supplying phone service to a small, very economically diverse, rural town on top of Mount Taikonduroga would never prove economical. Thus the local telecommunications service to the small rural town could not sustain itself. The costs to the firm would never be supported by the consumers in that area, and thus to encourage a firm to supply to the town the government must set up a regulatory practice that would ensure a firm to make a reasonable return on their investments. Thus regulation was found to be a solution to such problems. Going back o the example of the telecommunications industry, the huge stranded costs have already been realized and thus the major cost of supplying to the small rural town has already been satisfied. The MC of supplying to the town is rather small, and would supported by the consumer. Besides the fact that technology has come a long way and made many things more efficient. Thus, de-regulating the retail and generation of telecommunications electricity etc. would not lead to market failure. The industries would be able to support themselves. Federal regulations preempt local height limits The Federal Commissions Act and associated regulations preempt a city zoning ordinance limiting the height of radio broadcast towers, the New Hampshire Supreme Court ruled in Koor Communications v. City of Lebanon in December. Lebanon's zoning ordinance allows radio...

Find Another Essay On Monopolies in the Market Place: Example of the Telecommunication Industry

Technical Advancement in the Field of Telecommunication

3764 words - 15 pages Technical Advancement in the Field of Telecommunication The move into the Information Society is driven by the market for new information and communications technologies and services. Whilst the large number of technologies and services and their providers bring expectations of higher economic growth, there has been a growing concern about the social, ethical, cultural, political and economic aspects

The Example of Multinational Corporation Operation in a Foreign Market

2632 words - 11 pages out of the market. Consequently, a dominant firm might like to keep a recognizable opponent in the market than to face the unverifiable conclusion of the rival’s effort to get by in the market. (Gallini, 1984) According to Anand & Khanna (2000), chemicals, computers and electronics industries have to pay great importance towards licensing activity. Licensing contracts in the computer and electronic industry are more inclined to be marked with

Telecommunication in the Work Area

715 words - 3 pages The types of telecommunication that we utilize here at Johnson & Johnson Pharmaceutical are two distinct carriers that come into two different pads, ATT and SBC. Both are primary connectivity to the telecommunication industry here at J&J Pharmaceuticals. So if one goes down there is a back up, due to disaster recovery. Meaning both telecommunication act as primaries and as each other's back ups.The backbone of the structure is fairly new

Solar Energy's Place in the Power Industry

1308 words - 6 pages or sun set. The solar panels could also be charging large batteries that will be stored and used during the peak demand hours, but as of now there are no batteries on the market that can store enough energy that can disperse 10+MW to the system for 2 or more hours. Without an increase in battery storage, solar power cannot be relied on because when the power is needed most, solar power cannot come through. For example, Duke Energy Carolinas has

Solar Energy's Place in the Power Industry

1611 words - 6 pages to power companies fleet to help meet demand at peak times, but without advances in solar panel’s efficiency and in battery storage, solar power does not currently have a place located within the power industry. Works Cited "Atmospheric Effects." Terrestrial Solar Radiation. PVEducation.org. Web. 10 Apr 2014. . "Cleveland, TN." USA.com. USA.com. Web. 10 Apr

Effect of Monopolies on the Economy

866 words - 3 pages , government licenses, economies of scale, or network economies. A famous example of a monopoly would be AT&T which was the only option for telecommunications until it was broken up in 1982. Today monopolies are very rare in the United States. Besides public utility services it is very rare to find monopolies that exist. Public utility services can remain monopolies because it is hard to use less electricity, water, etc, so in those areas the

Country Overview of Telecommunication Industry

1633 words - 7 pages opened up to free competition. The two rulings also contribute to the growth of the country infrastructure. In the 1990’s enormous sums of money was spent by existing and new companies on technological developments in order to protect and grow market share.The telecom industry is experiencing an unprecedented upheaval brought on by overcapacity, weaker than expected growth in demand, competition, and uncertainty of far-reaching structural and

Real Estate Industry In The Rental Market

2192 words - 9 pages Real Estate Industry in the Rental Market Abstract “Real estate is land, all of the natural parts of land such as trees and water, and all permanently attached improvements such as fences and buildings. People use real estate for a wide variety of purposes, including retailing, offices, manufacturing, housing, ranching, farming, recreation, worship, and entertainment.” (Answers.com) In order to more specifically focus on a specific area of

Insurance in the US Industry Market Research

1266 words - 5 pages Allstate insurance is the second largest property and casualty insurance company by premiums in the United States. Allstate insurance handles about 12% of the U.S home and auto insurance market. (Allstate, 2014). Many of Allstate’s customers fall under what one could refer to as a traditional selection of insurance for automobiles. Recently, Allstate has noticed a major shortcoming in lifestyle insurance, which includes coverage for motorcycles

Market Failure of the Taxicab Industry

2614 words - 11 pages pollution becomes a serious issue. The potential negative effects of these situations make government regulation necessary. IV. Regulation failure: creation of monopolies Despite the sound rationale, outlined above, for strict regulation to help correct market failure in the taxicab industry, the market continues to be imperfect. Some regulations have helped correct the market, but other regulations, most notably entry restricts, have actually

Blockbuster's Place in the Current Movie Rental Market

1441 words - 6 pages technology; DVD's might be the next technology to be pushed down the market by a new product. Vulnerability to industry driving forces may be taken by other competitors instead of building prominent driving forces in Blockbuster. Our group has many recommendations for Blockbuster. We feel that blockbuster should continue on with its online services. They should keep running and adding promotions to gain new customers and keep existing

Similar Essays

The Attractiveness Of Telecommunication Industry In 1998

1156 words - 5 pages using porter’s five forces which determines the attractiveness of the industry. I will discuss what attracted Meteor into the industry; analyze Meteor strategies entering the market and what factors caused them to alter their strategies and finally how I envisage the telecommunication industry in five years time. The Irish telecommunication industry was developed by the direct involvement of the Irish government, which created a state owned

The Power And Benefits Of Monopolies In The Pharmaceutical Industry

2367 words - 9 pages Due to patents, Pfizer and other companies in the pharmaceutical industry are not always competing in a monopolist’s competition. When a business has a patent they are the only manufacturer who can produce the product until the product expires, so it is clear that the firm can act as a monopoly while in control of the patent. As a monopolistic company, the company has market power, giving it the capability to adjust the market price of a good

The "Sweet Spot" Of The Telecommunication Industry

1820 words - 7 pages close of 2001, both this giants showed revenues well over the $9 billion mark, and don't show any signs of slowing down (#7 & #8). In actuality, further expansion and profits seem inevitable as business ventures, such as the recent announcement of a merger between AT&T Broadband and Comcast. Other operators in the industry are doing well also, with revenues averaging $3 "“ 5 billion in 2001 (#9).Key Players

Analysis Of The Business Environment Of The Telecommunication Industry In India

1422 words - 6 pages the impact of New Economic Policy, 1991 on the Telecommunication (Voice) industry. However, as the major developments in the industry have taken place only from 1994, we have analysed the impact of National Telecom Policy, 1994 and New Telecom Policy, 1999 for our study. The purpose of this study is also to analyse the business environment of the industry, find out growth drivers for the industry, the market attractiveness for new entrants and