When fewer companies dominate one industry, it’s not usually good news for consumers. But that hasn’t been the case in wireless, according to a new government report.
Despite the fact that consolidation in the industry has made it tough for smaller carriers to compete, the Government Accountability Office says consumers have been able to benefit from falling prices. There’s been enough cutthroat competition among the Big 4 telcos – Verizon, AT&T, Sprint and T-Mobile – the report says, that rates have fallen to some of their lowest levels ever. In addition, consolidation among those four companies has forced them to become more efficient and improve coverage, another win for the consumer.
The report says that average prices for wireless services are now half what they were just 10 years ago. During that time period, the number of wireless subs in the U.S. has gone from 3.5 million to a whopping 285 million.
Obviously, this report is something the wireless companies can pin to their sleeves, especially considering how consumer groups and lawmakers have been hammering them over a lack of competition. But for those that champion the little guy, they might find solace in this report since it shows that four companies are clearly dominant.
The report also comes at a time when Net neutrality is under the microscope in Washington, D.C. Many worry that the large service providers will negotiate deals to gain too much control over the open Internet.
