Jump to ContentJump to Main Navigation
Media Ownership and Concentration in America$
Users without a subscription are not able to see the full content.

Eli Noam

Print publication date: 2009

Print ISBN-13: 9780195188523

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195188523.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 16 January 2021

Telecommunications Services and Equipment

Telecommunications Services and Equipment

(p.231) 11 Telecommunications Services and Equipment
Media Ownership and Concentration in America

Eli M. Noam

Oxford University Press

This chapter examines market concentration trends in the telecommunications industry in the United States. The overall concentration trend of the telecom sector has been strongly U-shaped; this concentration declined significantly in 1983 with the AT&T divestiture; a gradual decline occurred from 1984 to 1996, the multichannel phase of communications media; this was followed by a pronounced reconcentration. The chapter then turns to the equipment side of the sector. Traditionally, telecommunications equipment industries were divided into two categories based on the destination of their products: fairly simple consumer and office-oriented “customer premises equipment”, and carrier-oriented network equipment. As instability became part of the environment, telecom companies responded in three ways: by cutting costs and prices, by creating differentiated products and services, and by reducing competition and the commoditization that lowers profitability and future investments. The third response requires market power, which leads to consolidation of firms into oligopoly. This is a main driver of concentration trends in the telecommunications sector.

Keywords:   United States, market concentration, telecommunications industry, AT&T, telecommunications equipment, customer premises equipment, carrier-oriented network equipment, competition, oligopoly

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .