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Scale Economies In Cellular Telephony: Size Matters

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Abstract

Strategic positioning and potential cost savings are popular explanations for growing consolidation in the wireless telephone industry. This research estimates economies of scale for a large panel of GTE Wireless cellular market areas. Contrary to previous findings, our results indicate scale economies exist throughout the system and provide a rationale for the industry trend of consolidation.

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Authors and Affiliations

  1. Government Affairs 600 Hidden Ridge, HQE01J22, Irving, TX, 75038 E-mail

    R. Dean Foreman & Edward Beauvais

Authors
  1. R. Dean Foreman
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  2. Edward Beauvais
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Foreman, R.D., Beauvais, E. Scale Economies In Cellular Telephony: Size Matters. Journal of Regulatory Economics 16, 297–306 (1999). https://doi.org/10.1023/A:1008131223498

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  • DOI: https://doi.org/10.1023/A:1008131223498

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