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Airlines are very different from carriers. The market for air travel is dominated by frequent one-off transactions (with consumers often using multiple airlines
by trythis 16y ago
Airlines are very different from carriers. The market for air travel is dominated by frequent one-off transactions (with consumers often using multiple airlines for a single trip), and boasts several good ways to compare availability and cost. A new entrant can start off with a few routes, build a good reputation, and grow out from there.
New entrants in the telecom market are considerably disadvantaged by comparison. Consumers in this market make long-term purchasing decisions, often driven by contract pricing,and there remain no good, well known ways of comparing providers. The situation is even worse if you're a new wireless carrier, since coverage is crucial and the market is pointlessly segmented by phone tech.
I'm not saying we couldn't benefit from deregulation in some aspects of this market, but the devil is very much in the details, and simply pointing out that "deregulation" helped improve a market with high capital requirements for entry isn't saying much.