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Article #461

Re: NEWS: US edges towards mobile antitrust case

#461
From: SMS
Date: Wed, 08 Jul 2009 14:10
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Todd Allcock wrote:

> There are four national providers of wireless service.  We have more
> choice and selection in wireless than we do in breakfast cereals, and
> soft drinks.  When 12-packs of Coke and Pepsi sell for exactly the same
> $3.50 at the local grocer, that's the benefit of competition.

Except you can go to many different grocers for that soda, and pay a lot 
more or a lot less. I paid $2 for a 12 pack last week (had to buy six to 
get it at that price), and I could easily find a store that charged $5. 
And BTW, there are far more than four soft drink and four cereal 
manufacturers.

> When four
> wireless providers sell texts for the exact same $0.20 it's collusion? 

It's called "gentle collusion." It's like what the airlines do. They 
don't gather together to set fares and fees, they raise fares and fees 
and wait to see what the competition does. If the competition follows, 
then the increase sticks (like baggage fees). If the competition doesn't 
follow, the increase doesn't stick (like U.S. Air charging for soft drinks).

What's fun is the disruptive competitors like Southwest Airlines and 
RyanAir, MetroPCS and PagePlus, 365 soda, and Trader Joe's cereals.

Coke and Pepsi can't respond to a cane sugar soda (actually Pepsi is 
trying with Pepsi Throwback).
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From: SMS <scharf.steven@geemail.com>
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Subject: Re: NEWS: US edges towards mobile antitrust case
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Date: Wed, 08 Jul 2009 07:10:38 -0700