Matt Gordon
Supporting Actor
- Joined
- Jun 21, 2001
- Messages
- 534
By allowing customers to take their numbers with them, we probably will see intensified price wars in the industry, which will further weaken the financial health of the industry. And, if the companies are financially weakened, they will be forced to cut back investments in network capacity, which will lead to deteriorated quality of service. So, yes, number portability will probably lead to lower prices, but, remember, you get what you pay for, and service quality will most likely get worse (and isn't it bad enough already?)That's a very respectable point, ToddR, but it could also reward carriers with better quality and service by bringing more customers in. Analysts in the Wall Street Journal on 6/09 said that Verizon Wireless (the nation's largest carrier) could actually gain market share because they are generally viewed as having the most extensive network and top-rated service (I have no idea where they get those figures). Also, T-Mobile is expected to aggressively pursue people who want to take their numbers with them.
So deregulation could lead to the best getting better and the worst getting worse. Which will lead to mergers and an even more extensive network for the bigger boys.