Analysis of Wireless Prices Lower Despite Industry Consolidation, GAO Finds Article by Brad Reed - Assignment Example

The article states the names of the prestigious companies that utilized consolidation during the past years. It includes “Cingular and AT&T in 2004, Sprint and Nextel in 2005 and Verizon and Alltel in 2008” (Reed). Reed says that consolidation is advantageous for wireless networks. Just for example, when the AT&T and Verizon merged in 2006, they collectively have 51.5% of the total American wireless subscribers. By the year 2009, the percentage of subscribers steadily increased to 61.7%. But this is not always the case.

A six-percent declination of the market was experienced by Sprint even after the merge. Due to consolidations, large companies become stronger in the market while smaller wireless networks are affected disapprovingly. Reflection Reed’s statements are well-supported by relevant announcements of the Government Accountability Office or GAO. He is successful in giving statistics depicting the increase and decrease of wireless network companies’ economy. For instance, he quoted GAO’s statement that the prices of the wireless products are approximately 50% lesser than the prices of products 11 years ago.