Scale Economies in Cellular Telephony: Size Matters

R Dean Foreman and Edward Beauvais

Journal of Regulatory Economics, 1999, vol. 16, issue 3, 297-306

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. Copyright 1999 by Kluwer Academic Publishers

Date: 1999
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