Monday, August 27, 2007 - The Progress & Freedom Foundation Blog

Mobile Markets: US v. Europe

In July, I mentioned the interesting comparison chart that Verizon's Link Hoewing put together comparing contracts, competition, coverage, prices, new services, and more in both the U.S. and European cellular markets.

If you're interested in this subject, there's a new report out by the American Consumer Institute entitled "Comparison of Structure, Conduct and Performance: U.S. versus Europe’s Wireless Markets." The report finds that:

* The U.S. wireless market offers more choice and is less concentrated than any Western country’s wireless market;
* U.S. consumers use an average of 800 wireless minutes per month, while most European consumers use less that 200 minutes per month;
* U.S. wireless prices are the lowest in the world, with the exception of Hong Kong; and
* The combination of higher usage at lower prices presents compelling evidence that the overall consumer welfare derived from wireless service is higher in the U.S. than internationally.

"In summary, a comparison of international statistics suggests that the U.S. wireless market, in fact, leads its European counterparts, and the U.S. wireless market, compared to Europe, appears to be more competitive and vibrant. The contention that concentration leads to higher prices, lower usage and decreasing consumer welfare does not appear to be a U.S. problem, and furthermore, the contention that the U.S. lags the European market and needs some regulatory remedy is without empirical merit."

Read the whole thing here.

posted by Adam Thierer @ 11:21 AM | Wireless