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“An oligopoly is a market form in which a market or industry is dominated by a small number of sellers; oligopolists (Investopedia 2008).“ These types of firms are acutely aware of each other’s actions and are heavily involved in establishing strategy for future ventures. The four main players for wireless communications would be an example of an oligopoly. Currently, Verizon is considering the purchase of Alltel for approximately $27 billion. By reducing the competition within the industry, the consumer will benefit by stable pricing structures within the industry. However, Oligopolies by their very nature, may have a tendency to share restricted information between themselves to further market share. “This causes oligopolistic markets and industries to be at the highest risk for collusion Wikipedia (2008).”
The market structure discussed in this paragraph is the Monopoly or Monopolistic structure, sole sellers of products and services. The company identified with this type of market structure is Sirius XM Radio, formally Sirius radio and XM radio. The business of satellite radio became a monopoly on July 29, 2008 when the FCC approved by a 3-2 vote the merger of the two said companies. The companies voluntarily agreed to stipulations that include 8% channels for public interest and minority programming, 3year price cap, as well as A-La-Carte pricing available within 3 months of deal closure. Their pricing model includes a month to month fee/subscription for $12.95, one year subscription monthly rate of $11.87, two year subscription monthly rate of $11.33 and three year subscription monthly rate of $9.99. Along with the monthly rate will be one time activation fee for each receiver of $15.00 dollars.