Market Structure Essay

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Market Structures University of Phoenix Monopoly Verizon Communications offers wireless telephone, wire line and data transmission services which includes media broadcasting and internet access via FiOS and V Cast services. The company consists of Verizon Telecom, Verizon Business, and Verizon Wireless. Verizon Telecom is considered as a pure monopoly industry as it provides local telephone services to certain areas and locations. A single seller is a pure, or absolute, monopoly industry in which a single firm is the sole producer of a specific good and the sole supplier of a service, the firm and the industry are synonyms. Here, Verizon Telecom is characterized as a single seller pure monopoly industry because it offers an array of telephone services to consumers, small customers and carriers. Verizon provides broadband with download speeds up to 50 Mbps, video on demand, and digital and high definition television through its branded name FiOS. As a telecommunication industry, Verizon is heavily marketed in the United States, where its communication services are subject to regulation at the federal level by the FCC and in certain states by public utilities commissions (PUCs). The FCC regulates the acquisition and sale of wireless operations and wireless spectrum holdings, operation, construction, licensing, while the Telecommunications Act of 1996 was designed to eliminate legal and regulatory barriers to entry into local and long distance communications markets and to promote competition. Additionally, companies were obligated to permit resale of specified local service at wholesale rate, negotiate interconnection agreements, provide nondiscriminatory access to unbundled network elements and allow co-locations of interconnection equipment by competitors. A significant change is most likely to have a major impact on industry or company in such a heavy

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