Analysis of Internet backbone competition

by on August 2, 2005

Econ professor Marius Schwartz just wrote a short, yet incredibly useful analysis of competition in the Internet backbone space. You can find the AEI-Brookings publication here, but if you want the summary version it’s this: there is tons of competition and the SBC/AT&T merger won’t change that.

And here’s one bit you won’t want to miss regarding the Verizon merger:

Thus SBC/AT&T and Verizon/ MCI together would have less than 30% of Internet traffic. To put this in context, at the time of the Sprint merger, MCI by itself had a larger share–but still was unable to impose interconnection charges on fully eleven competitors!

Cross-posted from Sonia Says.

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Sonia Arrison / Sonia Arrison is an author and policy analyst who has studied the impact of new technologies on society for more than a decade. A Senior Fellow at the California-based Pacific Research Institute (PRI) and a columnist for TechNewsWorld, she is author of two previous books (Western Visions and Digital Dialog) as well as numerous PRI studies on technology issues. A frequent media contributor and guest, her work has appeared in many publications including CBS MarketWatch, CNN, Los Angeles Times, New York Times, Wall Street Journal, and USA Today. She was also the host of a radio show called "digital dialogue" on the Voice America network and has been a repeat guest on National Public Radio and CNN's Headline News.

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