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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