What is Market Structure

The United States’ wireless telephone industry has evolved from a minor segment of the communications industry to a major provider of voice, and increasingly data and video communication. The industry uses radiowaves to transmit signals, and radiowave spectrum is regulated by the federal government. Moreover, local transmission requires unobstructed antennae, which in rural and suburban areas has led to the construction of wireless towers. States and municipalities have sought to regulate the construction of such towers, citing issues of aesthetics and health. The development of the wireless industry has been constrained by such government regulation. This chapter discusses the impact of government on the market structure of the wireless industry.