Gurley argues oligopolistic carrier consolidation reduces innovation and makes ventures targeting carriers difficult to fund.
“It had already become very difficult for us to seed ventures where the primary customer was the carrier”
Gurley says carrier consolidation from four to three increases oligopoly power and reduces venture opportunities.
“Having more oligopic behavior within that industry is gonna from my perspective lead to less innovation not more.”
Gurley says Visa and Mastercard have the highest operating margins in North American markets.
“And there's another fact that you should know in North America, which is Visa and Mastercard have the two highest operating margin percentages in our markets total.”