Gurley says carrier consolidation from four to three increases market power and makes venture funding harder.
“It had already become very difficult for us to seed ventures where the primary customer was the carrier And so now to have three instead of four, you just increase the market power of those of those players.”
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 notes telecom market share consolidated from 48% to 85% after 1996 Telecommunications Act.
“In 1996, the top four had 48 market share. Four, five years later, after this heralded legislation, they're up to 85%. That didn't work. Let's check-in on the second one. Were they promoting innovation?”
Gurley shows Telecom Act of 1996 increased top four market share from 48% to 85%, opposite of stated goal.
“In 1996, the top four had 48 market share. Four, five years later, after this heralded legislation, they're up to 85%. That didn't work.”
Gurley shows telecom regulation killed innovation: VC investment dropped from 15% of total to below 1% in ten years.
“This used to be 15% of what VCs did. Within ten years, it had gone below 1%, and a year later, the MVCA stopped tracking it.”
Gurley says telecom regulatory capture equals or exceeds health care and finance levels.
“there are many I mean, first of all, the the the telecom space is probably equal to health care and finance in terms of regulatory capture.”
Gurley explains telecoms passed state laws preventing cities from competing despite receiving pole rights from those cities.
“And they were able to pass laws that said cities can't compete with them even though they're getting their poll rights from the the cities themselves.”