ICYMI – Denial: A River in Europe?
Another good piece today, this one in the Wall Street Journal, pointing to the obtuseness of those who continue to suggest the U.S. regulate spectrum a la Europe, while ignoring: 1) skyrocketing investment in the U.S.; and 2) the state of the European market, which is enervated by comparison. The entire piece is well worth your attention. Here’s just a tidbit:
On average, American consumers use five times as many voice minutes and consume twice as much data as Europeans. Connection speeds average about 75% faster in the U.S. than in Europe, where fewer than 2% of consumers subscribe to 4G services. This trans-Atlantic gap could easily widen. GSMA says U.S. wireless investment (much of it in added 4G capacity) has climbed by about two-thirds since 2007, while investment in Europe has actually declined. Consider, too, that T-Mobile, the undercapitalized subsidiary of Deutsche Telekom, has been invigorated by its recent merger with smaller, growth-driven MetroPC.
We’ve been saying similar things for a while – (Richard did a great job on the subject here), but the regulatory impulse, it seems, cannot be squelched by facts. What could be keeping people in denial?
Probably the same as always a combination of myopia, or at least selective vision (seeing market share numbers and nothing else) and, of course, ideology.