Introduction Takeovers, mergers and acquisitions and buy-outs have become common in various industries since late twentieth century, leading to a huge wave of company consolidation in industries, like automobiles (Daimler-Chrysler), media (Disney and ABC) and petroleum (Exxon and Mobil Oil) (Warf, 2003). The phenomenon of mergers has not passed by the industry of the mobile telecommunications in neither the US nor EU. While colossal number of minor mergers were observed, megamergers (e.g. Vodafone and Mannesmann, Bell Atlantic and GTE, AT&T and Bell South Corp.) played a huge role in the development of the industry. The adopted strategy of mergers and technological development, shaped telecommunications industry as we know it nowadays (Lucky, 2006). Lucky also implies, that telecommunications provided technological foundations for societal communication and continue modifying social relationships. Furthermore, author mentions that, besides playing a core role in cultural conglomeration, …show more content…
Established in 2000, Verizon has undergone several huge mergers in last 10 years (MCI, Alltel, AOL), which helped to establish itself as one of the market leaders in the US, with 18% market share (Euromonitor International, 2016). With the development of the technologies Wireless segment of Verizon became its main operating unit. Results of mergers on Wireless segment was more than four times increase in retail customer base, from 29.4 million to 114.243 million (Verizon, 2001,2016). Naturally Wireless segment’s total costs and revenues grew with segment becoming bigger every year. To understand the core of the development of Wireless segment, this research paper will look how fixed costs per retail customer changed during last 16 years, and possible presence of the phenomenon of economies of scale. This brings us to the following central research