When size is not important any more

Wireless phone companies, especially with number portability, sell a product that is less and less different, that is to say, a commodity. That is the reason scale economies play a very important role in this market. Given that it is not possible to make a large margin on the service that they offer, companies must focus their strategies on saving costs. Moreover, the more clients a company has, the more saving it can get thanks to the sharing of fixed costs, such as the network use, administration, marketing or advertisements. Size also affects other important aspects, like the capacity to negotiate with technology providers and financial institutions. Then, it is not surprising that only companies from the wireless phone sector participated in the bid for AT&T Wireless. Their aim is to add new users to their client base as quickly as possible.