Final answer:
The deregulation of the U.S. telecommunications industry was enabled by new technology that allowed for non-wire-based phone calls. Benefits include more consumer choice and improved services, whereas drawbacks might involve increased monopolization and regulation challenges. Understanding corporate mergers, acquisitions, and antitrust policies is key to comprehending the competitive dynamics in deregulated industries.
Step-by-step explanation:
The deregulation of the U.S. telecommunications industry was made possible largely due to technological advancements such as microwave transmission, communications satellites, and other wireless technologies. The benefits of this deregulation include more consumer choice, cheaper long-distance calls, improved quality of phone service, and better data transmission. However, potential negatives of deregulation might be increased monopolization, lack of consumer regulations, decreased technological advancement, and increased cybercrime.
Corporate Merger and Acquisition
A corporate merger is when two companies combine to form a new entity, while an acquisition is when one company takes over another. The goal of antitrust policies is to prevent anti-competitive practices, protect consumers, and ensure a diversified marketplace. A four-firm concentration ratio measures the total market share of the four largest firms within an industry; a high measurement indicates less competition and potential for monopolistic markets.