1. ET&T is one of five major wireless communications service providers in the U.S. The number of subscribers for each firm is in the table below:

Company

Horizon

ET&T

T-Cell

Spirit

US Mobile

Subscribers (millions)

140

130

65

60

1. 5Compute ET&T market's share in this market.
2. Compute the HHI (measure of market concentration) for this market.
3. In October 2021, ET&T offers $39 billion in a proposed buyout of T-Cell. Assuming subscribers (except T-Cell customers who move to ET&T) do not change their service providers, what would be the HHI of this market after the proposed merger?
4. In January of 2022, ET&T announces a $85 billion merger with Lime Warner. Since DalekTV is owned by ET&T and Lime Warner is the owner of BNN and GBO among other movie and TV channels, this is considered to be a vertical merger. Name one potential efficiency gain that could result from this merger. What effect would this have on consumers?
5. Name one potential anti-competitive concern with this merger. What effect would this have on consumers?