The telecom industry in the country of New Taria is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the telecom industry, the
A. threat of substitutes is most likely high.
B. threat of new entrants is most likely low.
C. bargaining power of buyers is most likely high.
D. entry barriers are most likely nonexistent.
Answer: threat of new entrants is most likely low