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Title
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The Evolution of markets under entry and standards regulation: the case of global mobile telecommunication
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Author
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Abstract
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| We analyze the effect of government policies on the evolution of global mobile telecommunications markets during 1981-1997. We obtain the following findings. (i) Countries that issue first licenses at later dates converge relatively slowly to early moving countries. (ii) The introduction of competition has a significant impact on the diffusion, especially after capacity expanded (digital phase). (iii) The timing at which second licenses are issued is important. Sequential entry is preceded by pre-emptive behavior and has a stronger impact than simultaneous entry. (iv) For the analogue technology, setting a single technological standard speeds up the diffusion. The results can be explained by structural characteristics of the industry, such as capacity constraints, consumer switching costs and network externalities. |
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Language
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English
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Source (series)
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Research paper / UFSIA, Faculty of Applied Economics ; 1999:038
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Publication
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Antwerpen
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1999
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Volume/pages
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56 p.
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Full text (open access)
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