Globalization of wireless value system: from geographic to strategic advantages

Dan Steinbock

Telecommunications Policy, vol. 27, issue 3-4, 207-235

Abstract: This paper examines the globalization of the wireless value system, and the ensuing shift from geographic to strategic advantage. The evolution of the wireless industry has been shaped by the dynamics of innovation, market evolution and changing public policies. When these policies have matched or anticipated the environmental changes, they have facilitated the fortunes of the core clusters and the leading companies. Four kinds of regional advantages reflect successes and failures in these efforts (US, Western Europe, Nordic countries, and Japan). Towards the end of the 1990s, the Nordic model had won, but it was also being eclipsed with the 3G transition. With the convergence of mobility and the Internet, the industry is witnessing a growing thrust from geographic to strategic advantages. US-based IT leaders reign over software and chips. European-based mobile leaders dominate wireless innovation, particularly in Nordic countries. Large-country players in the leading OECD countries engage in imitation and differentiation. None match the Asian producers and their global cost strategies. Wireless competition is highly dynamic, allows no complacency, and, for good or bad, illustrates the fervor of rivalry in most technology-intensive, fast-cycle industries.

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