Declining first-mover advantage in mobile telecommunications markets

Nakil Sung

The Service Industries Journal, 2014, vol. 34, issue 2, 89-102

Abstract: First-mover advantage may be more remarkable in the inherently oligopolistic mobile telecommunications market. This study evaluates the impact of market experience and competition on market share and profitability in mobile markets. Specifically, the study estimates regression equations for market share and earnings before interest, tax, depreciation, and amortization (EBITDA) service margin as a proxy for profitability, relying on a panel of mobile network operator (MNO) data from 27 Organisation for Economic Co-operation and Development member states for the period 1998-2009. The empirical results demonstrate that market experience (relative time in the market) exerted a clearly positive effect on the market share and the EBITDA service margin for MNOs. On the other hand, this first-mover advantage declines over time with accumulated competition experience, especially in the latter half of the 2000s.

Date: 2014
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DOI: 10.1080/02642069.2013.763931

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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