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Competition between regional standards and the success and failure of firms in the world-wide mobile communication market

Jefrey L Funk

Telecommunications Policy, 1998, vol. 22, issue 4-5, 419-441

Abstract: This paper describes the evolution of competition in the world-wide mobile communication market. Most firms have succeeded with products (infrastructure and phones) and phone services that are based on domestic standards, while relatively few firms (Ericsson, Motorola, and Nokia) have succeeded in the development of infrastructure and phones that are based on non-domestic standards. The lack of firms which have succeeded in non-domestic standards means that firms are given a significant competitive advantage when their countries create a system which eventually becomes a world-wide standard. Similar to other examples described in the industrial standards literature, the systems that have become world-wide mobile communication standards were able to quickly achieve a large installed base. These large installed bases were achieved through the early start of services, low service and handset charges, and the creation of an open standard both in terms of content and the standard-setting process. At the end of the paper, these conclusions are used to speculate about third generation systems.

Date: 1998
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Citations: View citations in EconPapers (17)

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