Coevolution of policy and strategy in the development of the mobile telecommunications industry in Africa

Mohammad Jahanbakht and Romel Mostafa

Telecommunications Policy, 2020, vol. 44, issue 4

Abstract: This paper explores how regulatory policy and firm strategy have shaped the development of the mobile telecommunications industry across Africa to date. Our historical analysis shows that during the industry's formative years, firms had different strategies for developing African markets in a relatively lax regulatory environment, with some local firms leading the way in generating innovations for adapting to inherent market and institutional challenges as well as in expanding their operations to multiple countries across Africa. While many firms exited over time, some, including a few multinationals, reoriented their strategy from targeting high-income consumers to serving the masses, and the industry benefited from the widespread diffusion of innovations, the establishment of allied industries, and low prices of handsets. However, as the industry matured, competition became mostly price-based, leading to consolidation. Authorities responded by increasing monitoring activities, taking a more “hands-on” regulatory approach. This study demonstrates that both policy and strategy coevolved in a path-dependent way as the industry gradually transitioned from the introductory phase into the growth and maturity phases. It also provides new insight into the development of the African mobile telecommunications industry, and extends and bridges the literatures on telecommunications policy and strategy, which evolved in insolation.

Keywords: Africa; Industrial evolution; Mobile telecommunications; Policy; Strategy (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.telpol.2019.101906

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