Dynamic Simulation for Government Policy Effects of the Mobile Telecom Industry in Taiwan

Chih-Tung Hsiao, Pao-Long Chang and Shu-Ping Ho ()
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Chih-Tung Hsiao: Department of Economics, Tunghai University, Taiwan
Pao-Long Chang: Department of Business Administration, Feng Chia University, Taiwan
Shu-Ping Ho: Ph.D. Program in Business, Feng Chia University and Department of Information Management, Wu Feng Institute of Technology, Taiwan

Journal of Economics and Management, 2010, vol. 6, issue 2, 175-202

Abstract: The applying, cancelling and changing of the radio channel licenses and the radio base station establishment need to be managed by the government because radio channel has scarce characteristic of resource. In order to carry out "Mobil Taiwan" plan and telecom liberalization, Taiwan official opened the business licenses of the third generation (3G) mobile phone in 2002 and the business licenses of the fourth generation (4G) WiMAX in 2007. The telecom market of mobile phone leads to a diversified service circumstance. Radio base station is the foundation of communication quality for the mobile phone. In order to shoot for mobile phone customers, all private enterprises apply and set up mobile base station, and then causes radio base station number to increase fast in Taiwan. Furthermore, being afraid of the radio wave the populace protest the radio base stations (BTS). The results not only made mobile phone operators hard to build and maintenance BTS, but also made the network communication quality attenuation. This paper utilizes the system dynamics to study the causality among the franchise operation license, base station number, communication quality, customer and the other factors, and makes relevant policy simulation.

Keywords: system dynamics; mobile telecom industry; dynamic simulation; policy analysis (search for similar items in EconPapers)
JEL-codes: L53 L88 O25 O38 (search for similar items in EconPapers)
Date: 2010
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