The Network Investment Economics of the Mobile Wireless Industry

Hemant K. Sabat ()
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Hemant K. Sabat: Perot Systems Corporation

Information Systems Frontiers, 2005, vol. 7, issue 2, No 7, 187-206

Abstract: Abstract This paper provides a theory to account for what drives the network investments in the mobile wireless industry. In the mobile wireless industry, investments made by network operators are one of the key industry and business drivers. Of these cost drivers, the most influential on the industry’s dynamics are the capital investments, which includes network infrastructure investments. This article traces the industry’s network investments drivers, key economic characteristics and service providers’ offerings along the industry’s three chronological phases of evolution. The industry’s technology investment and subscriber penetration life cycles have been discovered and employed to explain the current industry dynamics. The industry’s stakeholders who would benefit from this paper include researchers, managers, investors and regulators. With an understanding of these cycles, the industry’s stakeholders will be better equipped to manage uncertainties, which, in turn, will lead to the emergence of a stable industry.

Keywords: network investment economics; spectrum investment economics; technology investment life cycle; subscriber penetration life cycle; network migration; backhaul; first/second/third generation wireless technologies (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (7)

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DOI: 10.1007/s10796-005-1487-y

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