The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications

Harald Gruber and Frank Verboven

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: We analyze the effect of government policies on the evolution of global mobile telecommunications markets during 1981-1997. We obtain the following findings. (i) Countries that issue first licenses at later dates converge relatively slowly to early moving countries. (ii) The introduction of competition has a significant impact on the diffusion, especially after capacity expanded (digital phase). (iii) The timing at which second licenses are issued is important. Sequential entry is preceded by pre-emptive behavior and has a stronger impact than simultaneous entry. (iv) For the analogue technology, setting a single technological standard speeds up the diffusion. The results can be explained by structural characteristics of the industry, such as capacity constraints, consumer switching costs and network externalities.

Keywords: Technology diffusion; Entry regulation; Standards and competing systems; Capacity constraints; Consumer switching costs; Network externalities; Pre-emption; Mobile telecommunications (search for similar items in EconPapers)
JEL-codes: L1 L86 O3 (search for similar items in EconPapers)
Pages: 58 pages
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The evolution of markets under entry and standards regulation -- the case of global mobile telecommunications (2001)
Working Paper: The Evolution of Markets Under Entry and Standards Regulation - The Case of Global Mobile Telecommunications (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:1999038

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