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

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  • Funk, Jefrey L

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.

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  • Funk, Jefrey L, 1998. "Competition between regional standards and the success and failure of firms in the world-wide mobile communication market," Telecommunications Policy, Elsevier, vol. 22(4-5), pages 419-441, May.
    • Handle: RePEc:eee:telpol:v:22:y:1998:i:4-5:p:419-441
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    1. El-Moghazi, Mohamed & Whalley, Jason & Irvine, James, 2019. "Technology neutrality: Exploring the interaction between International Mobile Telecommunication and national spectrum management policies," Telecommunications Policy, Elsevier, vol. 43(6), pages 531-548.
    2. El-Moghazi, Mohamed & Whalley, Jason & Irvine, James, 2015. "Technology Neutrality: Interaction between International Mobile Telecommunication and National Spectrum Management Policies," 26th European Regional ITS Conference, Madrid 2015 127135, International Telecommunications Society (ITS).
    3. van de Kaa, Geerten & van Ek, Martijn & Kamp, Linda M. & Rezaei, Jafar, 2020. "Wind turbine technology battles: Gearbox versus direct drive - opening up the black box of technology characteristics," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    4. den Hartigh, E. & Langerak, F. & Commandeur, H.R., 2000. "A Managerial Perspective on the Logic of Increasing Returns," ERIM Report Series Research in Management ERS-2000-48-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Geerten Van de Kaa & Daniel Scholten & Jafar Rezaei & Christine Milchram, 2017. "The Battle between Battery and Fuel Cell Powered Electric Vehicles: A BWM Approach," Energies, MDPI, vol. 10(11), pages 1-13, October.
    6. G. Kaa & M. J. Greeven, 2017. "Mobile telecommunication standardization in Japan, China, the United States, and Europe: a comparison of regulatory and industrial regimes," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 65(1), pages 181-192, May.
    7. Shim, Yongwoon & Lee, Heejin & Fomin, Vladislav, 2019. "What benefits couldn't ‘Joyn’ enjoy?," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 125-134.
    8. Funk, Jeffrey L., 2003. "Standards, dominant designs and preferential acquisition of complementary assets through slight information advantages," Research Policy, Elsevier, vol. 32(8), pages 1325-1341, September.
    9. Gao, Xudong, 2014. "A latecomer's strategy to promote a technology standard: The case of Datang and TD-SCDMA," Research Policy, Elsevier, vol. 43(3), pages 597-607.
    10. Gao, Xudong & Liu, Jianxin, 2012. "Reprint of: Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(10), pages 817-831.
    11. Casey, Thomas R. & Töyli, Juuso, 2012. "Mobile voice diffusion and service competition: A system dynamic analysis of regulatory policy," Telecommunications Policy, Elsevier, vol. 36(3), pages 162-174.
    12. Medeisis, Arturas & Fomin, Vladislav & Webb, William, 2022. "Untangling the paradox of Licensed Shared Access: Need for regulatory refocus," Telecommunications Policy, Elsevier, vol. 46(8).
    13. Patrice Geoffron, 2001. "Le choc de l’UMTS sur la « corporate governance » des firmes européennes," Revue d'Économie Financière, Programme National Persée, vol. 63(3), pages 231-249.
    14. Gao, Xudong & Liu, Jianxin, 2012. "Catching up through the development of technology standard: The case of TD-SCDMA in China," Telecommunications Policy, Elsevier, vol. 36(7), pages 531-545.
    15. Giachetti, Claudio & Marchi, Gianluca, 2017. "Successive changes in leadership in the worldwide mobile phone industry: The role of windows of opportunity and firms’ competitive action," Research Policy, Elsevier, vol. 46(2), pages 352-364.
    16. Bonani, Michela, 2023. "Essays on innovation, cooperation, and competition under standardization," Other publications TiSEM 1c87d7fc-2c24-430a-9d4e-1, Tilburg University, School of Economics and Management.
    17. Silke van der Burg & Maarten F. M. Jurg & Flore M. Tadema & Linda M. Kamp & Geerten van de Kaa, 2022. "Dominant Designs for Wings of Airborne Wind Energy Systems," Energies, MDPI, vol. 15(19), pages 1-11, October.

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