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Mobile service innovation: A European failure

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  • Weber, Arnd
  • Haas, Michael
  • Scuka, Daniel
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    Abstract

    The continuing absence of innovation in Europe's mobile services industry is identified and characterised here, with such examples as mobile Internet and mobile music. Innovation failure is a critical factor leading to a lack of high-income jobs, network effects, and price reductions for data services. Most mobile service innovations have been made in Japan in 'clubs of operators' with their suppliers. Apple USA followed the same model of control with its iPhone. Conversely, a lack of this critical type of competition characterises European operators. Revenues per citizen are in some countries similar to those in Japan, but with handsets with less functions. Europe and all other regions face the challenge of competing with Japanese and US innovators. The lessons to be learned are (1) becoming aware of the situation, (2) allocating spectrum that covers a sufficient population size to allow technological competition, and (3) developing a strong customer orientation.

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    Bibliographic Info

    Article provided by Elsevier in its journal Telecommunications Policy.

    Volume (Year): 35 (2011)
    Issue (Month): 5 (June)
    Pages: 469-480

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    Handle: RePEc:eee:telpol:v:35:y:2011:i:5:p:469-480

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    Related research

    Keywords: Mobile telecommunications Standardisation Competition Innovation Service quality Spectrum regulation Network effects Convergence Internet Japan Europe;

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    Cited by:
    1. Nikou, Shahrokh & Bouwman, Harry, 2012. "Mobile service platform competition," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72515, International Telecommunications Society (ITS).
    2. Maaß, Frank & Schröder, Christian & Wolter, Hans-Jürgen, 2013. "Kleine und mittlere Unternehmen der Informations- und Kommunikationswirtschaft in Nordrhein-Westfalen," IfM-Materialien 224, Institut für Mittelstandsforschung (IfM) Bonn.
    3. Koeder, Marco Josef & Tanaka, Ema & Misawa, Kaori, 2012. "Mobile ecosystems in global transition: Driving factors of becoming a mobile ecosystem enabled. A comparison between the US and Japan," 19th ITS Biennial Conference, Bangkok 2012: Moving Forward with Future Technologies - Opening a Platform for All 72475, International Telecommunications Society (ITS).

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