IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v36y2012i3p162-174.html
   My bibliography  Save this article

Mobile voice diffusion and service competition: A system dynamic analysis of regulatory policy

Author

Listed:
  • Casey, Thomas R.
  • Töyli, Juuso

Abstract

Dynamic behavior in mobile telecommunications markets is often the result of interactions between market actors. As the structure and dynamic complexity of such interactions tend to be difficult to identify, it is challenging for regulators to anticipate the effects of their policy decisions. This article uses system dynamics to evaluate the effect of technology harmonization and mobile number portability policies on mobile voice diffusion and service competition. This is realized by first modeling the endogenous feedback structure resulting in dynamic behavior in the mobile telecommunications market and then by configuring the model for retrospective simulations of the Finnish market. Based on the retrospective simulations, the effect of technology harmonization and mobile number portability policy decisions is analyzed and the usefulness of system dynamics is demonstrated.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:telpol:v:36:y:2012:i:3:p:162-174
    DOI: 10.1016/j.telpol.2011.07.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596111001315
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2011.07.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Madden, Gary & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," Telecommunications Policy, Elsevier, vol. 28(2), pages 133-144, March.
    2. Littlechild, S.C., 0. "Mobile termination charges: Calling Party Pays versus Receiving Party Pays," Telecommunications Policy, Elsevier, vol. 30(5-6), pages 242-277, June.
    3. Pagani, Margherita & Fine, Charles H., 2008. "Value network dynamics in 3G-4G wireless communications: A systems thinking approach to strategic value assessment," Journal of Business Research, Elsevier, vol. 61(11), pages 1102-1112, November.
    4. Albon, Rob & York, Richard, 2006. "Mobile termination: Market power, externalities and their policy implications," Telecommunications Policy, Elsevier, vol. 30(7), pages 368-384, August.
    5. Howell, Bronwyn & Meade, Richard & O'Connor, Seini, 2010. "Structural separation versus vertical integration: Lessons for telecommunications from electricity reforms," Telecommunications Policy, Elsevier, vol. 34(7), pages 392-403, August.
    6. 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.
    7. Allen, David, 1988. "New telecommunications services : Network externalities and critical mass," Telecommunications Policy, Elsevier, vol. 12(3), pages 257-271, September.
    8. Geoffrey G. Parker & Marshall W. Van Alstyne, 2005. "Two-Sided Network Effects: A Theory of Information Product Design," Management Science, INFORMS, vol. 51(10), pages 1494-1504, October.
    9. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    10. Buehler, Stefan & Dewenter, Ralf & Haucap, Justus, 2006. "Mobile number portability in Europe," Telecommunications Policy, Elsevier, vol. 30(7), pages 385-399, August.
    11. Andrew, T. N. & Petkov, D., 0. "The need for a systems thinking approach to the planning of rural telecommunications infrastructure," Telecommunications Policy, Elsevier, vol. 27(1-2), pages 75-93, February.
    12. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, vol. 30(1), pages 46-63, February.
    13. Tookey, Andrew & Whalley, Jason & Howick, Susan, 0. "Broadband diffusion in remote and rural Scotland," Telecommunications Policy, Elsevier, vol. 30(8-9), pages 481-495, September.
    14. Jeffrey L. Funk, 1998. "The Competition between Regional Standards and the Success and Failure of Firms in the World-Wide Mobile Communication Market," Kobe Economic & Business Review, Research Institute for Economics & Business Administration, Kobe University, vol. 42, pages 137-161, February.
    15. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    16. Gandal, Neil & Salant, David & Waverman, Leonard, 0. "Standards in wireless telephone networks," Telecommunications Policy, Elsevier, vol. 27(5-6), pages 325-332, June.
    17. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    18. Steinbock, Dan, 0. "Globalization of wireless value system: from geographic to strategic advantages," Telecommunications Policy, Elsevier, vol. 27(3-4), pages 207-235, April.
    19. Fransman,Martin, 2010. "The New ICT Ecosystem," Cambridge Books, Cambridge University Press, number 9780521171205.
    20. Jang, Show-Ling & Dai, Shau-Chi & Sung, Simona, 2005. "The pattern and externality effect of diffusion of mobile telecommunications: the case of the OECD and Taiwan," Information Economics and Policy, Elsevier, vol. 17(2), pages 133-148, March.
    21. John DAVIES & Bronwyn HOWELL & Victoria MABIN, 2008. "Telecommunications Regulation, Regulatory Behavior and its Impact A Systems View," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(70), pages 145-168, 2nd quart.
    22. Hemant K. Sabat, 2005. "The Network Investment Economics of the Mobile Wireless Industry," Information Systems Frontiers, Springer, vol. 7(2), pages 187-206, May.
    23. Tallberg, Mathias & Hämmäinen, Heikki & Töyli, Juuso & Kamppari, Sauli & Kivi, Antero, 0. "Impacts of handset bundling on mobile data usage: The case of Finland," Telecommunications Policy, Elsevier, vol. 31(10-11), pages 648-659, November.
    24. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    25. Fransman,Martin, 2010. "The New ICT Ecosystem," Cambridge Books, Cambridge University Press, number 9780521191319.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gupta, Ruchita & Jain, Karuna, 2016. "Competition effect of a new mobile technology on an incumbent technology: An Indian case study," Telecommunications Policy, Elsevier, vol. 40(4), pages 332-342.
    2. Yunna, Wu & Kaifeng, Chen & Yisheng, Yang & Tiantian, Feng, 2015. "A system dynamics analysis of technology, cost and policy that affect the market competition of shale gas in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 235-243.
    3. Benseny, Jaume & Finley, Benjamin & Hämmäinen, Heikki, 2016. "Bottleneck Analysis of the Mobile Internet Diffusion in Emerging Markets," 27th European Regional ITS Conference, Cambridge (UK) 2016 148658, International Telecommunications Society (ITS).
    4. Vincenzo Vignieri, 2021. "Crowdsourcing as a mode of open innovation: Exploring drivers of success of a multisided platform through system dynamics modelling," Systems Research and Behavioral Science, Wiley Blackwell, vol. 38(1), pages 108-124, January.
    5. Fangzheng Li & Shasha Lu & Yinan Sun & Xiong Li & Benye Xi & Weiqi Liu, 2015. "Integrated Evaluation and Scenario Simulation for Forest Ecological Security of Beijing Based on System Dynamics Model," Sustainability, MDPI, vol. 7(10), pages 1-29, October.
    6. Dutta, Amitava & Puvvala, Abhinay & Roy, Rahul & Seetharaman, Priya, 2017. "Technology diffusion: Shift happens — The case of iOS and Android handsets," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 28-43.
    7. Aslan, Fatma & Haouel, Chourouk & Nemeslaki, Andras & Somogyi, Robert, 2021. "Direct network externalities and dynamics of two-sided platforms," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238006, International Telecommunications Society (ITS).
    8. Ruutu, Sampsa & Casey, Thomas & Kotovirta, Ville, 2017. "Development and competition of digital service platforms: A system dynamics approach," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 119-130.
    9. Arturo Basaure & Varadharajan Sridhar & Heikki Hämmäinen, 2016. "Adoption of dynamic spectrum access technologies: a system dynamics approach," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 63(2), pages 169-190, October.
    10. Shouheng Sun, 2021. "How Does the Collaborative Economy Advance Better Product Lifetimes? A Case Study of Free-Floating Bike Sharing," Sustainability, MDPI, vol. 13(3), pages 1-22, January.
    11. Cadman, Richard & Curram, Stephan & Exelby, David, 2021. "The Determinants of Investment in Very High Capacity Networks: A System Dynamics Approach," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238013, International Telecommunications Society (ITS).
    12. Song, Hee Seok & Kim, Taewan & Kim, Taehan, 2017. "The impact of spectrum policies on the secondary spectrum market: A system dynamics approach," Telecommunications Policy, Elsevier, vol. 41(5), pages 460-472.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arturo Basaure & Varadharajan Sridhar & Heikki Hämmäinen, 2016. "Adoption of dynamic spectrum access technologies: a system dynamics approach," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 63(2), pages 169-190, October.
    2. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    3. Zaber, Moinul & Sirbu, Marvin, 2012. "Impact of spectrum management policy on the penetration of 3G technology," Telecommunications Policy, Elsevier, vol. 36(9), pages 762-782.
    4. Evens, Tom, 2010. "Challenging content exclusivity in network industries: the case of digital broadcasting," 21st European Regional ITS Conference, Copenhagen 2010: Telecommunications at new crossroads - Changing value configurations, user roles, and regulation 12, International Telecommunications Society (ITS).
    5. Bauer, Johannes M., 2014. "Platforms, systems competition, and innovation: Reassessing the foundations of communications policy," Telecommunications Policy, Elsevier, vol. 38(8), pages 662-673.
    6. Barman, Hemanta & Dutta, Mrinal Kanti & Nath, Hiranya K., 2018. "The telecommunications divide among Indian states," Telecommunications Policy, Elsevier, vol. 42(7), pages 530-551.
    7. Krancke, Jan & Vidal, Miguel & Fier, Andreas, 2012. "Changing the rules: Applying a more economic approach to dynamic telecom markets," 23rd European Regional ITS Conference, Vienna 2012 66976, International Telecommunications Society (ITS).
    8. Navid Ghaffarzadegan & Richard C. Larson, 2018. "SD meets OR: a new synergy to address policy problems," System Dynamics Review, System Dynamics Society, vol. 34(1-2), pages 327-353, January.
    9. Georgiadis, Patroklos & Athanasiou, Efstratios, 2010. "The impact of two-product joint lifecycles on capacity planning of remanufacturing networks," European Journal of Operational Research, Elsevier, vol. 202(2), pages 420-433, April.
    10. Reinhilde Veugelers, 2018. "Eco-systems for young digital innovators," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1449-1465, December.
    11. John Sterman, 2014. "Interactive web-based simulations for strategy and sustainability: The MIT Sloan LearningEdge management flight simulators, Part I," System Dynamics Review, System Dynamics Society, vol. 30(1-2), pages 89-121, January.
    12. Grove, Nico & Baumann, Oliver, 2012. "Complexity in the telecommunications industry: When integrating infrastructure and services backfires," Telecommunications Policy, Elsevier, vol. 36(1), pages 40-50.
    13. Paich, Mark. & Sterman, John., 1992. "Boom, bust and failures to learn in experimental markets," Working papers 3441-92., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    14. Heinz, B. & Graeber, M. & Praktiknjo, A.J., 2013. "The diffusion process of stationary fuel cells in a two-sided market economy," Energy Policy, Elsevier, vol. 61(C), pages 1556-1567.
    15. John D. Sterman & Rebecca Henderson & Eric D. Beinhocker & Lee I. Newman, 2007. "Getting Big Too Fast: Strategic Dynamics with Increasing Returns and Bounded Rationality," Management Science, INFORMS, vol. 53(4), pages 683-696, April.
    16. William Rand & Roland T. Rust & Min Kim, 2018. "Complex systems: marketing’s new frontier," AMS Review, Springer;Academy of Marketing Science, vol. 8(3), pages 111-127, December.
    17. 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.
    18. Nelson P. Repenning, 2002. "A Simulation-Based Approach to Understanding the Dynamics of Innovation Implementation," Organization Science, INFORMS, vol. 13(2), pages 109-127, April.
    19. Wang, Juite & Lai, Jung-Yu & Chang, Chih-Hsin, 2016. "Modeling and analysis for mobile application services: The perspective of mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 146-163.
    20. Gupta, Ruchita & Jain, Karuna, 2016. "Competition effect of a new mobile technology on an incumbent technology: An Indian case study," Telecommunications Policy, Elsevier, vol. 40(4), pages 332-342.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:36:y:2012:i:3:p:162-174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.