IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v37y2013i11p1124-1141.html
   My bibliography  Save this article

Competition in wholesale markets: Do MNOs compete to host MVNOs?

Author

Listed:
  • Garrido, Elisabet
  • Whalley, Jason

Abstract

This paper extends previous research examining wholesale market shares of mobile network operators (MNOs). This study demonstrates that wholesale market concentration has decreased over time because of the increase of competition of MNOs for hosting mobile virtual network operators (MVNOs). However, differences in wholesale market shares between MNOs have not disappeared. We propose that those operators that are late entrants in a market and belong to an international group with a proactive attitude towards hosting virtual operators positively influences wholesale market shares of MNOs. The empirical analysis is based on a panel data from 2000 to 2010 corresponding to MNOs and virtual operators in five European countries with high development of the virtual mobile industry. By closely examining KPN we show how being an international mobile group specialising in the wholesale market across Europe has enabled it to exploit complementarities that exist between traditional and virtual businesses.

Suggested Citation

  • Garrido, Elisabet & Whalley, Jason, 2013. "Competition in wholesale markets: Do MNOs compete to host MVNOs?," Telecommunications Policy, Elsevier, vol. 37(11), pages 1124-1141.
    • Handle: RePEc:eee:telpol:v:37:y:2013:i:11:p:1124-1141
    DOI: 10.1016/j.telpol.2013.03.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596113000426
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2013.03.005?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. Kim, Byung Woon & Seol, Seong Ho, 2007. "Economic analysis of the introduction of the MVNO system and its major implications for optimal policy decisions in Korea," Telecommunications Policy, Elsevier, vol. 31(5), pages 290-304, June.
    2. Shin, Dong-Hee, 2010. "MVNO services: Policy implications for promoting MVNO diffusion," Telecommunications Policy, Elsevier, vol. 34(10), pages 616-632, November.
    3. Maitland, Carleen F. & Bauer, Johannes M. & Westerveld, Rudi, 0. "The European market for mobile data: evolving value chains and industry structures," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 485-504, October.
    4. Song, Jae-Do, 2010. "Various wholesale price equilibria for mobile virtual network operators," Telecommunications Policy, Elsevier, vol. 34(10), pages 633-648, November.
    5. Peppard, Joe & Rylander, Anna, 0. "From Value Chain to Value Network:: Insights for Mobile Operators," European Management Journal, Elsevier, vol. 24(2-3), pages 128-141, April.
    6. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    7. Farrell, Joseph & Klemperer, Paul, 2007. "Coordination and Lock-In: Competition with Switching Costs and Network Effects," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 31, pages 1967-2072, Elsevier.
    8. Olla, Phillip & Patel, Nandish V., 0. "A value chain model for mobile data service providers," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 551-571, October.
    9. Kalmus, Philip & Wiethaus, Lars, 0. "On the competitive effects of mobile virtual network operators," Telecommunications Policy, Elsevier, vol. 34(5-6), pages 262-269, June.
    10. Banerjee, Aniruddha & Dippon, Christian M., 2009. "Voluntary relationships among mobile network operators and mobile virtual network operators: An economic explanation," Information Economics and Policy, Elsevier, vol. 21(1), pages 72-84, February.
    11. Whalley, Jason & Curwen, Peter, 2012. "Incumbency and market share within European mobile telecommunication networks," Telecommunications Policy, Elsevier, vol. 36(3), pages 222-236.
    12. van Kranenburg, H.L. (Hans) & Hagedoorn, John, 2008. "Strategic focus of incumbents in the European telecommunications industry: The cases of BT, Deutsche Telekom and KPN," Telecommunications Policy, Elsevier, vol. 32(2), pages 116-130, March.
    13. Rood, Hendrik & te Velde, R. A., 0. "Investment strategies in the Netherlands," Telecommunications Policy, Elsevier, vol. 27(10-11), pages 701-715, November.
    14. Ulset, Svein, 0. "Mobile virtual network operators: a strategic transaction cost analysis of preliminary experiences," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 537-549, October.
    15. Ordover, Janusz & Shaffer, Greg, 2007. "Wholesale access in multi-firm markets: When is it profitable to supply a competitor?," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1026-1045, October.
    Full references (including those not matched with items on IDEAS)

    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. Key Pousttchi & Yvonne Hufenbach, 2011. "Value Creation in the Mobile Market," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 3(5), pages 299-311, October.
    2. Cricelli, Livio & Grimaldi, Michele & Levialdi Ghiron, Nathan, 2012. "The impact of regulating mobile termination rates and MNO–MVNO relationships on retail prices," Telecommunications Policy, Elsevier, vol. 36(1), pages 1-12.
    3. Cricelli, Livio & Grimaldi, Michele & Ghiron, Nathan Levialdi, 2011. "The competition among mobile network operators in the telecommunication supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 22-29, May.
    4. Curwen, Peter & Whalley, Jason, 2013. "Mapping worldwide mobile networks: Some problems and indicative solutions," Telecommunications Policy, Elsevier, vol. 37(11), pages 1150-1165.
    5. Corrocher, Nicoletta & Lasio, Laura, 2013. "Diversification strategies in network-based services: The case of mobile virtual network operators," Telecommunications Policy, Elsevier, vol. 37(11), pages 1110-1123.
    6. Barua, Bidushi & Matinmikko-Blue, Marja & Latva-aho, Matti, 2019. "On Design of Contracts Between Traditional MNOs and Local 5G Micro Operators," 30th European Regional ITS Conference, Helsinki 2019 205166, International Telecommunications Society (ITS).
    7. Sanghoon Lee & Wonjoon Kim, 2017. "The knowledge network dynamics in a mobile ecosystem: a patent citation analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(2), pages 717-742, May.
    8. Liao, Chun-Hsiung & Lien, Chun-Yu, 2012. "Measuring the technology gap of APEC integrated telecommunications operators," Telecommunications Policy, Elsevier, vol. 36(10), pages 989-996.
    9. Binsfeld, Nico & Whalley, Jason & Pugalis, Lee, 2017. "An analysis of the structure, actors and interrelationships producing Luxembourg's ICT ecosystem," 28th European Regional ITS Conference, Passau 2017 169450, International Telecommunications Society (ITS).
    10. Timo Smura & Annukka Kiiski & Heikki Hämmäinen, 2007. "Virtual operators in the mobile industry: a techno-economic analysis," Netnomics, Springer, vol. 8(1), pages 25-48, October.
    11. Whang, Yun-kyung & Hobday, Michael, 2011. "Local 'Test Bed' Market Demand in the Transition to Leadership: The Case of the Korean Mobile Handset Industry," World Development, Elsevier, vol. 39(8), pages 1358-1371, August.
    12. Luis Guijarro & Vicent Pla & Bruno Tuffin & Patrick Maillé & Jose Vidal, 2011. "Competition and bargaining in wireless networks with spectrum leasing," Post-Print hal-00725488, HAL.
    13. Brito, Duarte & Pereira, Pedro & Vareda, João, 2012. "Incentives to invest and to give access to non-regulated new technologies," Information Economics and Policy, Elsevier, vol. 24(3), pages 197-211.
    14. Binsfeld, Nico & Pugalis, Lee & Whalley, Jason, 2015. "ICT ecosystems in small countries: an analysis of Luxembourg," 26th European Regional ITS Conference, Madrid 2015 127127, International Telecommunications Society (ITS).
    15. Li, Aijun & Du, Nan & Wei, Qian, 2014. "The cross-country implications of alternative climate policies," Energy Policy, Elsevier, vol. 72(C), pages 155-163.
    16. Claude Paraponaris, 2017. "Plateformes numériques, conception ouverte et emploi," Post-Print halshs-01614430, HAL.
    17. Mark Armstrong & Julian Wright, 2009. "Mobile Call Termination," Economic Journal, Royal Economic Society, vol. 119(538), pages 270-307, June.
    18. Weitzel, Matthias & Ghosh, Joydeep & Peterson, Sonja & Pradhan, Basanta K., 2015. "Effects of international climate policy for India: evidence from a national and global CGE model," Environment and Development Economics, Cambridge University Press, vol. 20(4), pages 516-538, August.
    19. Joshua C. Hall, Serkan Karadas and Minh Tam T. Schlosky, 2018. "Is There Moral Hazard in the Heavily Indebted Poor Countries (HIPC) Initiative Debt Relief Process?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(3), pages 1-24, September.
    20. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09hc03jc5h8 is not listed on IDEAS
    21. Mekonnen, Daniel Ayalew & Gerber, Nicolas & Matz, Julia Anna, 2018. "Gendered Social Networks, Agricultural Innovations, and Farm Productivity in Ethiopia," World Development, Elsevier, vol. 105(C), pages 321-335.

    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:37:y:2013:i:11:p:1124-1141. 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.