IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v33y2009i7p339-347.html
   My bibliography  Save this article

Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers

Author

Listed:
  • Fernández, Zulima
  • Usero, Belén

Abstract

This paper studies the relationship between competitive strategy and improvement in the competitive position of pioneers and followers in the mobile telecommunications industry. The analysis uses a panel of data comprising all the actions of European firms operating in the digital mobile telecommunications industry with GSM 900 and/or DCS 1800 networks. The results show that competitors gain market share when they follow competitive strategies that are different from those of other firms. The paper also finds that price reduction actions represent the best approach for followers, while differentiation actions are the most effective strategy for pioneers.

Suggested Citation

  • Fernández, Zulima & Usero, Belén, 2009. "Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers," Telecommunications Policy, Elsevier, vol. 33(7), pages 339-347, August.
  • Handle: RePEc:eee:telpol:v:33:y:2009:i:7:p:339-347
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596109000305
    Download Restriction: Full text for ScienceDirect subscribers only

    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. d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
    2. Lippert, Steffen & Spagnolo, Giancarlo, 2008. "Internet peering as a network of relations," Telecommunications Policy, Elsevier, pages 33-49.
    3. Øystein Foros & Bjørn Hansen & Jan Sand, 2002. "Demand-side Spillovers and Semi-collusion in the Mobile Communications Market," Journal of Industry, Competition and Trade, Springer, vol. 2(3), pages 259-278, September.
    4. David Mandy & David Sappington, 2007. "Incentives for sabotage in vertically related industries," Journal of Regulatory Economics, Springer, pages 235-260.
    5. Kotakorpi, Kaisa, 2006. "Access price regulation, investment and entry in telecommunications," International Journal of Industrial Organization, Elsevier, vol. 24(5), pages 1013-1020, September.
    6. Joshua S. Gans & Stephen P. King & Julian Wright, 2005. "Wireless Communications," Monash Economics Working Papers archive-45, Monash University, Department of Economics.
    7. Mats Bergman, 2005. "When Should an Incumbent be Obliged to Share its Infrastructure with an Entrant Under the General Competition Rules?," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 5-26, January.
    8. Shrimali, Gireesh & Kumar, Sunil, 2008. "Bill-and-Keep peering," Telecommunications Policy, Elsevier, pages 19-32.
    9. Carmen Matutes & Pierre Regibeau, 1988. ""Mix and Match": Product Compatibility without Network Externalities," RAND Journal of Economics, The RAND Corporation, pages 221-234.
    10. Matutes, Carmen & Regibeau, Pierre, 1996. "A selective review of the economics of standardization. Entry deterrence, technological progress and international competition," European Journal of Political Economy, Elsevier, vol. 12(2), pages 183-209, September.
    11. Economides, Nicholas, 1989. "Desirability of Compatibility in the Absence of Network Externalities," American Economic Review, American Economic Association, vol. 79(5), pages 1165-1181, December.
    12. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    13. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    14. Joanna Poyago-Theotoky, 1999. "A Note on Endogenous Spillovers in a Non-Tournament R & D Duopoly," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 253-262, November.
    15. Alessio D'Ignazio & Emanuele Giovannetti, 2006. "From Exogenous To Endogenous Economic Networks: Internet Applications," Journal of Economic Surveys, Wiley Blackwell, vol. 20(5), pages 757-796, December.
    16. Badasyan, Narine & Chakrabarti, Subhadip, 2008. "A simple game-theoretic analysis of peering and transit contracting among Internet service providers," Telecommunications Policy, Elsevier, pages 4-18.
    17. Foros, Oystein, 2004. "Strategic investments with spillovers, vertical integration and foreclosure in the broadband access market," International Journal of Industrial Organization, Elsevier, vol. 22(1), pages 1-24, January.
    18. Fabrizi, Simona & Wertlen, Bruno, 2008. "Roaming in the Mobile Internet," Telecommunications Policy, Elsevier, pages 50-61.
    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. Hüsig, Stefan, 2013. "The disruptive potential of PWLAN at the country-level: The cases of Germany, the UK, and the USA," Telecommunications Policy, Elsevier, pages 1060-1070.
    2. Muck, Johannes & Heimeshoff, Ulrich, 2012. "First mover advantages in mobile telecommunications: Evidence from OECD countries," DICE Discussion Papers 71, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Mirjana Pejic Bach & Jovana Zoroja & Zeljko Jirous, 2013. "Croatian Telecommunication Market: Concentration Trends in the Period from 2003 to 2008," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 11(1), pages 131-142.
    4. 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, pages 1-12.
    5. Ghezzi, Antonio & Cortimiglia, Marcelo Nogueira & Frank, Alejandro Germán, 2015. "Strategy and business model design in dynamic telecommunications industries: A study on Italian mobile network operators," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 346-354.
    6. Whalley, Jason & Curwen, Peter, 2012. "Incumbency and market share within European mobile telecommunication networks," Telecommunications Policy, Elsevier, pages 222-236.

    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:33:y:2009:i:7:p:339-347. See general information about how to correct material in RePEc.

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

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.