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

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  • 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
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    References listed on IDEAS

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    Citations

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    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. 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, Open Access Journal, vol. 7(10), pages 1-29, October.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

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