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Declining first-mover advantage in mobile telecommunications markets

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  • Nakil Sung

Abstract

First-mover advantage may be more remarkable in the inherently oligopolistic mobile telecommunications market. This study evaluates the impact of market experience and competition on market share and profitability in mobile markets. Specifically, the study estimates regression equations for market share and earnings before interest, tax, depreciation, and amortization (EBITDA) service margin as a proxy for profitability, relying on a panel of mobile network operator (MNO) data from 27 Organisation for Economic Co-operation and Development member states for the period 1998-2009. The empirical results demonstrate that market experience (relative time in the market) exerted a clearly positive effect on the market share and the EBITDA service margin for MNOs. On the other hand, this first-mover advantage declines over time with accumulated competition experience, especially in the latter half of the 2000s.

Suggested Citation

  • Nakil Sung, 2014. "Declining first-mover advantage in mobile telecommunications markets," The Service Industries Journal, Taylor & Francis Journals, vol. 34(2), pages 89-102, January.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:2:p:89-102
    DOI: 10.1080/02642069.2013.763931
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    Cited by:

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    2. ., 2014. "Restructuring among mobile service providers: a ten-year perspective," Chapters, in: Mobile Telecommunications Networks, chapter 1, pages 1-25, Edward Elgar Publishing.
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