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The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications

  • GRUBER, Harald
  • VERBOVEN, Frank

We analyze the effect of government policies on the evolution of global mobile telecommunications markets during 1981-1997. We obtain the following findings. (i) Countries that issue first licenses at later dates converge relatively slowly to early moving countries. (ii) The introduction of competition has a significant impact on the diffusion, especially after capacity expanded (digital phase). (iii) The timing at which second licenses are issued is important. Sequential entry is preceded by pre-emptive behavior and has a stronger impact than simultaneous entry. (iv) For the analogue technology, setting a single technological standard speeds up the diffusion. The results can be explained by structural characteristics of the industry, such as capacity constraints, consumer switching costs and network externalities.

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Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 1999038.

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Length: 58 pages
Date of creation:
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Handle: RePEc:ant:wpaper:1999038
Contact details of provider: Postal: Prinsstraat 13, B-2000 Antwerpen
Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/

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  1. Geroski, Paul A, 1999. "Models of Technology Diffusion," CEPR Discussion Papers 2146, C.E.P.R. Discussion Papers.
  2. Valletti, Tommaso M & Cave, Martin, 1998. "Competition in UK mobile communications," Telecommunications Policy, Elsevier, vol. 22(2), pages 109-131, March.
  3. Laura D'Andrea Tyson, 1992. "Who's Bashing Whom? Trade Conflict in High-Technology Industries," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 86.
  4. Jerry A. Hausman, 1997. "Valuing the Effect of Regulation on New Services in Telecommunications," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1997 Micr), pages 1-54.
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