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

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  • GRUBER, Harald
  • VERBOVEN, Frank

Abstract

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.

Suggested Citation

  • GRUBER, Harald & VERBOVEN, Frank, "undated". "The evolution of markets under entry and standards regulation - The case of a global mobile telecommunications," Working Papers 1999038, University of Antwerp, Faculty of Business and Economics.
    • Handle: RePEc:ant:wpaper:1999038
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    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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