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  • Martin Fransman

    (University of Edinburgh)

  • Jackie Krafft

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)


What is the telecommunications industry? How does it relate to other activities in areas such as computing, software, semiconductors, the internet and electronic commerce, and the media? Where are its boundaries? What products and services should be included within it? What are its major markets? Which companies should be included in the industry? In this paper, we tackle these important questions by developing a layer model in order to map the industry. Layer models generally have a long and distinguished history in the telecommunications and computing fields. In the area of engineering and software design, they allow engineers to reduce and render tractable the awesome complexity of complex systems. They help to achieve this purpose essentially by decomposing the system into relatively autonomous subsystems that interact with each other through an interface that is often standardized in order to facilitate coordination. But, in this paper, the layer model does more than merely decompose a complex system into component subsystems. While each layer may be thought of as a subsystem (usually further subdivided into sub-sub-systems, and even further subdivided), the layer model also, by its nature, draws attention to the interdependence of each layer on the layers below and above it. By decomposing the telecommunications industry into different layers, and further by analysing the interdependence between the major layers that compose the industry, we will provide a detailed assessment of an industry, characterized by recurrent technological innovation and faced with an increasing diversification of demand. The reader should note that this article draws heavily on our telecoms website:

Suggested Citation

  • Martin Fransman & Jackie Krafft, 2002. "Telecommunications," Post-Print hal-00212269, HAL.
  • Handle: RePEc:hal:journl:hal-00212269
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    Cited by:

    1. Antonelli, Cristiano, 2004. "To Use or To Sell Technological Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200405, University of Turin.
    2. Jackie Krafft, 2010. "Profiting in the info-communications in the age of broadband: lessons and new considerations," Post-Print hal-00203801, HAL.
    3. Jackie Krafft & Francesco Quatraro & Pier Paolo Saviotti, 2014. "The Dynamics of Knowledge-intensive Sectors' Knowledge Base: Evidence from Biotechnology and Telecommunications," Industry and Innovation, Taylor & Francis Journals, vol. 21(3), pages 215-242, April.
    4. Jackie Krafft, 2004. "Shakeout in industrial dynamics: new developments, new puzzles," Chapters,in: Applied Evolutionary Economics and Complex Systems, chapter 8 Edward Elgar Publishing.
    5. Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2008. "Evolution of the knowledge base in knowledge intensive sectors," Working Papers hal-00264261, HAL.
    6. Pascal Le Masson & Armand Hatchuel & Benoit Weil, 2010. "Modeling Novelty-Driven Industrial Dynamics with Design Functions: understanding the role of learning from the unknown," Post-Print hal-00696970, HAL.
    7. László Lörincz & Péter Nagy, 2010. "Switching Costs in Telecommunications: Conclusions from a Hungarian Survey," Chapters,in: Promoting New Telecom Infrastructures, chapter 11 Edward Elgar Publishing.
    8. Antonelli, Cristiano, 2005. "The Governance Of Localized Knowledge: An Information Economics Approach For The Economics Of Knowledge," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200502, University of Turin.

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