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Past, Present and Future of the Telecommunications Industry

  • Pennings Jacqueline
  • Kranenburg Hans van
  • Hagedoorn John


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    The telecommunications industry has experienced a series of dramatic changes since itsinception in the 1880s. Due to the latest liberalization and privatization wave in the world, the telecommunications industry has turned into a dynamic environment and is rapidly growing.In addition, the New Economy emerged and brought new technological developments in the1990s. They have stimulated the convergence of previously distinct industries such as thetelecommunications, information technology, entertainment, media, and consumerelectronics, into the so-called multimedia information industry. This study discusses the (de)regulation actions and their implications on the telecommunications industry as of its beginning. Furthermore, this study also presents a general overview of major trends in inter-firm partnerships and M&As in the telecommunications industry since 1985, examining both the general developments and the distribution according to internationalization and industries. We find that the overall trends demonstrated an increase in importance of inter-firm partnerships and M&As over time. Another significant finding is the increase in importance of other industries. In relative terms, the growth of M&As and alliances with partners outside the telecommunications industry superseded the increase in the number of M&A’s and alliances within the industry.

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    Paper provided by Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR) in its series Research Memorandum with number 015.

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    Date of creation: 2005
    Date of revision:
    Handle: RePEc:unm:umamet:2005015
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    1. Oh, Jong-Geun, 1996. "Global strategic alliances in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 20(9), pages 713-720, November.
    2. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2001. "Liberalizing basic telecommunications : the Asian experience," Policy Research Working Paper Series 2718, The World Bank.
    3. Bourreau, Marc & Dogan, Pinar, 2001. "Regulation and innovation in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 25(3), pages 167-184, April.
    4. Chan-Olmsted, Sylvia & Jamison, Mark, 2001. "Rivalry through alliances:: Competitive Strategy in the Global Telecommunications Market," European Management Journal, Elsevier, vol. 19(3), pages 317-331, June.
    5. Capron, Laurence & Mitchell, Will, 1998. "The Role of Acquisitions in Reshaping Business Capabilities in the International Telecommunications Industry," Industrial and Corporate Change, Oxford University Press, vol. 7(4), pages 715-30, December.
    6. Fink, Carsten & Mattoo, Aaditya & Rathindran, Randeep, 2003. "An assessment of telecommunications reform in developing countries," Information Economics and Policy, Elsevier, vol. 15(4), pages 443-466, December.
    7. Omura, Tatsuya, 1997. "Japan's stumbling policy for competition in the telecommunications industry," Telecommunications Policy, Elsevier, vol. 21(2), pages 127-141, March.
    8. Chacko, Mani & Mitchell, Will, 1998. "Growth Incentives to Invest in a Network Externality Environment," Industrial and Corporate Change, Oxford University Press, vol. 7(4), pages 731-44, December.
    9. Manova, Shalom, et al, 1998. "Mass Market Entry of Wireless Telecommunications," Industrial and Corporate Change, Oxford University Press, vol. 7(4), pages 679-94, December.
    10. Graack, Cornelius, 1996. "Telecom operators in the European Union : Internationalization strategies and network alliances," Telecommunications Policy, Elsevier, vol. 20(5), pages 341-355, June.
    11. Tanaka, Eiichi, 1997. "The status of Nippon Telegraph and Telephone Corporation (NTT)," Telecommunications Policy, Elsevier, vol. 21(2), pages 85-99, March.
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