Abstract
This chapter discusses the role of regulation in the evolution of the mobile services industry from an industry clockspeed perspective. Based on the analysis of the Finnish mobile services market it is argued that regulative actions, such as handset subsidy ban, has not only pricing or competitive implications but also structural consequences which may even determine which business models or integration strategies are allowed for the mobile operators. In a fast moving industry like mobile services, it is of utmost importance that regulation does not slow down the natural speed of industry evolution. In a market where new technologies and business models emerge in waves (e.g. the 1st generation of analogue mobile telephony, the 2nd generation of GSM based cellular technology, and the emerging 3rd generations of UMTS technology), policy makers and regulators must ensure that prevailing regulatory frameworks do not artificially force a market to hang on to market structures which may no longer be optimal under the new circumstances.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Blanco CL (2003) Presentation at the ITU Telecom World 2003 in Geneva
Constance SC, Gower JR (2001) A Value Chain Perspective on the Economic Drivers of Competition in the Wireless Telecommunications Industry. MBA paper, Alfred P. Sloan School of Management, MIT
Fine CH (1996) Industry Clockspeed and Competency Chain Design: An Introductory Essay. Proceedings of the 1996 Manufacturing and Service Operations Management Conference, Darthmouth College, Hanover, NH, June 24–25
Fine CH (1998) Clock speed: Winning Industry Control in the Age of Temporary Advantage. Perseus Books, Reading, Massachusetts
Fine CH (2000) Clock speed-Based Strategies for Supply Chain Design. Production and Operations Management 9(3): 213–221
Harrigan KR (1985) Vertical integration and corporate strategy. Academy of Management Journal 28(2): 397–425
Kauppalehti (2004) Price war will drive operators to bankruptcy says DNA’s Tolonen. April 19 (in Finnish)
Mendelson H, Pillai RR (1998) Clockspeed and Informational Response: Evidence from the Information Technology Industry. Information Systems Research 9: 415–433
Mendelson H, Pillai RR (1999) Industry Clockspeed: Measurement and Operational Implications. Manufacturing & Service Operations Management 1(1): 1–20
Mendelson H (2000) Organizational Architecture and Success in the Information Technology Industry. Management Science 46(4): 513–529.
Mitchell W, Singh K (1996) Survival of business using collaborative relationships to commercialize complex goods. Strategic Management Journal 17: 169–195
Niemi K (2004) Text-messaging is holding back the mobile world. Tekniikka & Talous June 9 (in Finnish)
Novari V (2003) Presentation at the ITU Telecom World 2003 conference in Geneva
Ollila J (2003) Structuring for Growth. Presentation at Nokia Capital Market Day, November 24, New York
Palmberg C, Martikainen O (2003) Overcoming a technological discontinuity — The case of the Finnish telecom industry and the GSM. Discussion paper Nr. 885, ETLA — The Research Institute of the Finnish Economy
Pirilä-Mänttäri A (2004) Mobile phone number has been ported almost one million times in one year. Helsingin Sanomat July 2 (in Finnish)
Poropudas T (2005) FICORA blamed for the lameness of Finnish mobile services industry. Retrieved from www.mobilemonday.com, September 26
Ruohonen A (2004) Finnish are the most eager to switch subscriptions. Taloussanomat July 2 (in Finnish)
Saarinen M (2004) Bundling of mobile phones and subscriptions may be allowed in the future. Taloussanomat June 10 (in Finnish)
Steinbock D (2003) The Wireless Horizons: Strategy and Competition in the Worldwide Mobile Marketplace. Amacom, New York
Vepsäläinen A (2004) Are we securing the future of information society?. Taloussanomat, May 15 (in Finnish).
Vesa J (2005) Mobile Services in a Networked Economy. IRM Press, Hershey, Pennsylvania
Vesa J (2004a) Contradictory views of the bundling of handsets and mobile subscription. Tietoviikko November 11 (in Finnish)
Vesa J (2004b) The Impact of Industry Structure and Product Architecture on the Success of Mobile Data Services. Austin Mobility Roundtable, March 11–12
Vesa J (2003) The Impact of Industry Structure, Product Architecture, and Ecosystems on the Success of Mobile Data Services: A Comparison between European and Japanese Markets. ITS 14th European Regional Conference, Helsinki, August 23–24
Williamson OE (1975) Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2006 Physica-Verlag Heidelberg
About this chapter
Cite this chapter
Vesa, J. (2006). Regulatory Framework and Industry Clockspeed. In: Preissl, B., Müller, J. (eds) Governance of Communication Networks. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/3-7908-1746-5_5
Download citation
DOI: https://doi.org/10.1007/3-7908-1746-5_5
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-1745-4
Online ISBN: 978-3-7908-1746-1
eBook Packages: Business and EconomicsEconomics and Finance (R0)