Advertisement

Quantitative Analysis of the Competitive Environment in the Electronic Communications Sector

  • Lucia MadleňákováEmail author
  • Mária Matúšková
  • Radovan Madleňák
  • Paweł Droździel
Conference paper
Part of the Lecture Notes in Networks and Systems book series (LNNS, volume 36)

Abstract

The contribution is devoted to the problem of determining the degree of concentration in relation to indicators typical of the electronic communications sector. At present, concentration monitoring is very important. The reason is the significant impact of the incumbent on some relevant markets, which is not particularly desirable from the point of view of end-user protection or existing barriers to entry. So, this situation is primarily in the countries of Central and Eastern Europe, even though the market has been fully liberalized for several years. The rapid growth of technologies in this sector is a significant factor in the growth of concentration too.

An important part for the determination of “concentration ratio” is represented by models, methods and procedures for identifying absolute or relative concentration. They differ substantially in the way they take into account the number of subjects who are the carriers of the indicator under observation. Sectoral concentration analysis is conducted through indexes. They monitor the competitive behaviour of the entities operating on the relevant market. This analysis provides information on the structure of the market to regulators and makes recommendations for market regulation. The concentration ratio of the strongest subjects and the Herfindahl-Hirschman Index of concentration is most commonly used in electronic communications. At this time, it is also important to look at the relative concentration in relation to the unequal distribution values of key market indicator in the relevant market. For this case, we present a variation coefficient in the contribution.

Keywords

Electronic communication Protection of competition Regulation  Concentration ratio Herfindahl-Hirschman index 

Notes

Acknowledgement

VEGA 1/0721/15 Research on the impact of postal services and telecommunication convergence on regulatory approaches in the postal sector.

VEGA 1/0515/15 Endogenous factors of the IPR intensive Industries in the regional enterprise environment in Slovak Republic.

References

  1. 1.
  2. 2.
    Act No. 351/2011 on Electronic Communications. http://www.teleoff.gov.sk/data/files/22211.pdf. Accessed 30 May 2017
  3. 3.
    Anbarci, N., Katzman, B.: A new industry concentration index. Econ. Pap. 34(4), 222–228 (2015)CrossRefGoogle Scholar
  4. 4.
    Andrisková, I., Čorejová, T.: Analysis of market environment and factors influencing the demand for frequency spectrum. In: Proceeding of 7th International Scientific Conference Company Diagnostics, Controlling and Logistics, pp. 6–11. EDIS – University of Žilina, Žilina (2014)Google Scholar
  5. 5.
    Bikker, J.A., van Leuvensteijn, M.A.: New Measure of Competition in the Financial Industry: The Performance-Conduct-Structure Indicator, 1st edn. Routledge, New York (2014)Google Scholar
  6. 6.
    Brezina, I., Oršulová, A., Pekár, J.: Analyses of absolute concentration of the selected branch by Herfindahl-Hirschman index. J. Econ. 1(57), 77–94 (2009)Google Scholar
  7. 7.
    Brezina, I., Pekar, J., Cickova, Z., Reiff, M.: Herfindahl-Hirschman index level of concentration values modification and analysis of their change. CEJOR 1(24), 49–72 (2016)MathSciNetzbMATHCrossRefGoogle Scholar
  8. 8.
    Čorejová, T., Strenitzerová, M., Madleňáková, L., Majerčáková, M., Jankalová, M.: Network Economy. 2nd edn. EDIS – University of Žilina, Žilina (2010)Google Scholar
  9. 9.
    Čorejová, T., Imrišková, E.: Convergence at the postal market. Maintenance Reliab. 3(39), 74–76 (2008)Google Scholar
  10. 10.
    Čorejová, T., Sedláková, I., Sedláková, E.: Analysis of electronic communication market in Slovak Republic by revenues in 2004–2012 years. Autobusy: Technika, Eksploatacja, Systemy Transportowe 6(17), 1653–1656 (2016)Google Scholar
  11. 11.
    Čorejová, T.: Regulatory impact indicators in selected sectors and their comparison within V4 countries. In: Proceedings of International Scientific Conference POSTPOINT 2013, pp. 36–42. EDIS – University of Žilina, Rajecké Teplice (2013)Google Scholar
  12. 12.
    Golan, A., Judge, G., Perloff, J.M.: Estimating the size distribution of firms using government summary statistics. J. Ind. Econ. 1(XLIV), 69–80 (1996)CrossRefGoogle Scholar
  13. 13.
    IT Yearbook (2004–2016). https://www.pcrevue.sk/it-rocenka. Accessed 18 June 2017
  14. 14.
    Kočišová, K.: Concentration of Slovak banking sector and bank performance. Finan. Markets. Sci. J. 3(11), 1–12 (2014)Google Scholar
  15. 15.
    Kwoka Jr., J.E.: Large firm dominance and price-cost margins in industries. South. Econ. J. 1(44), 183–189 (1977)CrossRefGoogle Scholar
  16. 16.
    Madleňáková, L., Madleňák, R.: The convergence of telecommunication and postal services and their impact on regulatory approaches. In: Proceedings of 15th International Conference RelStat 2015, pp. 158–165. Transport and Telecommunication Institute, Riga (2015)Google Scholar
  17. 17.
    Madleňáková, L., Majerčáková, M.: Legal Framework in Electronic Communications and Postal Services, 1st edn. DOLIS, Bratislava (2015)Google Scholar
  18. 18.
    Madudová, E., Kolarovszki, P.: Results of a cluster analysis of the ICT sector case study from the Slovak republic. In: Proceedings of the International Conference on Engineering Science and Management (ESM), pp. 156–159. Atlantis Press, Zhengzhou (2016)Google Scholar
  19. 19.
    Majerčáková, M.: Consumer Protection in the Electronic Communications Market. 1st edn. EDIS – University of Žilina. Žilina (2016)Google Scholar
  20. 20.
    Mihalčová, B., Hintošová, A.: Evaluation the concentration of the sector: theoretical approaches and legal tools. J. Econ. 8(52), 984–995 (2004)Google Scholar
  21. 21.
    Pulaj, E., Kume, V.: Measuring market concentration of construction industry. Vlora region evidence. Eur. Sci. J. 9(32), 121–136 (2013)Google Scholar
  22. 22.
    Regulatory Authority for Electronic Communications and Postal Services: Statistic Data from Electronic Communications. http://www.telecom.gov.sk/files/statistika_vus/telekom_ang/index.htm. Accessed 15 May 2017

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Lucia Madleňáková
    • 1
    Email author
  • Mária Matúšková
    • 1
  • Radovan Madleňák
    • 1
  • Paweł Droździel
    • 2
  1. 1.University of ŽilinaŽilinaSlovakia
  2. 2.Lublin University of TechnologyLublinPoland

Personalised recommendations