Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry

While mobile virtual network operators (MVNOs) increase competition in the mobile telecommunications industry, granting market access to MVNOs may have unwanted consequences. In particular, infrastructure investment by incumbent mobile network operators (MNOs) may be smaller. This paper examines the...

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Main Authors: Kim, J., Kim, Y., Gaston, Noel, Lestage, R., Flacher, D.
Format: Journal Article
Published: Pergamon 2011
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/21427
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author Kim, J.
Kim, Y.
Gaston, Noel
Lestage, R.
Kim, Y.
Flacher, D.
author_facet Kim, J.
Kim, Y.
Gaston, Noel
Lestage, R.
Kim, Y.
Flacher, D.
author_sort Kim, J.
building Curtin Institutional Repository
collection Online Access
description While mobile virtual network operators (MVNOs) increase competition in the mobile telecommunications industry, granting market access to MVNOs may have unwanted consequences. In particular, infrastructure investment by incumbent mobile network operators (MNOs) may be smaller. This paper examines the effects of MVNO entry and access regulation on the investment behavior of MNOs. It uses firm-level data for 58 MNOs in 21OECD countries during2000–2008. The results suggest that mandated provision of access is related to lower investment intensity of MNOs, while voluntary access provision as no-effect. Although reduced investment incentives do not necessarily correspond to under-investment, this underscores the need for those countries where MVNOs are provided access to address the issue of investment incentives.
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institution Curtin University Malaysia
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publishDate 2011
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spelling curtin-20.500.11937-214272018-03-29T09:06:35Z Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry Kim, J. Kim, Y. Gaston, Noel Lestage, R. Kim, Y. Flacher, D. MNO MVNO Access regulation Investment Competition Mobile telecommunications While mobile virtual network operators (MVNOs) increase competition in the mobile telecommunications industry, granting market access to MVNOs may have unwanted consequences. In particular, infrastructure investment by incumbent mobile network operators (MNOs) may be smaller. This paper examines the effects of MVNO entry and access regulation on the investment behavior of MNOs. It uses firm-level data for 58 MNOs in 21OECD countries during2000–2008. The results suggest that mandated provision of access is related to lower investment intensity of MNOs, while voluntary access provision as no-effect. Although reduced investment incentives do not necessarily correspond to under-investment, this underscores the need for those countries where MVNOs are provided access to address the issue of investment incentives. 2011 Journal Article http://hdl.handle.net/20.500.11937/21427 10.1016/j.telpol.2011.08.004 Pergamon restricted
spellingShingle MNO
MVNO
Access regulation
Investment
Competition
Mobile telecommunications
Kim, J.
Kim, Y.
Gaston, Noel
Lestage, R.
Kim, Y.
Flacher, D.
Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title_full Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title_fullStr Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title_full_unstemmed Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title_short Access Regulation and Infrastructure Investment in the Mobile Telecommunications Industry
title_sort access regulation and infrastructure investment in the mobile telecommunications industry
topic MNO
MVNO
Access regulation
Investment
Competition
Mobile telecommunications
url http://hdl.handle.net/20.500.11937/21427