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The Network Investment Economics of the Mobile Wireless Industry

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  • Hemant K. Sabat

    (Perot Systems Corporation)

Abstract

This paper provides a theory to account for what drives the network investments in the mobile wireless industry. In the mobile wireless industry, investments made by network operators are one of the key industry and business drivers. Of these cost drivers, the most influential on the industry’s dynamics are the capital investments, which includes network infrastructure investments. This article traces the industry’s network investments drivers, key economic characteristics and service providers’ offerings along the industry’s three chronological phases of evolution. The industry’s technology investment and subscriber penetration life cycles have been discovered and employed to explain the current industry dynamics. The industry’s stakeholders who would benefit from this paper include researchers, managers, investors and regulators. With an understanding of these cycles, the industry’s stakeholders will be better equipped to manage uncertainties, which, in turn, will lead to the emergence of a stable industry.

Suggested Citation

  • Hemant K. Sabat, 2005. "The Network Investment Economics of the Mobile Wireless Industry," Information Systems Frontiers, Springer, vol. 7(2), pages 187-206, May.
  • Handle: RePEc:spr:infosf:v:7:y:2005:i:2:d:10.1007_s10796-005-1487-y
    DOI: 10.1007/s10796-005-1487-y
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    References listed on IDEAS

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    1. Sabat, Hemant Kumar, 0. "The evolving mobile wireless value chain and market structure," Telecommunications Policy, Elsevier, vol. 26(9-10), pages 505-535, October.
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    Citations

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    Cited by:

    1. Ossi Pöllänen & Leo Bhebhe, 2011. "Efficient deployment of large mobile networks," Netnomics, Springer, vol. 12(2), pages 115-132, July.
    2. Ossi Pöllänen & Mikko Säily, 2007. "Mobile coverage investment model linked to mobile network design," Netnomics, Springer, vol. 8(1), pages 49-70, October.
    3. Ashutosh Jha & Manisha Chakrabarty & Debashis Saha, 2023. "Network Investment as Drivers of Mobile Subscription – A Firm-level Analysis," Information Systems Frontiers, Springer, vol. 25(5), pages 1811-1828, October.
    4. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    5. Ashutosh Jha & Debashis Saha, 2022. "Mobile Broadband for Inclusive Connectivity: What Deters the High-Capacity Deployment of 4G-LTE Innovation in India?," Information Systems Frontiers, Springer, vol. 24(4), pages 1305-1329, August.
    6. Casey, Thomas R. & Töyli, Juuso, 2012. "Mobile voice diffusion and service competition: A system dynamic analysis of regulatory policy," Telecommunications Policy, Elsevier, vol. 36(3), pages 162-174.
    7. Phillip Olla & Jyoti Choudrie, 2014. "Mobile technology utilization for social development in developing countries: An ethnographic futures research study," Information Systems Frontiers, Springer, vol. 16(3), pages 369-382, July.

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