To eat or to be eaten--on the role of entrepreneurship in the Norwegian telecom access sector

The purpose of this paper is to analyse mechanisms of evolution by studying a population of firms involved in the provision of telecom access in Norway after the liberation of the telecom sector during the 1990s. The approach is based on a combination of theory on entrepreneurship and theories on sectoral innovation systems, in particular the role of entrepreneurship under different technological regimes. By analysing the role of different actors in the market for telecom access, the relationship between the previous state monopolist Telenor and other companies entering the market is discussed. The main conclusion is that Telenor, in spite of the liberalization of the telecom market, still is in a very dominant position in the markets for access provision. To the extent that Telenor is challenged, it is basically by other existing telecom companies. By the time of finalizing this paper (2006), none of the entrepreneurial firms have survived as independent firms. The main conclusion deriving from this analysis, is that the telecom access sector is characterized by the routinized regime, in which the larger, established firms are the dominant players. However, this does not mean that entrepreneurs do not play important roles. By starting their new ventures, entrepreneurs are challenging the positions of the incumbents; they are contributing to more competition and innovation. Without the pressure from the entrepreneurial entrants, the level of innovation in the sectoral system would have been significantly lower.