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A Study on the Optimal Number of Mobile Carriers: Discussion of Discussion of Magic Number – three or four

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  • Ueda, Masashi

Abstract

In recent years, mergers between communications companies have been progressing especially in mobile carriers' market. Regulatory authorities are worried about increasing consolidations and less competition, and have decided to impose conditions on the mergers or even disapprove them. In many cases, just before the generation change, the competitively inferior operators sell their business and exit the market because of the cost of acquiring spectrum. The concern of the regulators is cases such as Ireland and Austria, where ARPU rose because the competitive environment became milder due to mergers between MNOs. On the other hand, in Germany, where measures to promote competition after the merger (reallocating part of the new company's spectrum to other companies, leasing out 20% to 30% of its capacity, etc.) were effective, ARPU did not increase. On the other hand, when a window for new spectrum acquisition opens, new entrants may join the market. In the fifth generation (5G), Dish in the US, 1&1 Drillisch in Germany, and Rakuten in Japan took advantage of the opportunity to enter the market. In the case of Drillisch and Rakuten, they acquired spectrum and/or licenses in 2019 with the expectation of migrating existing customers from MVNOs to MNOs. (...)

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  • Ueda, Masashi, 2021. "A Study on the Optimal Number of Mobile Carriers: Discussion of Discussion of Magic Number – three or four," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238058, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itsb21:238058
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    References listed on IDEAS

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    1. Houngbonon, Georges Vivien, 2015. "The Impact of Entry and Merger on the Price of Mobile Telecommunications Services," 26th European Regional ITS Conference, Madrid 2015 127148, International Telecommunications Society (ITS).
    2. Federico, Giulio & Langus, Gregor & Valletti, Tommaso, 2017. "A simple model of mergers and innovation," Economics Letters, Elsevier, vol. 157(C), pages 136-140.
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