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Creation and sharing of value in the telecoms sector. (How telecom operators' investments benefit content providers rather than themselves.)

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  • Jeanjean, François

Abstract

The fast technical progress coupled with a fierce competition in telecommunication markets urge operators to invest year after year a huge amount of investment. However, the maturation and saturation of markets prevents them from reaping the benefits. While telecommunication infrastructure improves fastly, the revenues of telecommunication operators tend to stagnate. Content providers are taking advantage of increased network capacity to offer more content that they are able to monetize. It is therefore they who benefit from the increase in network capacities and not the operators who nevertheless financed it. This article develops a theoretical model which highlights this mechanism and corresponds perfectly to empirical observations.

Suggested Citation

  • Jeanjean, François, 2024. "Creation and sharing of value in the telecoms sector. (How telecom operators' investments benefit content providers rather than themselves.)," 24th ITS Biennial Conference, Seoul 2024. New bottles for new wine: digital transformation demands new policies and strategies 302486, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itsb24:302486
    as

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    File URL: https://www.econstor.eu/bitstream/10419/302486/1/ITS-Seoul-2024-paper-060.pdf
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    References listed on IDEAS

    as
    1. Baranes, Edmond & Vuong, Cuong Hung, 2023. "Economic contribution to the debate on cost sharing policy," Telecommunications Policy, Elsevier, vol. 47(9).
    2. Jullien, Bruno & Bouvard, Matthieu, 2022. "Fair cost sharing: big tech vs telcos," TSE Working Papers 22-1376, Toulouse School of Economics (TSE).
    3. Edmond Baranes & Cuong Hung Vuong, 2023. "Economic contribution to the debate on cost sharing policy," Working Papers hal-04016762, HAL.
    4. Jirakasem, Monarat & Mitomo, Hitoshi, 2019. "Relationship of Over-the-top (OTT) Communications and Traditional Telecommunications Services: the Case of Thailand," 30th European Regional ITS Conference, Helsinki 2019 205184, International Telecommunications Society (ITS).
    5. Muhammad Farooq & Valliappan Raju, 2019. "Impact of Over-the-Top (OTT) Services on the Telecom Companies in the Era of Transformative Marketing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(2), pages 177-188, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Competition; Investment; Telecommunication Operators; Content Providers;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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