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Mobile market performance and market structure in Europe during the 4G era

Author

Listed:
  • Abate, Serafino
  • Bahia, Kalvin
  • Castells, Pau

Abstract

This study evaluates the impact of competition on quality, innovation and price in Europe's mobile communications market during the 4G era (2011-18). Our results indicate that European mobile users in more concentrated markets benefitted the most from higher network quality, particularly with regard to download speeds. We find that dispersion of fixed costs and assets among a greater number of players can result in diseconomies of scale and a less efficient use of resources, which translates into lower network performance, to the detriment of consumers. We also find evidence of investment per operator being greater in markets with higher profit margins, which are also typically more concentrated markets.

Suggested Citation

  • Abate, Serafino & Bahia, Kalvin & Castells, Pau, 2020. "Mobile market performance and market structure in Europe during the 4G era," ITS Conference, Online Event 2020 224841, International Telecommunications Society (ITS).
    • Handle: RePEc:zbw:itso20:224841
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    File URL: https://www.econstor.eu/bitstream/10419/224841/1/Abate-et-al.pdf
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    Cited by:

    1. Bauer, Johannes M. & Bohlin, Erik, 2022. "Regulation and innovation in 5G markets," Telecommunications Policy, Elsevier, vol. 46(4).
    2. Sörries, Bernd & Pavel, Ferdinand & Nett, Lorenz & Kaupert, Tobias & Lucidi, Stefano, 2023. "Wettbewerbsverhältnisse im Mobilfunkmarkt - Öffentliche Fassung - enthält keine Betriebs- und Geschäftsgeheimnisse," Study Series, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH, number 283236, June.

    More about this item

    JEL classification:

    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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