An Analysis on the Competition of Telecommunication Industry and Forecast of Its Development on Industry Structure in Game Point of View
Date Issued
2005
Date
2005
Author(s)
Tseng, Lang-Chu
DOI
zh-TW
Abstract
The pass of the “Three Telecom Acts” in 1996 introduced a new competition era on telecommunication industry. Different critical resource requirement has caused a significant step forward a competition in mobile industry, while Chung Hua Telecommunication still possesses a huge market share in fixed telecommunication service and ISP industries. The scope of the research was limited to the three industries for their competition in the past and future development of industry structure with the introduction of Broadband Wireless Access technology.
The research found that: 1) When critical resource is controlled by a single enterprise, there is hardly a competitive environment, esp. the enterprise is also engaged in the downstream industry. 2) The introduction of a new service will probably cause a various kinds of price competition and its saturation will weak the incentive to a price competition, which will also increase the possibility of tacit collusion. 3) During long-term interactions, tit-for-tat strategy will deliver a signal to reach a tacit collusion among enterprises.
The research concluded a forecast in 3G service that: 1) The introduction of 3G service will cause a price competition in mobile industry. 2) The new player in the game, new entrant in 3G service industry, will cause a different outcome of the game. Its entry will increase the possibility to price competition under critical customer base requirement, coming with a break-even goal. 3) Tacit collusion will be reached within a shorter time period with the past interaction experience in 2G when the new 3G entrants switch their focus on profitability.
The research also concluded a forecast in telecommunication industry structure with WiMAX introduction that: 1) Fixed telecommunication operators except Chung Huan, would look for an alternative to DSL last mile and add data and video services. ISP would also construct or cooperate with fixed telecommunication enterprise for a last mile as second source. 2) WiMAX operators will request The Directorate General of Telecommunications for a dedicated spectrum and the mobile operators will lobby the Authority for a spectrum auction to increase WiMAX operator’s cost. 3) The convergence of broadband wireless access technology and triple play service will shift the current vertical supply chain to a horizontal convergence in the future supply chain.
Key words: Fixed telecommunication service industry, mobile telecommunication service industry, ISP, Game, Value net, co-opetition, WiMAX
Subjects
固定通信產業
行動通信產業
網際網路服務產業
賽局
價值網
競合理論
Fixed telecommunication service industry
mobile telecommunication service industry
ISP
Game
Value net
co-opetition
WiMAX
Type
thesis
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