European mobile markets and the doctrine of "4 networks good, 3 networks bad". Issue 5 (8th August 2016)

• Record Type: Journal Article
• Authors: Curwen, Peter; Whalley, Jason
• Is Part Of: Info. Volume 18:Issue 5(2016)
• Page Start: 1
• Page End: 23
• Publication Date: 2016-08-08
• Subjects: Competitive strategy -- European Commission -- Mobile networks -- Concentration ratios; Telecommunication -- Periodicals; Mass media -- Periodicals; Information policy -- Periodicals; Information technology -- Periodicals; 384.04105
• DOI: 10.1108/info-05-2016-0021
• Languages: English
• ISSNs: 1463-6697

Abstract

Abstract : Purpose: In light of the recent European Commission decisions that clearly favour the maintenance of a four-network structure in European mobile markets, the purpose is to provide an empirical examination of the case for and against such a structure. Design/methodology/approach: A table of concentration ratios in 35 sample European markets is constructed and is followed by a detailed analysis of all relevant merger/takeover cases since 2012. These are then used to provide a general analysis of the desirability of further consolidation in the European mobile sector. Findings: Although the relevant investigatory bodies claim to have made out a watertight case for the maintenance of existing structures, the paper explains why these claims should be met with some scepticism, especially in light of the development of "quad-play" in all markets. Research limitations/implications: When a decision is made on a market structure, it is pointless to pursue the "but what if?" alternatives any further. However, it should be possible in a few years' time to assess whether the Commission's predictions have come to pass. Originality/value: As the UK decision has only just been delivered, the only commentary so far has had a narrow focus, whereas this paper seeks to provide useful and relevant background data about the structure of markets and technological developments.