Telecommunications Policy

This book focuses on how media and communications policy is made and what influences its design. It explores the structures and processes in which policymaking takes place worldwide, the factors that determine its forms, influence its elements, and affect its outcomes. It explores how to analyze policy proposals, evaluate policy, and use policy studies approaches to examine policy and policymaking. International in scope, it lays out the variety of political, social, economic, and institutional influences on policy, the roles of industries and policy advocates in the processes, and issues and factors that complicate effective policymaking and skew policy outcomes.

The EU Commission published a second, substantially revised, version of the draft recommendation for the regulation of next generation access networks for public consultation in June 2009. The Recommendation includes a large set of regulatory tools suitable for the emerging NGA environment. This second draft takes into account a large number of comments received in response to a previous EU Commission document of autumn 2008 dealing with the same topic, but with different focal points. The research question discussed in this paper is whether the revised Draft Recommendation is consistent with the current regulatory framework, i.e. whether the approach is an incremental step complementing the existing regulation, or whether the Recommendation lays the foundation for a new and innovative regulatory strategy in the EU. The conclusion of the paper is that the EU Commission aims to continue and further develop current regulation, and that the development of access regulation will remain dynamic, but at the cost of simplicity and straight-forwardness. This approach will test the current regulatory regime's ability to adapt to changes in technology and economic parameters and flexibility to deal with both legacy as well as new networks.

This paper aims to test jointly two economic puzzles: the effect of financial development and Information and Communication Technology (ICT) on economic growth. Theories predict a positive effect of financial development and ICT on growth but empirical studies on these relationships produced mixed results. Further, we investigate the interaction between financial development and ICT Diffusion to test whether the impact of financial development on growth is strengthened by better ICT infrastructure. In this paper we assess empirically these relationships in some MENA countries. The empirical study is based on estimation of a dynamic panel model with system GMM estimators. There are three main findings. First, our empirical results join empirical literature that find a negative direct effect of financial development on economic growth. This ambiguous relationship may be linked to many phenomenons but there are not yet clear explanations of this puzzle. Second, the estimates reveal a positive and significant direct effect of ICT proxies on economic growth. This implies that MENA countries need to reinforce their ICT policies and improve using of new Information and Communication Technology. Finally, the interaction between ICT penetration and financial development is found positive and significant in the growth regression. This implies that economies in Mena region can benefit from financial development only once a threshold of ICT development is reached.

Highlights:  The digital divide measured in terms of bandwidth it not closing  Inequality fluctuates up-and down with technological progress and diffusion  Asia increased its global share in installed bandwidth from 23 to 51 % in 30 years  Bandwidth inequality is closely linked to income, which is notoriously unequal  It is urgent to start measuring bandwidth, not merely counting subscriptions

This paper reports the results of the quantitative analysis of international experience of the relationship between infrastructure investment in the deployment of capacity that can carry large volumes of voice and data traffic and regulatory policy changes in the telecommunications sectors. It looks at the relationship between infrastructure investment for these infrastructure assets and the access pricing r! egimes for local exchange carriers in the United States and Europe. It then looks at the relationship between various aspects of regulatory and institutional policy changes in Europe and how they affect access prices.

The aim of this paper is to analyze the extent of network effects in mobile telecommunications in Turkey, and to identify other determinants of consumer choice based on consumer survey data. This study shows that there are regional disparities in the adoption of network services in Turkey, the attractiveness of the different networks varies for consumers between different regions. The results show that local network effects are significant for consumer choice. This finding means that consumers are more likely to be affected by the choices of other people within their local area than by the overall size of a network. Furthermore, local network effects also outweigh macro network effects at least in Turkey.

The telecommunications industry is undergoing a radical transformation, creating exciting new opportunities and new challenges for infrastructure and service providers. The established value chain is increasingly being deconstructed, with the entry of powerful new players and radical restructuring of the industry. Rapid technological developments and increasing market turbulences have added new dimensions to an already complex scenario. Many tested business models, as well as related frameworks, tools and techniques, have become obsolete. In this paper, we use recent evidence to illustrate the evolving telecommunications value chains and market structure, examine the underlying theoretical and practical reasons for suc h changes, and highlight the strategic implications for the various players involved. The paper concludes that some of the current changes in the telecommunications market are very radical, and all players need to re-evaluate their market positions and make hard decisions as to where to go next. The value chains are rapidly evolving into value networks, with multiple entry and exit points, creating enormous complexity for all the players involved. Further research is clearly needed to map out the telecommunications value chains and value networks that are possible in the context of the new economy; identify the different players and the possible strategies and business models that they can adopt; develop new conceptual frameworks for understanding the current changes in the telecommunications and related industries; and create new tools and techniques for identifying opportunities and threats and for making new strategies.

"Forming a strategic partnership with Boeing in 2010, Mobile Satellite Service (MSS) provider Inmarsat agreed to invest $1.2 billion to launch its fifth generation of satellites, the Inmarsat-5 constellation (I-5). This new line of satellites will deliver an unprecedented combination of speed, accessibility and diversity when it comes to satellite communications.

With plans to expand services that will compete in new and emerging markets, while simultaneously improving upon core services to maintain its high rate of customer retention, Inmarsat continues to build upon a reputation that has won over 30 international awards for exemplary service in the last seven years.

But how can a company that was founded as a government non-profit, originally operating as a leasing coordinator with no major assets, rise to the prominent position as the world’s leading, for-profit, Mobile Satellite Service provider worth $5.1 billion? Better yet, what were the key business decisions, policy issues, and technical advances which lead to the success of such a drastic transition?

The goal of this paper is to show how the development of Inmarsat-4 satellites (I-4) and their corresponding Broadband Global Area Network (BGAN) services lead to such high-level success. Specific emphasis will be placed on how BGAN allowed Inmarsat to traverse an intricately complex global marketplace immediately following a new age of deregulation at the turn of the 20th  century."

This paper analyzes the diffusion of mobile telecommunications services in Vietnam and examines how telecommunications regulation and potential substitute/complement services affect the growth of the number of mobile telephone subscribers. Using a logistic diffusion model, it is found that fixed telephone services are a complement while data services have a negative relation to mobile telephone services in Vietnam. As for regulation, the policy of introducing competition has been found to be the most effective in influencing the adoption of mobile services. Another important result is that the estimated potential market is roughly 76% of the total population. The findings suggest that suitable regulation that guarantees competition in the mobile telecommunications market in a developing country such as Vietnam is one of the most important factors for a positive diffusion process.

At a recent conference in Botswana on improving human capacity through training and knowledge exchange in the information and communication technology (ICT) sector, a participant spoke about how he had bought a mobile phone set for his mother, who resides in a rural village without basic social utilities like pipe-borne water supply and electricity. 1 Once or twice every week, the man's mother travels about 50 kilometres to and from the nearest town to recharge the battery of the mobile phone. It is stories such as these that have dissipated the euphoria that accompanied the introduction of modern communication technology into underdeveloped contexts. This instance and many like it demonstrate some of the myths that surround the concept of universal access. Providing access to ICT without access to attendant utilities such as electricity, undermines the entire purpose of the exercise. Further, the anecdote does not describe an isolated instance in Africa; millions of people reside in rural and remote villages without electricity and other basic social utilities. Instances abound of multipurpose community centres (MPCCs) and telecentres in rural locales being vandalised and equipment stolen, possibly to be sold to meet more urgent social needs. The assumption that simply making available telecommunications devices in semi-urban and rural areas contributes to increased universal access is erroneous. The challenge for policy makers and national governments in Africa is to develop appropriate policy – policy that enhances the universal diffusion of and access to ICT services by adopting an holistic approach that takes cognisance of the social, cultural and political needs of the community. Undoubtedly, the liberalisation of the telecom market has contributed to an increased teledensity in Africa, particularly evident in cellular phone penetration. For instance, in 2000, smaller countries 1. University of Botswana, 25 May-7 June 2003.

The US media system is primarily a commercial one dominated by a small number of lightly regulated corporations, and offset by weak public alternatives. This was not inevitable ; it resulted from the outcomes of specific policy battles and from specific values triumphing. One way of understanding this logic is to focus on "corporate libertarianism", which emphasizes negative freedoms (freedom from) as opposed to positive ones (freedom for). Historically, much US media law and policy has been framed in negative terms, exemplified by the First Amendment. But there are also largely forgotten traditions that draw from a positive rights discourse. This social democratic orientation privileges media diversity and protects collective rights held by publics, audiences, and communities over the individual rights of corporations. Drawing from historical case studies, this chapter considers media policies for the digital age founded on positive freedoms.

Customer retention (CR), loyalty (CL), and satisfaction (CS) are important (intermediate) goals for telecommunication network operators on their way to superior economic success in the liberalised German market. Therefore, drawing on a sample of 684 residential customers of digital cellular network operators in Germany this study tests hypotheses suggesting that CR, CL, and CS should be treated as differential constructs which are causally inter-linked. LISREL analyses support a two-staged model in which overall CS has a significant impact on CL which in turn influences a customer's intention to terminate/extend the contractual relationship with his mobile cellular network operator (=CR). Mobile service price and personal service benefit perceptions as well as (lack of) number portability between various cellular operators were identified as supply-related variables with the strongest effects on CR. Mobile network operators’ perceived customer care performance had no significant impact on CR. The findings suggest that an important lever for regulators to promote competition in cellular markets is the enforcement of efficient number portability procedures between mobile network operators.

With the advent of new technologies and recent changes in regulations and economies, telecommunications services have grown chaotically. This article describes a taxonomy which uses common terms and concepts to classify the services and features available in telecommunications systems, for planners and policy makers. The structure provides a common basis for Europeans in particular to discuss the formation of new broadband telecommunications networks. It can also be used to identify areas of R&D and to plan future services. As an example, the authors apply the taxonomy to suggest the kinds of elements, properties and rules which might form the basis of a taxonomy knowledge base in telecommunications systems.

The mobile phone industry is a very innovative segment within the ICT sector and the smartphone is becoming the standard configuration among the different types of mobile devices. Technical change and new product proliferation have made this industry extremely dynamic, even if market shares are highly concentrated in the hands of very few companies. The present article investigates whether a dominant design has emerged in the smartphone industry. In particular, it studies the evolution in hardware components relying upon an original dataset of product characteristics including all smartphones launched in the market between 2004 and 2013. Results show that, despite some convergence in the introduction of vertical innovations, product differentiation still characterizes the competition among manufacturers and a dominant design has not yet emerged.

The Nigerian telecommunications industry has continued to grow in a phenomenal manner following market liberalization reforms that commenced in the 1990s. As of 2017, the telecommunications industry was one of the fastest-growing economic sectors in Nigeria and the fourth largest contributor to the country’s Gross Domestic Product. The telecommunications industry, however, remains a highly technical and naturally dynamic industry that has not been a usual area for legal research in developing countries such as Nigeria. This book bridges that gap in knowledge by providing an analysis of the legal and policy instruments that regulate the industry. It comprises eleven chapters that discuss the historical evolution of telecommunications and its regulation; the development of the Nigerian telecommunications industry from 1886 to 2017; the legal basis for the regulation of the industry; the licensing and duties of service providers; the regulation of network infrastructure; the protection of consumers; the regulation of competition, interconnection, universal access, and environmental protection; and the resolution of industry disputes. This book will be useful to policy makers, legislators, regulators, lawyers, law students, investors, operators, and consumers, as well as any person interested in the Nigerian telecommunications industry.

Enthusiasm for the benefits of the information revolution is boundless; it promises to provide economic opportunity, growth and democratic communication. Yet, these promises are fulfilled only to those with access and competence to use these new technologies. Stark international and national contrasts exist between those who have access to the information technologies and those who have not. Despite the increasing attention digital divide issues have received in the public arena, in the academic literature, there is no consensus regarding the appropriate policy to implement. This paper draws on the different policy trajectories recommended by the literature of telecommunications development and uses them as an analytical lens to examine the case of a developing country like Mexico. It explores the underpinnings of the digital divide in Mexico and provides the data that substantiates the concept. The argument in this paper is that the Social Capital concept is useful in the design and implementation of a universal access policy. From this standpoint, the focus of the debate moves beyond short-term supply considerations to dynamic issues such as technological adoption in an asset-based community development.

(VAS) are claimed to be among the most important and fastest-growing parts of the telecommunications industry. However, there is a striking lack of precision in the use of the term VAS. Because of the problems of deflnition the empirical evidence concerning the volume of these markets varies considerably. Furthermore a critical examination of market estimates and forecasts dealing with the topic of VAS reveals that their methodological foundations are weak or non-existent. As for the future development of the various VAS markets, technological factors will shape their structure and content.

MEASURING THE IMPACT OF ICT:
THEORIES OF INFORMATION AND DEVELOPMENT

Telecommunications Policy Research Conference
September 26-28, 2007, Washington, D.C.


Prof. Richard Taylor
Institute for Information Policy
Suite 314, Willard Building
The Pennsylvania State University
University Park, PA  16802
[email protected]

Prof. Bin Zhang
School of Economics and Management
Beijing University of Posts and Telecommunications
10 West Tucheng Road, Haidian District
Beijing 100876, China
[email protected]


Abstract

It is widely asserted that, “information and communication technologies (ICTs) have positive impacts on the economic, social, and political development of a country, region, or community” (TPRC Call for Papers: Societal Issues).  While that is easy to assert, it is far from easy to quantify it in a way that yields an explanatory and predictive theoretical understanding which can be applied to information policies.  Yet many international organizations and economies consider this a critical foundation for effective information policy-making.

Governments around the world are investing large amounts of precious capital attempting to realize the benefits of ICTs, and working to ensure widespread access to their networks and their applications.  But their level of empirically-based policy guidance is low.  Policy studies are indeed important for determining appropriate regulations, policies, and levels of public and private investment, but much policy is not informed by theory-based research and testable hypothesis developed from significant amounts of data.

This paper adopts the following structure.  It reflects first on how the measurement of information indicators to understand modern reality has been a constant theme woven in and out of the scholarship and policy discourse of the last forty years, and questions what exactly is being “measured”.  It describes the current surge of international projects in this field, and the underlying reasons for supporting governmental engagement.  It notes the methodological challenges, and presents examples of models used to study, on the one hand, the “digital divide” (e-society) and on the other, commercial opportunities (e-readiness).  It notes the absence of an applicable meta-theory of information.  It describes the initiatives led by the WSIS, the ITU, the OECD, and the efforts to develop an “integrated” model.  It concludes that despite the challenges and limitations, useful and practical policies can be developed using available tools, and presents the case of China as an example.  Based on this, it proposes that studies of information metrics should receive greater attention from American scholars, and be a part of the model of a broader vision of ICT policy in society and the economy of the next presidential Administration.

KEYWORDS: Information, informatization, infometrics, measurement, statistics, strategy, China, e-readiness, methodology


Where is the wisdom we have lost in knowledge?
Where is the knowledge we have lost in information?

T.S. Eliot, The Rock

Pada saat awal ditemukan, komputer hanyalah sebuah mesin besar dengan kemampuan yang terbatas. Tetapi setelah mengalami perkembangan dan pemutakhiran dalam waktu yang relatif singkat, komputer menjadi sebuah mesin popular dengan banyak kemampuan, orang menjadi tertarik dan mengalami ketergantungan dengan komputer. Apalagi setelah internet ditemukan. Perkembangan komputer menjadi semakin pesat dalam waktu yang relatif singkat. Ada banyak keunggulan internet, begitu dengan pula bahaya yang diakibatkan oleh internet, kejahatan melalui internet atau yang lebih dikenal dengan Cybercrime, bermacam-macam jenisnya seperti; virus, penolakan akses dan sebagainya. Kerusakan yang disebabkan oleh Cybercrime sudah tak terhitung lagi tetapi hukum yang secara khusus menangani Cybercrime di Indonesia belum sepenuhnya berjalan. Beberapa pasal Kitab Undang-undang Hukum Pidana (KUHP) dapat digunakan untuk menjerat pelaku kejahatan yang berhubungan dengan komputer atau internet, meskipun tidak dapat berlaku untuk semua jenis kejahatan Cybercrime yang ada.Hambatan bagi proses penyidikan Cybercrime terkait dengan Undang-undang, kemampuan perangkat hukum, alat bukti dan fasilitas pendukungnya. Langkah-langkah yang dapat diambil untuk menyelesaikan masalah penyidikan Cybercrime antara lain; menyempurnakan undang-undang tentang Cybercrime, melakukan training Cybercrime pada penegak hukum secara berkelanjutan dan membangun divisi khusus penyidikan Cybercrime yang lengkap serta menggalakkan dan mensosialisasikan pencegahan Cybercrime secara luas

In 2009 the European Parliament and the Council went forward with the creation of a Body of European Regulators for Electronic Communications (BEREC), which formed part of a broader Telecoms Reform package. The questions we will aim to answer are: was BEREC the right move? Did it replace the ERG efficiently, and has it accomplished the goals it was intended to?

Penyebaran operator telekomunikasi seluler dan operasinya dapat menyebabkan biaya yang sangat tinggi dan waktu masuk yang lama ke pasar bisnis. Berbagi infrastruktur Jaringan LTE dan mengadopsi teknologi virtualisasi jaringan sangat penting untuk mengurangi biaya modal dan operasional jaringan seluler di masa mendatang. Namun, jumlah implementasi yang tersedia secara terbuka dan realistis untuk mempelajari dan meningkatkan teknologi berbagi tersebut tidak ada. Gambar 2. Perbedaan Antara MORAN dan MOCN Multi Operator Core Network (MOCN) merupakan model untuk peningkatan efisiensi pemanfaatan spektrum frekuensi radio yang hampir sama dengan Multi Operator Radio Accesss Network (MORAN). Pada model MORAN menggunakan frekuensi sharing sehingga di level cell dan site bersifat default sedangkan MOCN di level Core Network (CN) dapat diatur sesuai sistem masing-masing operator seperti pada gambar 2. Gambar 2. Perbedaan antara arsitektur MOCN dan MORAN

This paper charts the development of telecommunications in Bhutan. Since the introduction of telecommunications services in 1963 Bhutan has faced many challenges as it has sought to roll out a network that covers the whole population and country. A small population, a mountainous geography, a transitional economy and a unique approach to development—Gross National Happiness—present many challenges that need to be overcome if the telecommunications industry is to develop further. Added to this is the decision of Bhutan to join the outside world through membership of the ITU, APT and WTO that has added liberalisation and privatisation to the challenges faced by Bhutan. This paper identifies two broad policy options that Bhutan could adopt—network expansion nationally or investment concentration towards urban areas. The authors conclude that due to the limited resources available to Bhutan these policies are contradictory and will take the telecommunications industry in quite different directions if adopted.

This paper compares barriers to entry in the broadband markets between the U.S. and South Korea. First, it explores economic conceptions of barriers to entry from the economics literature. Second, it speculates on how the conception of barriers to entry has been dealt with in the telecommunications industry. It clarifies the various industrial factors that could prevent, or make it difficult, to successfully enter the residential telecommunications market. Third, it introduces an analytical framework that can be adopted for evaluating the barriers to entry. Fourth, employing that framework, it examines the broadband markets in the U.S. and in South Korea, focusing on barriers to entry in multiple broadband access platforms. Both the U.S. and South Korea have shown greater barriers to entry in wireline broadband markets such as cable modem and DSL compared to wireless broadband when it comes to a facilities-based entry. South Korea has offered more opportunity to non-dominant ISPs as new entrants and thus, has been able to facilitate more vibrant competition nationwide. This paper concludes with an analysis of the barriers to entry for alternative broadband access platforms in residential high speed Internet services, more specifically, wireless access technologies, including other economic and policy factors in the US and South Korea. The sluggish progress of intermodal and intramodal market competition explains a part of the sluggish demand in the residential high speed Internet access market in the U.S., while the South Korean market was able to grow rapidly due to fierce competition in the market, mostly facilitated by the Korean government’s open access rule and policy choices more favorable to new entrants rather than to the incumbents. Furthermore, near monopoly control of the residential communications infrastructure by cable operators and telephone companies manifests itself as relatively high pricing and lower quality in the U.S. The more favorable terms from which the dominant providers have benefited, and government’s deregulation, may limit business opportunities for other Internet service providers.

The Bedouin are the indigenous people of the southern half of Israel – the Negev (in Arabic: Naqab) dessert. The 230K population constitutes 3.5% of the Israeli population and close to 30% of the population of the Negev. Yet, despite their centuries’ old ancestral roots in the region, since the founding of the state they have been systematically discriminated against and deprived of basic freedoms and rights, among them partaking in egalitarian policy discourse regarding their own livelihood, including the equal opportunity to utilize network communication technologies in their towns and villages. More than 60,000 of them live in “unrecognized” villages, which the State Comptroller has described as “insufferable conditions.” This first-of-its-kind inventory of wireless services available to the Bedouin community demonstrates empirically the combined effect of discriminating state policies and industry neglect of a poverty-stricken and systematically marginalized community. Incorporating critical analyses of policy documents, systematic mapping of infrastructure and facilities, and industry responses, this study paints a picture of exclusionary practices and the way they are implemented and justified in the digital wireless media industry. The empirical data consists of: 1. Official universal service and mobile deployment standards as dictated by law, regulations and licenses. 2. Levels of connectivity to wireline services in Bedouin towns, both “recognized” and “unrecognized,” compared with each other, with neighboring Jewish towns and with national averages and standards. 3. Levels of connectivity to wireless services in Bedouin towns as compared to neighboring Jewish towns, taking into account the number of towers/transmitters in each locality and the density of the population. 4. Mapping of the Bedouin “diaspora” and measures of the distance between towers/ transmitters and villages. These measures, using official location maps provided by the ministry of environmental protection, are divided by different service providers. 5. Quality of service, determined by fieldwork in which transmission and reception of signals were measured, identifying deployment of the different “generations” of mobile services. 6. Official positions and reactions of industry and operators regarding service provision to Bedouin towns and villages. Initial findings indicate: 1. None of the Bedouin towns are served by the cable industry. Landline penetration among the Bedouin is significantly lower than among Jewish towns. 2. There is a large variation in connectivity levels to broadband among Bedouin towns. It ranges from 10% in Tel-Sheva to 45% in Rahat. The national level of broadband penetration in 2014 was over 71%. 3. There is large variation in number of cellular towers/transmitters per capita among the Bedouin “recognized” towns, ranging from 1/3,000 residents in Kseife to 1/9,400 in Hura. 4. There is a dramatic difference in the number of towers/transmitters between Jewish suburbs and Bedouin towns. Some Jewish settlements have as many as 1 tower per 157 residents (Shoval and Nevatim). The lowest rate being 1/1,775 (Meitar). 5. In the “unrecognized” Bedouin diaspora, the distance of the closest tower to a village can be as much as 7 kilometers. Of the 52 villages only 2(!) are less than a kilometer away from the closest tower.

This dissertation provides a political-economy analysis of Turkish telecommunications policy in the period of outward-oriented development after 1980. The dissertation combines the findings of the telecommunications policy research agenda with a structural analysis of global capitalism to better grasp policy formation in middle-income peripheral countries in the context of international financial crises and fluctuations and to shed light on real-world mechanisms of capital transfer. The dissertation analyzes Turkish telecommunications policy after 1980 in two periods. The first, between 1980 and 1994, was characterized by a public telecommunications leap. In this period, policy-makers prioritized the use value of telecommunications. The second is the period after 1994 and was characterized by privatization for revenue maximization. It was a period in which policymakers prioritized the exchange value of telecommunications.
As case studies, the dissertation analyzes the introduction of private capital to the mobile telephone segment in the 1990s, the advent of foreign capital through the introduction of another private operator in 2000, and the privatization of Türk Telekom in 2005. With respect to these case studies, the dissertation focuses on the political mediation of capital movements from the core to the periphery, the lobbying of core governments, and the role of the political forum as an essential mechanism of dispute settlement.

Good Governance Africa's offices were in the dark September 4th and 5th. A power outage spread across large parts of Johannesburg, leaving offices, homes and shops without electricity for several days. This outage was the result of a labour dispute. But South Africans have become inured to periodic blackouts since 2007, a result of years of government's underinvestment and neglect of the country's power grid. Our occasional inconveniences pale in comparison to the daily tribulations endured by the majority of Africans. Smooth roads, safe water, reliable electricity and fast internet remain pipe dreams for most. Power outages and deficient, dilapidated or absent transport connections are a daily reality.

Sub-Saharan Africa ranks among the top regions in terms of growth in the number of mobile phone users. The success of mobile telephony is attributed to the opening of markets for private players and lenient regulatory policy. However, markets may be increasingly saturated and new regulations introduced across Africa could also have a negative impact on future growth. Since 2006, the majority of countries in the region have introduced mandatory registration of users of prepaid SIM cards with their personal identity details. This potentially increases the costs of using mobile telephony. I present a …xed e¤ects model for the estimation of the impact of mandatory registration on mobile penetration growth, which is based upon a panel dataset of 32 countries in Sub-Saharan Africa for the years 2000 to 2010. The results show that the introduction of mandatory registration depresses growth in mobile penetration. JEL-Classi…cation: L96, L98, D18.

Highlights
First-of-its-kind inventory of wireless services available to the Bedouin community.
Findings indicate that none of the Bedouin towns are served by the cable industry.
Landline penetration among the Bedouin is significantly lower than among Jewish towns.
There is a large variation in connectivity levels to broadband among Bedouin towns.

This paper examines how three incumbent mobile network operators (MNOs) in Germany responded in terms of their strategy to the emergence of the wireless local area network (W-LAN) technology and how they interpreted this potentially disruptive technology in their own strategic context. Additionally, prior empirical results and forecasts on the limited disruptive potential of W-LAN for the German MNOs lacked persuasive firm-level evidence to distinguish the real reason for the presented observations and analysis. So far it was unclear whether the observations were caused by successful response strategies of incumbent MNOs or by the inherent limited disruptive potential of the W-LAN technology. For this purpose case studies of three major MNOs in Germany were performed to assess and compare their respective response strategies. Using the theoretical framework of disruptive technology, the results were evaluated in a cross-case analysis to study how these firms interpreted and reacted to the potential disruptiveness of W-LAN. The results indicate significant differences for the respective MNOs between their perception of W-LAN as a potential disruptive technology, their strategic development processes inside the organisation to understand the potential impact of W-LAN on their respective business model, and to enforce an appropriate response strategy and structural implementation. This incumbent heterogeneity depends primarily on their idiosyncratic strategic and structural context. These findings reveal that the incumbent MNOs in Germany were aware of the disruptive technology concept but did not react in a theory-conform way. However, since W-LAN had a sustaining impact on the MNOs and their response strategies followed sustaining reaction patterns, earlier studies, which show a limited disruptive potential of W-LAN for the German MNOs, are supported.