Competition between regional standards and the success and failure of firms in the world-wide mobile communication market

Telecommunications Policy

Volumn 22, Issue 4-5, 1998, Pages 419-441

  Funk, Jefrey L ^a  

^a KOBE UNIVERSITY   (Japan)

Author keywords

[No Author keywords available]

Indexed keywords

COMPETITION; STANDARDS; TELECOMMUNICATION EQUIPMENT; TELECOMMUNICATION SERVICES;

REGIONAL STANDARDS; WORLD WIDE MOBILE COMMUNICATION MARKET;

MOBILE TELECOMMUNICATION SYSTEMS;

EID: 0032063908     PISSN: 03085961     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0308-5961(98)00024-X     Document Type: Article

References (49)

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3. For a discussion of the reasons behind the success of Ericsson, Motorola, and Nokia, see (Funk, 1997).
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18. Yano Economic Research Institute Mobile Communication Market (Mobairu komyunikeshon soshijo), Tokyo, Japan, 1996.
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23. 11
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25. The cost effectiveness of PHS is debatable considering the deficits being run by the PHS operators. The PHS operators are unfortunately dependent on NTT's wireline system which is one if not the most expensive wireline system in the industrialized world. As a result, the PHS operators pay half their revenues to NTT. Nevertheless, there is widespread agreement that the capital costs for PHS are lower than that for existing cellular systems in high-density areas. Not only are switching stations not needed but PHS base stations are much less expensive than existing cellular base stations. For example, a PHS base station that covers a 100 m radius can handle three calls and costs about $2000 to implement. A cellular base station that can handle 100 calls costs about (covers an area with a radius of 1 km) $IM. Therefore, the base station cost per potential call is $600 for PHS and $10,000 for cellular. In low-density areas, where coverage not capacity is the issue, cellular systems have a lower capital cost per subscriber.
26. The major differences between the three standards are in channel spacings, the number of time slots per channel (the number of calls per channel), and the number of cells which cannot be reuse the same frequency. Although DAMPS as compared to 1 time slot per channelw ith AMPS. PDC, like TAGS, has 25 kHz channel spacing but like DAMPS, there are three time slots per channel. GSM has 200 kHz channel spacing and 8 time slots per channel. Further, with GSM the number of adjacent cells in which the same frequency cannot be reused is 1/3 that of PDC.
27. Financial Times conference on world mobile communication, Financial Times, 9, November 1986, p. 12.
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29. Nikkei Shinbun, Forecasts of introduction to Asia and South America and the fast development of dual-mode handsts (Ajia, nanbei donyu mikomu, fukugo tanmatsu kaihastu isogu - meka, yushutsu honyo). 2 February, 1997, p. 1.
30. Personal communication with Ahti Vaisanen, Vice President of Third Generation Technology, Nokia Mobile Phones, 12 December, 1997.
31. Personal communication with Olav Stang, President of Nokia Mobile Phones Japan and former President of Nokia Mobile Phones, Eastern Europe, 12, December 1997.
32. Paetsch, M., Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets. London 1993.
33. Hulten, S. and B. Molleryd Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. ref. 10.
34. Paetsch, Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. ref. 20
35. Paetsch, Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. ref. 20
36. Paetsch, Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. ref.
37. Meurling and Jeans, Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. Ref. 26.
38. Paetsch, Artech House, the Evolution of Mobile Communications in the US and Europe: Regulation, Technology, and Markets op. cit. ref. 20
39. Financial Times, 27 March, 1985.
40. Paetsch, Financial Times, op. cit. ref. 20.
41. Amukadari literally means descent from heaven. It is used when high ranking government officials take a corporate position.
42. Personal communication with NTT Docomo official who wishes to remain anonymous and Wakabayashi, H., Japan's revolution in wireless communications. Nomura Research Quarterly, Autumn 1994, 22-57.
43. Nikkeishinbun, Japanese firms are late in entering the European digital phone market due to the rection against Motorola's patent rules (Dejitrau keltai denwas, nihonsei, oshu sannyu ni deokurc - tokyo ruru ni ei motorora nado hanpatsu). 13 September, 1994, p. 11.
44. Personal communication with Dr. Martin Hallerdt, Senior Manager, Telecom Standards and Regulations for Nippon Ericsson K.K. Although PDC has 1/3 the channel width per call (25 kHz for 3 calls) of GSM (200 kHz for 8 calls), with GSM (although the actual numbers change with the sixe of the cell, the ratios of cells for PDC. For example, for the same cell size, PDC requires 21 adjacent cells to use different frequencies vs. 7.5. cells with GSM do not change). Further, GSM includes the concepts of micro-cells within macro-cells where different frequencies are used in both the micro- and maro-cells. This enables GSM to effectively use the frequency spectrum in the areas of a city which have the highest traffic. Smart Tone has this type of GSM system operating in Hong Kong.
45. See Prestowitz, C.Y, Trading Places: How we Allowed Japan to Take the Lead. Basic Books, New York, 1988 and
46. Johnson, C., MITI and the Japanese Miracle, Stanford University Press, Stanford, 1982.
47. Nihon Sangyo Journal, NTT Docomo has announced its plans for wide-band CDMA service beginning in 2000 (kotaiiki CDMA, 2000nen ni shoyo sabisu, NTT Docomo - suishin keikaku wo happyo), 4 April 1997, p. 7.
48. NTT Docomo requires its handset suppliers to wait about six months before they sell their newest handsets to other carriers. For example, see Nikkei Shinbun, Anxieties about Docomo's Technology Monopoly in the 10 Years of Dominating Mobile Communication. The Obstacle of Allowing Outside Sales (Ido denwa kokufuka dekiruka 10 men no yugami docomo no9 gijtsu dokusen ni kenmei - gaihan kyodaku kabe), 17 August, 1997, p. 9.
49. Ericsson's home page: http://www.ericsson.com/BR/reflist/and the US DOC op. cit. ref. 11.