This paper analyzes empirically whether and if so to what extent later entrants in the European mobile telephony industry have a disadvantage vis-à-vis incumbents and early mover entrants. To analyze this question a dynamic model of market share development and a series of static models are considered. There is clear evidence of early mover advantage, mainly caused by the influence of the penetration rate: it pays to enter when still few people have acquired a mobile telephone. Another important determining factor is the Herfindahl–Hirschman Index at the moment of entry: it is significantly easier to enter a highly concentrated industry. Finally, there are important differences between countries, possibly indicating the relative strength of the national regulators.

Additional Metadata
Keywords early mover advantages, entry, mobile telecommunication
Persistent URL dx.doi.org/10.1016/j.telpol.2007.08.006, hdl.handle.net/1765/16416
Citation
Bijwaard, G.E., Janssen, M.C.W., & Maasland, E.. (2008). Early mover advantages: An empirical analysis of European mobile phone markets. Telecommunications Policy, 32(3-4), 246–261. doi:10.1016/j.telpol.2007.08.006