We face major challenges in a world that is constantly changing. the level of competition in
in order to prevail in an increasingly tough international competition, we need innovative enterprises and industrial environments throughout norway. our enterprises are
ï High competition Step 5: After completing the SWOT matrix the SWOT participants had a wider view of the situation at
technologies of the providers or of the competition, of new ideas ï When present problems in the system overwhelm us
-of-proportion individual rewards may create a cutthroat environment for competition that over time is
-tracting customers and coping with the new competition One of the possibilities that was considered was to have developed a webpage,
whether the approaches taken by the competition could be feasibly adopted. Benchmarking thus enables organisations to compare
the gradual increase of the competition has forced all business to adopt New Product Development NPD) as a necessary and unavoidable business practice.
"delivering a winning solution (answering"can we beat the competition?";"and applying project and process planning (answering"can we do it?".
promoting fair competition and honest trade practices, encouraging creativity, and promoting more aesthetically attractive products
your idea for competition purposes whether it be producing or selling unless otherwise stated in the
ï Competition ï Business management ï Financial management ï Marketing strategy ï Sales forecast Why and Where
Market and competition First of all, the market should be defined, as well as the target group which the project is aiming at
what the competition is offering. What gives you the edge Intellectual property rights Due to the creative aspect of innovative products or services, it is essential to establish proper protec
ï Increasing internationalisation and globalisation of the markets, high competition pressure ï Decreasing product life cycles, increasing innovation speed
top of the competition The human resource becomes a decisive factor in the innovation ability of enterprises
Networks are a growing success and competition factor in industry and generally in society They are the answer to a structural change towards an information society.
competition. A cooperation in the form of a network can contribute greatly to the ability for in
in order to gain competition advantages jointly and in a coop -erative way ï †the joint efforts yield innovative products, processes and services
Innovation networks as a source of competitions advantages: this paper shows the importance of innovation networks as a relevant form of organisation for the development but also the
The answer which was given was that international competition in a globalized market makes the im
7. Hold intercultural †fun†days that include competitions that test your intercultural knowl -edge and skills, demonstrate different customs, food etc
have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMES) are no more immune to the challenges that the
ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMES) are no more immune to the
-oriented competition from low-cost producers from emerging economies, on home turf and abroad (Tiwari et al.
At the same time, the increasing globalization is bringing in more competition in the home market, the traditional stronghold of many SMES.
and find themselves faced with tough price-oriented competition from low-cost producers from emerging economies in Asia and Eastern europe
over 230 years back in 1776, blocking international competition is not a solution to such
For the increased competition is ultimately beneficial for the consumer in the form of cheaper and/or better goods and services. â€oeconsumption is the
competition, risk-taking and appropriate financial returns on successful ventures can particularly affect small and medium-sized
competition, the capability to control the innovation and manage the innovation processes has become extremely
make competition irrelevant. Boston, MA: Harvard Business school Press 5 Hamel, G. 2002. Leading the revolution:
competition successfully by developing new and more profitable businesses through networking among innovation partners ï Professional open innovation management by SMES
and can make a business stand out among the competition. However, the lack of design management skills is a significant barrier to the wider adoption and integration of design into
competition in order to survive, particularly in younger and high-technology industries where competitive pressure and firm churning are high.
competition, financial markets and bankruptcy laws. The  OECD 2004 9 PROMOTING ENTREPRENEURSHIP AND INNOVATIVE SMES IN A GLOBAL ECONOMY
competition, the regulatory framework, the tax system, labour markets, financial markets and bankruptcy laws should take account of the way these areas
expose them to heightened international competition from foreign firms, and may result in the loss of traditional
markets to lower-priced competition from overseas Challenges and threats may concern the following: standards
and competition in network infrastructure should continue and be strengthened, †Rollout and use of quality infrastructure at affordable
effective competition and continued liberalisation in infrastructure, network services and applications across different technological platforms;
inhibit competition Figure 4. Internet penetration by size class, 2001 or latest available year Percentage of businesses using the Internet1
infrastructure and promote broadband competition and liberalisation in network services and applications. Where the needs exist,
private initiative or inhibiting competition, complement private investment with public financial assistance to expand coverage for under-served groups and
We find that international competition fosters R&d intensity especially for high-tech firms. Firm size, R&d intensity,
competition, more than 42%of the firms in the sample have national competitors, while 18%and 14%have European and international competitors, respectively.
competition fosters R&d intensity, especially in high-tech firms. Also, R&d has a strong and sizeable impact on firm†s ability to produce process innovation, and a
global competition in this sector became increasingly tough. Even if a supplier has some proprietary technology, the power of the large buyers such as GM and
and to create subtle barriers to competition Indeed, this new low-cost digital freedom may even provide smaller companies advantages
The database also builds barriers against competition. For example, Chemstation solved a cleaning problem at a Harley davidson plant within its shock absorbers
Capability and competition are added as part of this gate, but mostly for new product or new product/service combination ideas
and (2) avoid direct competition. Segmentation can be done qualitatively or quantitatively. Qualitative segmentation usually requires managers to
•Competition can be a disincentive, with participants believing that their personal promotion, status, raises, etc. may be lost
Competition and cooperation: Italian SMES go international, CIRPET -University of Turin Discusses internationalization, and specifically the weaknesses of SMES
7. Confronted with lower cost competition in foreign locations, producers in the high-cost countries
10 Tom Peters,"New Products, New Markets, New Competition, New Thinking,"The Economist, 4 march, 1989
which leaves it vulnerable to competition from more technologically advanced companies. Customers eventually reward technological leaders that can
region, and (2) the degree of monopoly versus local competition 49. One model suggests that a concentration of firms within a particular industry in a geographic
There is also theoretic debate about the effect of competition on innovative activity. The Marshall-Arrow-Romer model predicts that local monopoly should be superior to local competition
13 Saxenian (1990, pp. 97-98 14 For an extension of this see Vernon (1994) and Vernon et al.
competition is more conducive to the generation of knowledge externalities than is local monopoly. 15 Not
only does a large number of firms result in greater competition for new ideas, but it also facilitates the
and local competition did positively influence industry growth rates in US cities from 1956-1987 (Glaeser et al.
In addition, the results of this study indicate that local competition for new ideas within a city is more conducive to innovative activity than is local monopoly.
More specifically, regulatory policy, competition antitrust policy, and the public ownership of business are on the decline.
Competition and Innovation, †European Economic Review, 43,409-429 Feller, I.,1997, â€oefederal and State government Roles in Science and Technology, †Economic
Van dijk, Meine Pieter, 1995, â€oeflexible Specialisation, The New Competition and Industrial Districts, †Small Business Economics, 7 (1), 15-28
The dynamics of industrial competition. Cambridge, Massachusetts Cambridge university Press Baldwin, C. and Clark, K. B. 1997.
Schumpeterian competition. Bell Journal of Economics 9 (2), 524†548 Nelson, R. and Winter, S. 1982.
Competition, strategy, and the structure of returns in the Internet economy. Journal of Economics & Management Strategy 14 (1
weapons of competition The revitalizing potential of an innovation thus does not last forever. It runs out, which
Innovation is often in competition with other business functions for this investment To address this challenge,
Competition effects: Another important concern is the prescription for a policy-induced division of labour between leading
agriculture, may deepen interregional disparities though the reduction of competition and market/merit based selection.
Indeed, some â€oeduplication†is a side-effect of competition and may be beneficial from a societal point of view
out that smart specialisation depends on good general framework policies (e g. competition, trade policy labour market policy and education and skills) and horizontal innovation policies (e g.
and competition failures but also opportunities to shift the direction of innovation towards global challenges; and to help build the policy tools for smart
focused on a combination of structural reform policies-labour reform, competition policy, tax policy, etc and efforts to preserve investments in knowledge based assets such as education and innovation especially
in light of challenges such as demographic change and competition from emerging economies The second trend which has created a fertile ground for smart specialisation,
The quality of institutions such as government institutions (e g. rule of law, competition, security social institutions (labour-employer relations) also affect factor endowments
Imperfect competition, product market and labour market conditions can influence the degree of market integration Industrial policies (e g. taxes and subsidies) can also play a role in shaping the production structure, for good or
In Australia, the exposure of the grains industry to international competition ensures that innovation driven
industry to international competition ensures that innovation driven productivity growth is a consistent grower priority
iii) international competition; and iv) The Australian Government invests significant resources to increase food security in other countries as part of its aid budget.
markets subject to globalisation and strong international competition. One of the challenges ahead is to translate the Brainport 2020 vision
segments of standardized goods and services with high price elasticity and increasing competition from countries with even lower production costs (e g.
nascent cluster structures is underpinned with a growth-and competition-oriented basis by innovation policy instruments.
Another initiative of both States is the common Business plan Competition. Thanks to know -how transfer, coaching, networking and competition,
the â€oeentrepreneurs to be†are supported through the transformation of their idea into a commercial concept
position in an international competition. A professional management will ultimately ensure that the cooperation and project structures within a cluster are expanded strategically,
A NIP is about stimulating innovation, competition and investment in know-how; it is not only about
greater sales or margins and/or retain more customers than its competition. There can be many types
especially the growing competition of foreign products and services once the commercial barriers had fallen Romanian SMES are the one of the most affected area.
are aware of the fact that as the competition increases within each activity field, innovation represents an
competition force SMES to search for new, innovative, flexible and imaginative ways to survive Therefore, the above statement provides a relationship between innovation and SME survival
competition had a strong negative effect, on organizational innovations. Moreover diversification was associated with more innovation.
heavy competition isnegatively associated with innovation, and showed that this was more in the case for process and organizational innovations than for product and marketing innovations
included the level of competition and extent of customer options, geographical co-location, inter -organizational associations and communities of practice, partnerships and alliances, the
Italy are able to lay claim to a prominent position in international competition by making well-considered use of their comparative advantages.
property rights, how to strike the balance between competition and cooperation, what are the implications for the †corporate culture†of the far more porous character of the
some success they are clipped around the ears and accused of †unfair†competition. The observation made by Hendrik Snijders in his dissertation †The One-dimensional Scienceâ€
a competition between mutually relatively independent organisations and/or technologies The approach taken by Arthur 50 in his †Competing Technologies†clearly illustrates this
Collaboration and competition within and among networks, as well as the question of what the consequences are for the strategies of
the development of rules (and legislation) regarding competition and collaboration in networks, resulting in the public knowledge infrastructure becoming effectively integrated
competition is transformed into a bilateral transaction. In such a situation, vertical integration is adapted best to avoid
•Information is the nerve of competition which sets up among firms. Nevertheless, the complexity of
globalization and increased competition (Rahman & Ramos, 2010. Alternatively, †closed innovation†refers to the processes
As respondent#1, 5 and 53 note, this has reduced global competition to a few comparable locations, especially in Thailand and the Philippines.
firms that won design competitions (resp.##3, 5, 8, 14,16 of the qualitative survey) are all (very) innovative, just like
competition. International acquisition requires capabilities such as speaking foreign languages and concrete activities such as travelling and observing.
exhibitions, competitions and trade fairs. They potentially open up new market avenues Exporters learn most from new clients,
competition. Therefore, your whole range of products must be interesting. I offer every natural stone from Indonesia.
Design competitions play an important role in gaining brand reputation. However, to be regarded as a modular player,
many design competitions. In 2011, KREO won 6 of the 15 design prices in Indonesia.
safeguard competition and the dynamics of innovations Access to essential medicines Discussions in the project took into
legislation on trade secrets and/or unfair competition for the protection of their confidential business information.
secrets and/or laws on unfair competition that also deal with protection of trade secrets. There is a
modes of transport and competition between modes However, while numerous national platforms have been created, only limited attempts have been made to build
competition that Europe faces in the coming decades, it is crucial that Europe find a way to
been protected from competition Finally, Europe needs to be vigilant about â€oedoing no harm. †At this stage the large benefits
larger markets mean more competition, which in turn spurs firms to invest more in order to innovate and cut costs.
competition, more integrated European markets, and openness to trade as potential ways to increase ICT-based productivity. 137
barriers, and encouraging competition in distribution channels will help promote use as much as any specific efforts to encourage use. †164
goals, they may also function as barriers to competition and are not always worth their
adoption as a worldwide competition for the next new Silicon valley, Europe needs to focus on where ICT can make the most difference:
http://www. france24. com/en/20131003-national-assembly-amazon-book-law-free-shipping-competition -ump-socialist-lang
Facilities-based infrastructure competition 7 Overall assessment 8 Glossary 9 1 Introduction 11 2 Key goals of the Digital Agenda for Europe (DAE) 14
7 Facilities-based infrastructure competition 68 7. 1 The Regulatory Framework and facilities-based competition 69
7. 2 Societal welfare benefits from facilities-based competition 70 7. 3 Facilities-based competition as a stimulus for fibre-based NGA deployment 71
7. 4 Prospects for achieving sufficient facilities-based competition 72 References 75 III FIGURES Figure 1:
Global Internet consumer traffic growth trends over time 16 Figure 2: Global consumer Internet traffic 17
Figure 3: The evolution over time of consumer bandwidth demand during the busy hour 20
Facilities-based competition and NGA deployment 72 IV Rethinking the Digital Agenda for Europe (DAE
-based fixed network alternative to an FTTX network, thus enhancing competition Wireless also functions in a useful complementary role (1) to provide coverage in low
broadband, may be greater in countries where competition is more effective The goals of the Digital Agenda for Europe
rather than a gain in facilities-based competition, is a separate question The Feijoo/Barroso and EIB studies seem to be in reasonably good agreement for Spain
Facilities-based infrastructure competition The European regulatory framework for electronic communications has advocated always an approach to regulation that is,
infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television †and that an altogether backward-looking statement
Cable provides facilities-based infrastructure competition. The value of infrastructure competition is recognised explicitly in the European Regulatory Framework
Infrastructure-based competition is important in the long term. A European network environment where only a single medium provides last mile access is a European network
environment where detailed regulation to address market power is needed forever Cable tends to enjoy low unit costs in providing broadband services at whatever speed
Infrastructure competition is a valuable complement to SMP-based regulation. For instance, it can help to correct for any errors in regulatory price-setting
distinguishes between areas of â€oe2+†competition, where the fixed network, cable and mobile all compete,
versus â€oe1+†competition, where only fixed and mobile compete Facilities-based inter-modal competition,
even if limited to discrete geographic areas may have the tendency to constrain prices to reasonable levels across much larger
fixed network alternative to an FTTX network, thus enhancing competition Wireless also functions in a useful complementary role (1) to provide coverage in low
network, thus enhancing competition â Wireless also functions in a useful complementary role (1) to provide coverage
-based fixed network alternative to an FTTX network, thus enhancing competition The key issues addressed in this study are
be greater in countries where competition is more effective â Caution is appropriate in interpreting any of these results
countries with substantial competition between the fixed telecommunications network and cable. Hungary, where cable competition is strong,
also does quite well by this measure At the same time, countries where cable is absent do not necessarily perform poorly
these differences in broadband surplus are primarily a function of the level of competition A strong cable presence contributes strongly to competition;
however, competition may be weaker than otherwise expected for other reasons (for example, an institutionally weak regulatory system),
or stronger than otherwise expected due to effective use of competitive remedies such as unbundled local loop (ULL
Study on the Implementation of the existing Broadband Guidelines Final Report DG Competition; December 7 available at:
http://ec. europa. eu/competition/consultations/2011 broadband guidelines/index en. html 33 Vectoring has the potential for very significant bit rate increase,
As with any shared medium, competition for resources with other users can introduce delay, affecting the performance seen by the user
savings, rather than a gain in facilities-based competition, is a separate question â The Feijoo/Barroso and EIB studies seem to be in reasonably good agreement
than a gain in facilities-based competition, is a separate question 83.4 55.9 142.4 103.9
7 FACILITIES-BASED INFRASTRUCTURE COMPETITION Key Findings â The European Regulatory Framework has advocated always an approach to
and for infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television †and that an altogether
â Cable provides facilities-based infrastructure competition. The value of infrastructure competition is recognised explicitly in the European Regulatory Framework
â Infrastructure-based competition is important in the long term. A European network environment where only a single medium provides last mile access is
a European network environment where detailed regulation to address market power is needed forever â Cable tends to enjoy low unit costs in providing broadband services at whatever
â Infrastructure competition is a valuable complement to SMP-based regulation For instance, it can help to correct for any errors in regulatory price-setting
areas of â€oe2+†competition, where the fixed network, cable and mobile all compete versus â€oe1+†competition, where only fixed
and mobile compete. Facilities-based inter-modal competition, even if limited to discrete geographic areas, may have the
tendency to constrain prices to reasonable levels across much larger geographic areas Policy and regulation in Europe and in Member States alike have put a strong emphasis
competition have, however, been mixed decidedly to date. NGA deployment in Japan for instance, has come at the expense of a re-monopolisation of the last mile of the
NBN) in Australia comes at the expense of inhibiting inter-modal competition in order to ensure that the NBN can be profitable
7. 1 The Regulatory Framework and facilities-based competition The European Regulatory Framework has advocated always an approach to regulation
Specific Directives, in particular those designed to ensure effective competition, national regulatory authorities do likewise. †Article 8 (5) goes on to say:
safeguarding competition to the benefit of consumers and promoting, where appropriate infrastructure-based competition; †â€
The Regulatory Framework as enacted in 2002-2003 is grounded, moreover at its core in the belief,
or at least the hope, that increasing competition would in time obviate the need for regulation that primarily responds to the presence or absence of Significant
competition. The DAE speaks of the need for â€oe†providing the right incentives to stimulate
infrastructure competition, it is striking that the Digital Agenda for Europe contains only a single reference to cable television †and that an altogether backward-looking statement. 80
7. 2 Societal welfare benefits from facilities-based competition The values of competition are recognised well in the economic literature,
and are a cornerstone of the European Regulatory Framework for Electronic communications Competition tends to promote lower prices for consumers, greater consumer choice
and incentives for service providers to operate efficiently and to innovate Cable provides facilities-based infrastructure competition, in contrast to the competition
provided by means of regulatory remedies based on Significant Market Power (SMP under the Framework. The value of infrastructure competition is already explicitly
recognised in Article 8 of the Framework Directive, which establishes the high-level regulatory principles that National Regulatory authorities (NRAS) are to follow. â€oethe
and proportionate regulatory principles †safeguarding competition to the benefit of consumers and promoting, where appropriate, infrastructure-based competition ††83
Facilities-based competition from cable is not sufficient to enable lifting of regulation from telecommunications incumbents,
but it is a valuable complement to traditional regulatory mechanisms. Notably, since facilities-based competition is market-based,
and does not depend on regulated prices, it can help to correct any possible errors that might be made
7. 3 Facilities-based competition as a stimulus for fibre-based NGA deployment It has long been assumed that the presence of cable serves to stimulate fixed telephony
7. 4 Prospects for achieving sufficient facilities-based competition Deployment of a mix of technologies has the benefit of enabling inter-modal facilities
-based competition in broadband markets A recent analysis of potential NGA deployment in Spain (see Figure 29) 88 distinguishes
between areas of â€oe2+†competition, where the fixed network, cable and mobile all compete
versus â€oe1+†competition, where only fixed and mobile compete. Facilities-based inter -modal competition,
even if limited to discrete geographic areas, may have the tendency to constrain prices to reasonable levels across much larger geographic areas
Facilities-based competition and NGA deployment Source: Feijoo and Gomez-Barroso (2010a. 89 88 Feijoo, C.,GÃ mez-Barroso, J.-L.,Ramos, S. and R. Coomonte (2011a;
-mentation of the existing Broadband Guidelines, Final Report DG Competition, December 7; available at: http://ec. europa. eu/competition/consultations/2011 broadband guidelines
/index en. html Nooren, P.,Marcus, J. S. and I. Philbeck (2012: State-of-the-art Mobile Internet connectivity
share in competition by fining large companies that do not obey EU rules 3. 2 Single Market Act Made Simple
competition and innovation capacity. The purpose of the †Structural Funds†European Regional Development Fund †ERDF and European Social Fund-ESF) is
age of increased competition and more individualised customer demands, constant innovation is needed for businesses to grow
•To lobby nationally for policy guidance in relation to data protection, IP and competition policy to support an open innovation environment for all
competition. For example, in developing countries, fixed-broadband prices could be reduced by 10 per cent and mobile-cellular prices by 5 per cent if competition and/or the regulatory framework
improved. International regulatory best practices, such as the ones adopted by the ITU Global Symposium for Regulators (GSR), may serve as a guideline for effective regulatory frameworks which
Chapter 4. ICT prices and the role of competition...107 4. 1 Introduction...107 4. 2 Fixed-telephone and mobile-cellular prices...
4. 5 The impact of competition and regulation on telecommunication prices...152 Chapter 5. The role of big data for ICT monitoring and for development...
4. 21 Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c.,2008-2013.155
4. 22 Competition in mobile markets and mobilecellular prices as a percentage of GNI p. c
4. 2 Relationship between regulation, competition and prices...154 4. 3 Composition of the variable measuring the regulatory environment...
in competition (i e. the awarding of further licences), lower prices (see Chapter 4) and increased uptake by users.
to increase coverage and competition in the market, which in turn has led to higher adoption rates. 25 Apart from those major improvements in
heated competition among operators offering subsidized smartphones and promotions on mobile data plans. 35 During 2013, operators further
are characterized by a high level of competition and high levels of multi-SIM ownership (GSMA and Deloitte, 2013.
increasing competition in the market. 25 Operators in Slovakia and Romania have extended and upgraded their networks
competition 4. 1 Introduction The price of ICT services constitutes a determining factor for ICT uptake and, as such, continues to be a
affordability and income inequality, competition and regulation. The objective is to single out some salient explanatory factors for the
Chapter 4. ICT prices and the role of competition 108 income distribution stems partly from the tracking
The effects of competition in driving prices down and fostering innovation have been most apparent in the mobile-cellular market, where
competition, and is thus the lever which policy -makers and regulators can use to influence
competition. As a result of all the important elements in the analysis of the affordability of ICT prices, competition and regulation are those
upon which telecommunication administrations may exert more direct control. They therefore merit particular attention This chapter will present
the impact of competition and regulation on ICT prices. Based on an econometric model, a number of conclusions will be presented on the
effects of competition and regulation on mobile -cellular and fixed-broadband prices The results of the latest ICT Price Basket (IPB) are
Chapter 4. ICT prices and the role of competition 110 16.2) per month. 6 This compares with an average
competition †such as fostering inter-operator competition continuing with the glide-path set for mobile termination rates (MTRS)( CCK, 2010
allowing the entry of MVNOS11 and streamlining mobile number portability12 †and policy initiatives to strengthen the demand side
Chapter 4. ICT prices and the role of competition 112 Table 4. 1: Fixed-telephone sub-basket, 2013
Chapter 4. ICT prices and the role of competition 114 Mobile-cellular services are very affordable in
developed world suggests that competition in the market is centred around higher-end users contracting higher speeds and/or fixed
Chapter 4. ICT prices and the role of competition 116 25.8 of GNI p. c. in the developing world at end
This suggests that competition is taking place in other (higher-end) segments of the market
Chapter 4. ICT prices and the role of competition 118 high gross national income (the highest in the
regulatory measures to promote competition and ease the international connectivity bottleneck could help drive prices down to the
Chapter 4. ICT prices and the role of competition 120 Box 4. 1: Challenges for fixed-broadband adoption in Mauritania
Regulatory interventions to promote competition and to improve international connectivity could greatly contribute to stimulating the fixed-broadband market
Chapter 4. ICT prices and the role of competition 122 Chart 4. 9: Fixed-broadband prices as a percentage of GNI p. c. in Asia and the Pacific, 2013
competition and to facilitate backhaul (e g. by setting a reference offer for the leased lines of the incumbent that provide connectivity
entry in the market, and stimulate competition in broadband services. This would contribute to opening up fixed-broadband markets to
competition in Africa, and alter the status quo in several African countries, where the market is concentrated in a single operator.
a much larger degree of competition in other regions, to the benefit of customers Entry-level fixed-broadband prices are below
Chapter 4. ICT prices and the role of competition 124 Table 4. 4: Fixed-broadband sub-basket, 2013
Chapter 4. ICT prices and the role of competition 126 plans are bundled often with mobile voice and
Chapter 4. ICT prices and the role of competition 128 common in developing countries, where fewer
enough competition exists in the market, these lower costs should be passed on to retail prices
Chapter 4. ICT prices and the role of competition 130 Chart 4. 16: Comparison of postpaid fixed-broadband and postpaid computer-based mobile-broadband
Chapter 4. ICT prices and the role of competition 132 Table 4. 5: Mobile-broadband prices, postpaid handset-based 500 MB, 2013
Chapter 4. ICT prices and the role of competition 134 Table 4. 6: Mobile-broadband prices, prepaid handset-based 500 MB, 2013
Chapter 4. ICT prices and the role of competition 136 Table 4. 7: Mobile-broadband prices, postpaid computer-based 1 GB, 2013
Chapter 4. ICT prices and the role of competition 138 Table 4. 8: Mobile-broadband prices, prepaid computer-based 1 GB, 2013
Chapter 4. ICT prices and the role of competition 140 the region mobile broadband is more than USD
Chapter 4. ICT prices and the role of competition 142 broadband prices in terms of GNI p. c.,Chart
Chapter 4. ICT prices and the role of competition 144 Table 4. 9: Fixed-broadband prices as a percentage of household disposable income, selected countries
Chapter 4. ICT prices and the role of competition 146 unaffordable for large segments of the
Chapter 4. ICT prices and the role of competition 148 Table 4. 11: Prepaid handset-based mobile-broadband (500 MB/month) prices as a percentage of
Chapter 4. ICT prices and the role of competition 150 Sweden, there is on average more than one
Chapter 4. ICT prices and the role of competition 152 broadband services: although they represent less
4. 5 The impact of competition and regulation on telecommunication prices The impact of ICTS as development enablers
regulatory actions to promote competition, such as mandating local-loop unbundling or granting 153 Measuring the Information Society Report 2014
of the role of competition and regulation in shaping prices for mobile-cellular (voice and SMS) and
at the effects of competition and regulation on ICT adoption. 41 However, research is more
of competition and regulation on prices, and is limited often in scope because of lack of data for developing countries.
on the links between competition, regulation and telecommunication prices, based on a worldwide representative sample, and to check
-tion, competition and prices The fall in telecommunication prices in the last decade, and in the period analysed in
is competition. In recent decades, there has been a global trend towards the liberalization of
competition in telecommunication services at the country level From the literature on cross-national institutional
Competition directly affects prices in markets where retail prices are deregulated, such as the majority of mobile-cellular and fixed-broadband
Chapter 4. ICT prices and the role of competition 154 indirectly on retail prices through wholesale price
Regulation also affects the level of competition in each market, for instance by dictating the number of licences issued in mobile-cellular
drivers for investment and competition. In addition, regulation can promote efficiency, e g infrastructure and spectrum efficiency, which
regulation on competition (i e. 3 in Figure 4. 2 is considered not, as it cannot be separated
Relationship between regulation, competition and prices Source: ITU from the effects of competition on prices (i e. 1
in Figure 4. 2), which are accounted for by the variables on competition Market competition is one of the main drivers
of affordable prices in telecommunication services. Chart 4. 21 shows the evolution of average entry-level fixed-broadband prices
and competition. The latter is measured using the Herfindahl-Hirschman Index (HHI) for the fixed-broadband market.
The HHI is a measure of market concentration, and is calculated as the sum of the squared market shares (in terms of
competition) to 1 (no competition, with only one operator in the market. The fall in entry
an increase in competition in the period 2008 -2013. Chart 4. 22 shows the evolution of entry
-level prices and competition in mobile-cellular markets, where the decline in prices during the
increase in competition These simple descriptive statistics do not necessarily mean, however, that there is a causal
Competition Regulatory environment Institutional framework Prices Autonomy, enforcement power, mandate and regime of the regulator
Competition & foreign participation allowed by regulation 3 Impact of market competition on prices 1
Legal certainty Level playing field Efficient regulation 155 Measuring the Information Society Report 2014 Chart 4. 21:
Competition in fixed-broadband markets and fixed-broadband prices as a percentage of GNI p. c
prices and competition for the period 2008-2013 Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa
Competition in mobile markets and mobile -cellular prices as a percentage of GNI p. c.,2008-2013
prices and competition for the period 2008-2013 Source: ITU. Herfindahl-Hirschman Index (HHI) data sourced from Informa
competition and the openness of the market to private and foreign investment The scores of each cluster are combined into a
relationship between competition and prices because there are other factors apart from competition that may also have contributed to
improving the affordability of fixed-broadband and mobile-cellular prices in the period 2008 -2013.
competition and prices The model is applied also to measure the link between regulation and the prices of mobile
the competition framework set by the laws and regulations that defines the level of competition in the
different markets (based on what is legally permissible), and the measures to protect 0 10 20
HHI fixed (competition +-H H I fi xe d b ro a d b a
HHI mobile (competition Chapter 4. ICT prices and the role of competition 156 the value, the more conducive the regulatory
environment to ICT developments. For the analyses in this section, data from the Regulatory Tracker have been extracted for clusters 1, 2 and
because it is linked directly to competition, which is considered already in the models through a specific variable on competition (i e. the HHI
The combined value of clusters 1 to 3 is used to test the link between regulation and prices of
Existence of competition authority 9. Appeals to decisions 8. Dispute resolution mechanism 7. Sanctions or penalties imposed by regulator
competition and regulation metrics, using panel regressions with fixed effects Prices for fixed-broadband and mobile voice
to competition much later than mobile services and penetration levels are significantly lower for fixed broadband, especially in the developing
effects of technology choices, competition and regulation. At the same time, parameters like economic development, local geography institutional quality, usage characteristics
•The degree of competition for the fixed -broadband and mobile-cellular markets is captured through the Herfindahl
may provide more competition than several small competitors. For instance, a mobile-cellular market with three players
Chapter 4. ICT prices and the role of competition 158 Box 4. 2: Panel regression models for fixed-broadband and mobile-cellular prices
concentrated, i e. higher HHI values indicate less competition and, conversely, lower HHI values indicate more competition.
Data sourced from Informa Herfindahl-Hirschman Index for mobile cellular (voice and SMS with Li being the number of mobile-cellular subscriptions of firm i,
Competition in the market as measured by HHI is correlated significantly to prices, and the sign
indicates that increased competition reduces prices. The model suggests that changing from two ISPS with 50 per cent market share each to
Chapter 4. ICT prices and the role of competition 160 equal market shares for all ISPS in the market
words, competition was not as strong in the developing world. According to the results of the
competition levels of developed countries, entry -level fixed-broadband prices could be reduced by as much as 10 per cent in the developing
The effects of competition on prices could be particularly beneficial in the 21 developing countries that by end 2013 still had no
competition in fixed-broadband services. Indeed if the fixed-broadband market were liberalized in these countries and a second operator achieved
market to some competition in the remaining 13 developing economies would be a natural option with a view to boosting fixed-broadband
and this in turn fosters competition and ultimately contributes to achieving lower fixed-broadband prices The analysis of the variables that affect
to competition only. The results previously discussed are only valid if considered in combination with the other explanatory variables
Chapter 4. ICT prices and the role of competition 162 monthly consumption for fixed-broadband plans
competition in the fixed-broadband market and the ICT regulatory environment, may together be a greater determinant for fixed-broadband prices
Competition HHI %163 Measuring the Information Society Report 2014 of competition across countries are estimated to account for 6 per cent of the variations
observed in prices. This provides a quantitative assessment of the benefits that competition and enabling regulation can bring to fixed
-broadband markets, particularly in developing countries, as previously highlighted. Differences in fixed-broadband prices are not just a matter of
on increased competition Results for mobile cellular The results of the panel regression for mobile
Competition in the market as measured by HHI is correlated significantly to prices, and the sign
indicates that increased competition reduces prices. For example, the model predicts that in a market with two mobile-cellular operators
Competition in mobile-cellular markets is stronger than in fixed-broadband markets and differences in competition levels across
mobile-cellular markets are on average smaller Nevertheless, mobile-cellular markets in developing countries were on average more
Chapter 4. ICT prices and the role of competition 164 According to the results of the econometric
countries were to achieve the competition levels prevailing in developed countries, mobile -cellular prices could be reduced by up to 5 per
that stronger competition can have on mobile -cellular prices in highly concentrated markets The link between competition, regulation and
prices in mobile-cellular markets discussed is only valid if considered in combination with the other explanatory variables included in the
that the impact of regulation and competition on prices is assessed discounting the effects of these
market, competition is a stronger determinant of pricing trends Different competition levels may account for an
estimated 7 per cent of the differences in mobile -cellular prices observed across countries. Taking
finding highlights the importance of competition as a driver for lower prices in mobile-cellular
development of competition in the market, since the degree of liberalization achieved in mobile -cellular markets is compared high
competition and lower prices in mobile-cellular services, whereas in fixed-broadband markets stronger regulatory action may be needed
impact of competition and regulation on fixed -broadband and mobile-cellular prices •Fixed broadband:
Different competition levels may explain around 6 per cent of the differences in prices observed
competition plays an important role in determining prices in fixed-broadband markets. Another factor that is found to
Competition (HHI) Regulation clusters 1-3 Regulatory Tracker Chapter 4. ICT prices and the role of competition
166 Table 4. 15: ICT Price Basket and sub-baskets, 2013 Rank Economy IPB 2013
Chapter 4. ICT prices and the role of competition 168 and that policy-makers and regulators
data caps, competition in the fixed -broadband market and the ICT regulatory environment, are together more of
prices, and competition is stronger in mobile-cellular markets. Different competition levels largely explain the
differences in mobile-cellular prices observed across countries (an estimated 7 per cent), whereas differences in the
competition. Regulatory efforts should be focused on ensuring that higher levels of competition are achieved, particularly in those countries where dominant
operators still hold market shares above 60 per cent, thus limiting the possible benefits that competition may yield
in terms of more affordable prices for customers. Efficient spectrum allocation and assignment could allow the entry
help to spur competition in some markets even if penetration levels are already high 169 Measuring the Information Society Report 2014
These data suggest there is limited competition among operators 13 Advanced mobile technologies refer to standards agreed by the ITU Radiocommunication Assembly for next-generation
Chapter 4. ICT prices and the role of competition 170 18 Mauritel reported 7 352 fixed Internet subscriptions by end 2013,97 per cent of which trhough ADSL (source:
competition from the private sector when seeking to attract the right talent. Unfortunately developing countries,
•Fostering big data competition and openness: Regulators could foster big data competition in increasingly concentrated big data markets, including
by ensuring that data holders allow others to access their data under fair and reasonable terms
Bouckaert, J.,Van dijk, T. and Verboven, F. 2010), Access regulation, competition, and broadband penetration: An international
Competition and commercial strategies Information Economics and Policy, 27,24-38 CETIC. BR (2013), TIC Domicã lios (2012), Pesquisa sobre o Uso das Tecnologias de Informaã§Ã£o e Comunicaã§Ã£o no Brasil.
Gruber, H. and Koutroumpis, P. 2013), Competition enhancing regulation and diffusion of innovation: The case of broadband
Koski, H. and Kretschmer, T. 2005), Entry, standards and competition: firm strategies and the diffusion of mobile telephony
for innovation, competition, and productivity. Retrieved from: http://www. mckinsey. com/insights/mgi/research /technology and innovation/big data the next frontier for innovation
Ros, A. 1999), Does ownership or competition matter? The effects of telecommunications reform on network expansion and
Wallsten, S. 2001), An econometric analysis of telecom competition, privatization, and regulation in Africa and Latin america
competition 4. 1 Introduction 4. 2 Fixed-telephone and mobile-cellular prices 4. 3 Broadband prices
4. 5 The impact of competition and regulation on telecommunication prices Chapter 5. The role of big data for ICT monitoring and for development
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