Strategic action in network industries: an empirical analysis of the European mobile, страница 11

Simplify billing

January 1997

DT Mobil (Germany) introduces a new scheme with no monthly charge and

simplified billing

Change interconnect terms

2. Cooperative actions

Infrastructure operations

February 1997

Orange (UK) raises charges to BT customers calling its network from 17p to 30p a minute

Stake in another firm or JV to physically enter a new market

Network promotion

February 1997

Telenor (Norway) has joined the race for a share of the German market by joining forces with the BT/Viag partnership and picking up a 10% stake

Strategic alliance with other network firms with promotional goals

Service provisioning

November 1996

Vodafone (UK) has entered into a strategic alliance with British Airways which gives Vodafone exclusive right to market its services to BA frequent fliers

Strategic alliance with network firms of any nature to provide new services or enhance them

3. Other moves

November 1996

Telia (Sweden) signs up with NetCom (Norway) to switch all its Scandinavian traffic, allowing its customers to make international calls from NetCom’s GSM network

Resell capacity

December 1996

Orange (UK) announces that it will buy GSM capacity of Cellnet and Vodafone and resell mobile communications and related value added services

Reduction of workforce

January 1997

Cable and Wireless (UK) announces the reduction of its workforce by 2500 through a voluntary scheme

Restructuring

July 1997

Telecom Eireann (Ireland) has restructured its operations, spinning off its operations into

subsidiaries with autonomy

Regulatory action

October 1997

Omnitel (Italy) refuses to sign the negotiated settlement between Omnitel, Telecom Italia and the Ministry of Communications and takes it to the EC Competition

Commissioner

Divestment

November 1996

Telia (Sweden) sells off its stake in Pannon, the Hungarian GSM operator to

TeleDanmark, Telenor, KPN and Telecom Finland

concerned three actions—two cooperative and one competitive involving a total of five companies, where the second coder discarded these actions in the mistaken belief that they involved no definite strategic decisions but only intentions about future behaviour.[2] In our opinion, given the overlap in 80% of the actions and the reasons for the few observed discrepancies between the two coders, the coding method provided an adequate level of reliability.

5.3.  Measures

Based on the 199 identified strategic actions, taken by the mobile phone operators in the 12 European market during the 17-month period, the following measures were computed:

Number of Strategic Actions: Total number of strategic actions taken by all operators licensed in each of the 12 countries during a single month. Example: aggregate number of actions taken by the three German phone operators during January 1997.

Number of Customers: Total number of mobile phone contracts (i.e., service users) in each of the 12 countries for each month. Example: number of mobile phones in use in Germany at the end of January 1997 (obtained from IDATE).

Period: Dummy variable with values 1 through 17 representing the month to which the observation belongs.

Country: Set of dummy variables representing the 12 countries in the study.

Penetration: Number of customers in a particular month in each market divided by the country’s population (WTID figures using December 1995 as base year).