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European mobile markets and the doctrine of '4 networks good, 3 networks bad'

European mobile markets and the doctrine of '4 networks good, 3 networks bad' PurposeIn the light of the recent European Commission decisions that clearly favour the maintenance of a 4-network structure in European mobile markets, our purpose is to provide an empirical examination of the case for and against such a structure.Design/methodology/approachA table of concentration ratios in 35 sample European markets is constructed and is followed by a detailed analysis of all relevant merger/takeover cases since 2012. These are then used to provide a general analysis of the desirability of further consolidation in the European mobile sector. FindingsAlthough the relevant investigatory bodies claim to have made out a watertight case for the maintenance of existing structures, the paper explains why these claims should be met with some scepticism, especially in the light of the development of 'quad-play' in all markets.Research limitations/implicationsWhen a decision is made on a market structure it is pointless to pursue the 'but what if?' alternatives any further. However, it should be possible in a few years' time to assess whether the Commission's predictions have come to pass.Originality/valueAs the UK decision has only just been delivered, the only commentary so far has had a narrow focus whereas this paper seeks to provide useful and relevant background data about the structure of markets and technological developments. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Info Emerald Publishing

European mobile markets and the doctrine of '4 networks good, 3 networks bad'

Info , Volume 18 (5) – Aug 8, 2016

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References (7)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1463-6697
DOI
10.1108/info-05-2016-0021
Publisher site
See Article on Publisher Site

Abstract

PurposeIn the light of the recent European Commission decisions that clearly favour the maintenance of a 4-network structure in European mobile markets, our purpose is to provide an empirical examination of the case for and against such a structure.Design/methodology/approachA table of concentration ratios in 35 sample European markets is constructed and is followed by a detailed analysis of all relevant merger/takeover cases since 2012. These are then used to provide a general analysis of the desirability of further consolidation in the European mobile sector. FindingsAlthough the relevant investigatory bodies claim to have made out a watertight case for the maintenance of existing structures, the paper explains why these claims should be met with some scepticism, especially in the light of the development of 'quad-play' in all markets.Research limitations/implicationsWhen a decision is made on a market structure it is pointless to pursue the 'but what if?' alternatives any further. However, it should be possible in a few years' time to assess whether the Commission's predictions have come to pass.Originality/valueAs the UK decision has only just been delivered, the only commentary so far has had a narrow focus whereas this paper seeks to provide useful and relevant background data about the structure of markets and technological developments.

Journal

InfoEmerald Publishing

Published: Aug 8, 2016

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