A comparison of the Finnish and the Japanese mobile services markets : observations and possible implications

Abstract

This study focuses on the transformation of the mobile services industry by identifying factors affecting the structure and dynamics of the industry. By adopting a supply-side view of the industry evolution, the study identified three key constructs having an impact in the process. These constructs are industry structure, product architecture, and regulation. In addition to the rich description of the two case markets, the study introduces a new concept called Industry structure vs. Industry life cycle model. Furthermore, the dynamics of different mobile markets, and the role of regulation in the evolution of those markets is analyzed by using the Mobile Market Matrix model, which demonstrates how the Finnish and the Japanese mobile markets moved during the research period of 2002 - 2006 to opposite directions despite the increasing use of technologies based on global standards. The study discusses the possible implications of regulatory actions, such as the handset subsidy ban, on the structure and dynamics of the Finnish mobile services markets and the success of the next-generation mobile data services vis-à-vis the Japanese and other markets in Europe with a different kind, operator-driven coordination mechanism. Implications for other mobile services markets are drawn, and avenues for future research are suggested.