Factors Influencing the Degree of Competition in the Telecom Industry

Abstract

Using real historical data from 30 European markets we test the empirical validity and applicability to telecom markets of Porter’s degree of competition factors. The results from our analysis reveal that they fail to correctly determine intensity of competition in telecom and have no predictive power when applied to telecom markets. We propose a better metric for judging the likely degree of competition in any given telecom market.
Keywords: Competition, Telecom, Market share.