WAYS TO IMPROVE THE EFFICIENCY OF TELECOMMUNICATIONS SECTORS: THE EXAMPLE OF ARMENIA

Both worldwide and in Armenia, the telecommunications market is saturated. In order to understand the role of services offered by telecom operators, determine the availability of innovative technologies and identify problems that arise among subscribers, we conducted an anonymous sociological survey among the population of Armenia and also developed a system consisting of several indicators to measure the effectiveness of the sector. The results of the sociological survey prove once again that innovations and new technologies ensure customer loyalty. From the answers, it can be concluded that the reforms carried out in different years: the expansion of the network, the import of new technologies and their implementation contribute to the formation of loyal customers. To measure the effectiveness of the sector, the elasticity of various indicators in relation to each other was measured. As a result, the elasticity of real imports of innovative equipment in relation to real revenue is considered the most elastic of these indicators, which means that equipment imports are sensitive to a decrease in revenue. The results obtained indicate that the sector is in a fairly high degree of saturation, further growth of subscribers is accompanied by a decrease in revenue, since their attraction mainly occurs in the case of lower prices for the services provided. And the only way to be competitive is to provide new services by importing innovative equipment, especially by offering Internet services to consumers at affordable prices, thanks to increasing their loyalty.

Predictions from an Empirical Study in the Turkish Mobile Telecommunications Market on the Determinants of Mobile Customer Churn

Acquiring new customers compared to holding the existing ones is costlier and more troublesome for businesses, so customer retention is of great importance in today's intensely competitive environment. It is crucial in customer relations management to identify and analyse customers whose loyalty decreases and who tend to leave, and prevent churn through various methods under resource constraints. This issue is especially prominent in the mobile communication market. This paper uses a binomial logit model based on a survey with 637 mobile users in Turkey to determine the factors affecting customer churn and how they find their effect. Results indicate that, among various factors, network quality, billing, tariff level, tariff plan, and education level are the determinants affecting customer churn and associated with the intention to switch. Our findings demonstrate implications for both managers and rule-makers in the mobile telecommunications sector.

The Charismatic Organization: Vision 2000 and Corporate Change in a State-Owned Organization

British Telecom’s 1984 partial privatization set in motion the privatization and deregulation of many international state-owned telecommunications carriers. Most previous research on the privatization and deregulation of state-owned telecommunications carriers has focused on the economic outcomes. However, this was also a time of changes in managerial practice and thinking influenced by organizational theory. This article presents an analysis of the use of the prescriptions of Rosabeth Kanter in the attempted reform of the organizational culture of Australia’s largest business in the 1980s: the government-owned telecommunications monopoly Telecom Australia (now Telstra). It details the attempt to transform Telecom under the incipient threat of the introduction of competition to the telecommunications market and demonstrates how the country’s largest change management program, Vision 2000, represented an alternative approach to telecommunications reform.

Wroclaw Electronic Works: Wrocławskie Zakłady Elektroniczne „Elwro” 1959–2000

Based on the research potential of the Wrocław higher education center and its achievements in mathematics and automation, Wrocławskie Zakłady Elektroniczne “Elwro” was launched in the capital of Lower Silesia, in the late 1950s. Starting with the production of relatively simple electrotechnical devices, the company transformed in just a few years into a manufacturer of digital machines of its own design, “Odra”. They have found wide application in science, administration, communication and industry − both in Poland and abroad, mainly in the Comecon member states. The 1970s were the period of the peak development of WZE “Elwro”, in which apart from devices of its own design, computers belonging to the so-called Uniform System of Digital Electronic Machines of Comecon countries, were also being produced. The effects of the economic crisis of the 1980s abruptly reduced the orders for computers produced in “Elwro”, and their development and production was slowed down by problems with obtaining materials that were scarce in the country and foreign currency for foreign purchases. The technological distance between the “Elwro” offer and the equipment manufactured in the leading countries of the West was growing. After the start of the system transformation in the country, the management of “Elwro” attempted to carry out radical organizational transformations and grant the company the status of a joint-stock company. However, they were held back for too long by both the lack of government support and the concerns of the works council. Meanwhile, deteriorating economic results forced the management of “Elwro” to reduce employment and sell more and more assets. Ultimately, in 1993, the plants were transformed into a sole-shareholder company of the State Treasury, and then sold to the German concern “Siemens”. For the new owner, the only thing that mattered was the access to the Polish telecommunications market obtained in this way. He did not use the still existing human resources and production potential of “Elwro” and, shortly after the purchase, practically liquidated the company. In 2000, its remains were sold to the American telecommunications company “Teletec Holding”, which changed the name of the company to “Teletec Polska” S.A.

The Effect of Technological Change and Regulation on the Evolution of the New Zealand Telecommunications Market

<p><b>The absence of industry specific regulation of access to the incumbent'stelecommunications network in New Zealand for an extended period, between1989 and 2001, is unique compared with other countries with developedtelecommunications markets that were opened to competitive entry. This featureof the New Zealand market provides an opportunity to compare the conduct andperformance of antitrust regulation with industry specific regulation introducedin 2001.</b></p> <p>Of particular interest is the place of the concepts of natural monopoly andperfect competition in the regulation of a dynamic market. This thesisestablishes the characteristics that contribute to dynamic supply and demandconditions in the telecommunications market including network effects,discontinuity in demand due to participation, ongoing technological progress ofhardware, sunk costs of software development, and the irreversible investmentof augmenting capacity to meet expected growth in demand. The economicliterature on conjectural variations indicates that under such conditions theconcepts of natural monopoly and perfect competition do not explaincompetitive conduct due to an unstable market equilibrium. The implication isthat forming a reasonable view of competitive conduct is limited to the presentperiod of time.</p> <p>It is shown that decisions made under antitrust regulation are limited to theparticular context of disputed competitive conduct, and these decisions do notspeculate on future competitive conduct. In contrast, industry specific regulationhas formed a sequence of views of competitive conduct, looking forward, that isbased on concepts of natural monopoly and perfect competition. It is observedthat with time, these views of competitive conduct have evolved with thechanging market conditions. If regulatory actions evolve with a changing view ofcompetitive conduct they risk reducing dynamic efficiency.</p>

The Effect of Technological Change and Regulation on the Evolution of the New Zealand Telecommunications Market

<p><b>The absence of industry specific regulation of access to the incumbent'stelecommunications network in New Zealand for an extended period, between1989 and 2001, is unique compared with other countries with developedtelecommunications markets that were opened to competitive entry. This featureof the New Zealand market provides an opportunity to compare the conduct andperformance of antitrust regulation with industry specific regulation introducedin 2001.</b></p> <p>Of particular interest is the place of the concepts of natural monopoly andperfect competition in the regulation of a dynamic market. This thesisestablishes the characteristics that contribute to dynamic supply and demandconditions in the telecommunications market including network effects,discontinuity in demand due to participation, ongoing technological progress ofhardware, sunk costs of software development, and the irreversible investmentof augmenting capacity to meet expected growth in demand. The economicliterature on conjectural variations indicates that under such conditions theconcepts of natural monopoly and perfect competition do not explaincompetitive conduct due to an unstable market equilibrium. The implication isthat forming a reasonable view of competitive conduct is limited to the presentperiod of time.</p> <p>It is shown that decisions made under antitrust regulation are limited to theparticular context of disputed competitive conduct, and these decisions do notspeculate on future competitive conduct. In contrast, industry specific regulationhas formed a sequence of views of competitive conduct, looking forward, that isbased on concepts of natural monopoly and perfect competition. It is observedthat with time, these views of competitive conduct have evolved with thechanging market conditions. If regulatory actions evolve with a changing view ofcompetitive conduct they risk reducing dynamic efficiency.</p>

Market Entry, Fighting Brands, and Tacit Collusion: Evidence from the French Mobile Telecommunications Market

We study a major new entry in the French mobile telecommunications market, followed by the introduction of fighting brands by the three incumbents. Using an empirical oligopoly model, we find that the incumbents’ fighting brand strategies are difficult to rationalize as unilateral best responses. Instead, their strategies are consistent with a breakdown of tacit semi-collusion: before entry, the incumbents could successfully coordinate on restricting product variety to avoid cannibalization; after entry, this outcome became harder to sustain because of increased business stealing incentives. Consumers gained considerably from the added variety and, to a lesser extent, from the incumbents’ price responses. (JEL L13, L21, L96, M31)

Analysis of Consumer Trends in the Telecommunications Markets of Russia and Vietnam

By way of descriptive and comparative analysis, the subscriber bases and revenues of television, fixed and mobile telephony, and fixed and mobile broadband segments of the Russian and Vietnamese telecommunications markets for the period of 2015-2019 were analysed. The results of the study revealed similar global trends in the telecommunications markets of Russia and Vietnam. Fixed and mobile telephony revenues are declining, since customers prefer new communication technologies to the old ones. The television subscriber base is growing in both countries; TV revenues are increasing in the Russian market and somewhat declining in the Vietnamese telecommunications market. With further penetration of broadband, more customers are upgrading their television from Free TV to Pay TV (IPTV and OTT services). The results of the study confirmed the global consumer trends in telecommunications markets and the applicability of approaches used herein for other countries.

On the Introduction of Diffusion Uncertainty in Telecommunications’ Market Forecasting

Long-run forecasts of telecommunication services’ diffusion play an important role in policy, regulation, planning and portfolio decisions. Forecasting diffusion of telecommunication technologies is usually based on S-shaped models, mainly due to their accurate long-term predictions. Yet, the use of these models does not allow the introduction of risk in the forecast. In this paper, a methodology for the introduction of uncertainty in the underlying calculations is presented. It is based on the calibration of an Ito stochastic process and the generation of possible forecast paths via Monte Carlo Simulation. Results consist of a probabilistic distribution of future demand, which constitutes a risk assessment of the diffusion process under study. The proposed methodology can find applications in all high-technology markets, where a diffusion model is usually applied for obtaining future forecasts.