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3930. The international Efficiency Gap Analysis of Mobile Network Operator markets

Invited abstract in session TD-48: DEA applications in Policy Making and Planning I, stream Data Envelopment Analysis and its Application.

Tuesday, 14:30-16:00
Room: 60 (building: 324)

Authors (first author is the speaker)

1. Norihiro Hayakawa
Graduate School of Business Sciences, University of Tsukuba
2. Yasufumi Saruwatari
Faculty of Business Sciences, University of Tsukuba

Abstract

The objective of this study is to clarify the impact of market characteristics of the mobile telecom market in Japan, the Republic of Korea (South Korea), the United Kingdom (UK), and the United States (USA) on the efficiency of management of the Mobile Network Operators (MNOs) in each market. The MNOs are said to be affected by their government policies. In comparison to the efficiencies of MNOs internationally, it is necessary to consider not only the external factors that the MNO can NOT control but also the internal factors that the MNO can control. This study employs "meta-frontier" to separate those factors and clarify the efficiency gap (i.e., the Technology-Gap) between the countries. The Technology-Gap reveals a range of characteristics across international mobile network operator markets: the platform migration strategy (3G to 4G, 4G to 5G), the mobility of customers, the smartphone (device) sales and customer acquiring strategy, the government regulations, and so on.
One of the results shows that the global MNO markets can be divided into two categories given the mobility of customers. The markets that have high mobility of customers migrate their generation aggressively and sell smartphones (devices) at lower prices to acquire new customers. The markets that have low mobility of customers tend to cut their service costs and lower their service fees to retain customers.

Keywords

Status: accepted

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