The Role of Regulation in the Evolution of Mobile Services Industry

Abstract: This article describes the evolution of mobile internet services in Finland and Japan and analyses the impact of telecom regulation on the structure and dynamics of the mobile industry. The structural analysis is based on conceptual frameworks such as Mobile Market Matrix (MMM) and the strength of networks analysis. It is argued that the vertical/integrated structure of the Japanese market has been more successful in migrating consumers from 2nd generation voice-centric services to the next generation of mobile content services. The internet-like, "mix-and-match " industry structure adopted in the Finnish market may not be optimal during a major shift in technology or business models. Furthermore, the article demonstrates how regulatory actions have very different effects depending on industry structure and product architecture. These findings are examined in the light of the i2010 initiative. The importance of strong business networks and strong mobile operators in building the ecosystem is also emphasized. Key words: telecom regulation, mobile services industry, industry evolution, i2010, business networks and platformization. he impact of regulation on the structure of the telecom industry an