The determinants of mobile game success in South Korea

The global gaming industry, especially the mobile game market, has grown rapidly in recent years. One of the important characteristics of mobile games is that their lifetime is remarkably short compared with those of PC or console games, and downloads of most games peak during the early period of the service. Acquiring as many users as possible immediately after the launch and retaining these users therefore becomes very important for the successful performance of mobile games. This study aims to identify the determinants of mobile game success during different periods after the launch by comparing the first week's performance with the first 4 weeks' performance using a multiple regression analysis with mobile game application downloads from Google Play and estimated sales revenue as performance indicators. The predictors were classified on the basis of the pre- and postlaunch phases, and developer/publisher and third-party factors. A key finding is that for both revenue and downloads, TV advertising and the number of online videos have strong impacts on both the first week and 4 weeks' performance. In addition, preregistration during the prelaunch stage is effective for increasing both revenue and downloads in a relatively short time. Online videos uploaded by the users during the postlaunch phase may help to maintain long-term revenue. Although awareness of IP and name value of publishers are significant for short-term downloads, the effect diminishes after a month, which might imply that there could be an opportunity for small- and medium-sized companies to invest in media and obtain mobile platform advantages in the long run.     

From the wired to wireless generation? Investigating teens’ Internet use through the mobile phone

Scholars have an enduring interest in investigating whether a new medium displaces or complements existing media whenever a new medium is introduced to the society. In this study, it is sought to investigate the extent to which the mobile phone would replace or reinforce teens’ traditional Internet use through computers. Surveys were conducted on 1875 youths between 12 to 17 years old in 5 digital cities in East Asia: Hong Kong, Seoul, Singapore, Taipei, and Tokyo. The findings profile a digital generation that is highly connected in the 21st century. Ninety percent of all respondents used the Internet. Almost 90% of the teens in this study used the mobile phone, and two-thirds of them ever surfed the Web via their mobile devices. Through a factor analysis, three dimensions of teens’ use of mobile Internet were identified, namely, task-based activities, information seeking and communication activities, and recreational activities. In general, the teens tend to use the mobile phone for recreation and entertainment purposes, especially playing games and listening to music. They are less likely to use the mobile phone for more sophisticated purposes, such as petitioning, voting, or shopping. Drawing upon the niche theory, the patterns between teens' mobile Internet and PC Internet use were further compared. Our analysis shows that mobile Internet primarily serves as an extension of teens’ Internet activities via PC, rather than as a replacement. Such positive relationships are quadratic and non-linear.     

Business ecosystem strategies of mobile network operators in the 3G era: The case of China Mobile

In order to define the mobile network operators' strategies of building value network in the 3G era, this paper applies the ecosystem principles to the mobile industry through a China Mobile case study. Based on an analytical framework of such principles, this paper reviews China Mobile's ecosystem, and identifies its success factors and problems. The results indicate that a complete ecosystem, where mobile network operators collaborate closely with value-added service providers, content/application providers, equipment and device manufacturers, and other involved organizations, can promote the development of mobile data services substantially. Therefore, mobile network operators should play a central role in the ecosystem by managing the entire value-chain and setting up proper value-sharing mechanisms. However, while doing so, problems may arise because of regulatory issues and information asymmetry. High-value common assets, a centralized management system, partner selection schemes and continuous innovations are important success factors.     

The role of mobile handsets in advanced network service evolution: Evidence from Japan

This paper aims at a better understanding of the mechanisms of mobile network service evolution through a closer examination of the context of mobile handsets. It aims first to establish quantitatively that mobile handsets are a determinant of mobile network service evolution patterns, and second, to develop a consistent perspective capable of explaining the evolution of various mobile network services. Despite the fact that mobile handsets are indispensable to users of mobile network services, surprisingly little is known about the role of these handsets in mobile network service evolution. This paper provides quantitative evidence of a positive relationship between intra-network-carrier penetration rates for mobile network service subscribers and mobile handsets designed for these services. The relationship is such that if one network service is diffused more than another, the mobile handsets related to the more diffused service are similarly more widely diffused in the market, and vice versa. The evidence is derived from an analysis of two mobile network services in Japan, mobile Internet and third generation mobile, initiated by NTT DoCoMo and KDDI. There are no existing studies that consistently explain the mechanisms of different mobile network service evolution patterns. Since the positive relationship that emerges from the analysis is consistent for both cases, by examining the mechanisms underlying this relationship, the paper develops an adequate and consistent perspective based on a constituent model reflecting the technological and competition structure of mobile network services. From this perspective, this positive relationship can be explained as the similarity or dissimilarity in essential technology ownership distribution across constituents. This perspective describes mobile network evolution in terms of changes in the distribution of essential technology ownership and, therefore, could be generalised more widely.     

Satisfaction of individual mobile phone users in Spain

Consumer satisfaction is a key determinant of consumer retention, consumer welfare, and is also a strategic variable for competition and international comparisons. Spain's mobile customer satisfaction is the lowest in the European Union. The focus of this paper is to identify the determinants of residential mobile phone users' satisfaction among private consumers of mobile telecommunications in Spain. Two innovative aspects of this paper are the focus on a nationwide representative sample of residential consumers in Spain, and the usage of rich individual data to convey high quality statistical information. The correlation of each of the aspects to the overall satisfaction are measured. Also, relationships between different aspects of satisfaction and its determinants are formulated. The paper specifies econometric models and estimates them using a survey of 4249 mobile phone users. The results indicate that customers are less satisfied with larger carriers, and are more satisfied with smaller and newer operators. Policy recommendations are suggested to improve customer satisfaction, contribute to customer retention and improve the position of the country in the international rankings.     

Demand for telecommunication services in developing countries

Living standards and economic growth in developing countries are invariably linked to the availability and use of telecom services. Effective policy decisions require the best estimates of the drivers of these services. In this paper, telecommunications demand is estimated in models for residential mainline and mobile telephone service for developing countries for the period 1996–2003. The paper tests for cross-price effects between mainline and mobile service and its findings have important policy implications. It finds residential monthly price elasticity to be insignificant for developing countries, but the connection elasticity is larger than generally found in the literature. Mobile monthly price elasticities are very large. A new and important empirical finding is that although wireline phones are substitutes in the mobile market, the contrary is not true—mobile phones are not substitutes in the wireline market, and in fact may be considered complements. This lack of symmetry has important implications for properly defining telecom markets. Universal service subsidies and competitive market initiatives should be reevaluated in light of the paper's elasticity estimates. Increased competition, income growth and enhanced education may be the ultimate universal service promoters.     

The impact of regulating mobile termination rates and MNO-MVNO relationships on retail prices

A mobile virtual network operator (MVNO) provides mobile telecommunication services by eluding the constraints of the radio communication infrastructure and establishing an agreement with a hosting network operator (HNO) for the use of its spectrum. Thus, MVNOs offer a wide range of mobile services and directly compete with every mobile network operator (MNO). This paper studies the economic justifications for potential regulatory intervention that defines the level of mobile termination rates (MTRs) and negotiations and agreements among MVNOs and HNOs. The results show that symmetric MTR reduction leads to competition growth among operators, forcing every operator to reduce retail prices and, consequently, to enhancing consumer welfare. The paper also finds that a collaborative strategy adopted by an HNO and an MVNO is advantageous for both and induces a reduction in retail prices, thus weakening other MNOs.     

Network effects and preference heterogeneity in the case of mobile telecommunications markets

This paper demonstrates how revealed- and stated-preference analyses can be used for modeling network effects in the field of mobile telecommunications. The aim of this study was to verify if network effects may still play a role in the Polish mobile telecommunications market, measure their strength, identify their sources and variability across consumers by accounting for consumers' observable and unobservable preference heterogeneity, evaluate their monetary value to consumers, and finally, to verify if the marginal utility associated with network effects is constant. The analysis of consumers' revealed choices (currently used mobile telephone operator) allowed the identification of major differences between customer bases of incumbent and new entrant operators, and insight into the business strategies adopted in the presence of asymmetric regulation of mobile termination rates. The second part of the study—the analysis of the consumers' stated choices (made in carefully prepared and designed hypothetical choice situations, known as the choice experiments) made it possible to directly model consumers' utility functions and, in this way, investigate the nature of network effects in mobile telecommunications markets. From the results, the presence of strong network effects, which are related to the ratio of consumers' social network group using the same operator, and to the magnitude of on-net price discounts, is confirmed. These network effects can be disaggregated to pecuniary and non-pecuniary effects. Through the utilization of the random parameters multinomial logit model, consumers' observable and unobservable preference heterogeneity can be accounted for, which proved a scientifically revealing and potentially policy-relevant approach. The results might be of a particular interest to other researchers aiming at modeling consumers' preferences as well as to mobile telephone operators and regulatory authorities—it is shown that capacity for vigorous price competition between mobile operators is limited by non-price factors, which affect subscriber's choices, especially in the presence of asymmetric mobile termination rates.     

Mobile communications – On standards,classifications and generations

The research question addressed in this paper is concerned with the manners in which the general technological progress in mobile communications is characterized and the reasons for the differences in these modes of manifestation. The relevance of this research question is that the different manifestation modes create a degree of confusion in communications and discussions on mobile technologies. At the same time, it should be recognized that different manners of categorizing technologies illustrate the fact that categorizations are based on different purposes of the classification exercises. Also, the paper discusses the role of the International Telecommunication Union (ITU) in the processes of mobile standardization.In common parlance, progress in mobile technologies is mostly referred to as generations. In ITU, the classification terminology is that of International Mobile Telecommunication (IMT) standards. In the specialized standards body with a central position in the standardization of core mobile technologies, namely 3GPP (3rd Generation Partnership Project), the terminology of ‘releases’ is used. In order to address the research question, the paper uses an analytical framework based on the differences and relationships between the concepts of standards, classifications and generations.     

Quality-adjusted international price comparisons of mobile telecommunications services

Many countries' policymakers have conducted international price comparisons of mobile telecommunications services to prevent service operators from overcharging subscribers. However, those comparisons have become more complicated because of the escalation in service usage and telecommunications expenditures spurred by the proliferation of smartphones and broadband LTE wireless internet service networks. The basket-based methodologies that have been widely used for international price comparisons are also limited—first, because the baskets for comparison may not be representative of actual service usage patterns in some countries; second, because they are difficult to apply to highly differentiated service plans due to the significant increase in wireless internet service usage and widely used plans with unlimited voice call service and SMS/MMS; and third, because they cannot consider the quality of service, such as upload and download speed in various service environments, at all. As an alternative, this paper proposes a hedonic pricing model that accounts for service quality and its variation in potentially disruptive environments, as well as fixed charge for a mobile phone additional to the price of service plans. The model was used to derive quality-adjusted price indices of mobile telecommunications services for twelve cities in ten countries with broadband LTE wireless internet service. The empirical results confirmed that the price index of each city varied significantly across the specifications,—both within the United States and internationally—depending on whether the model was constructed to reflect service quality and its variation on roads, in buildings, and in subways. The price index of each city also varied depending on whether the subsidized price of a mobile phone was considered part of the monthly price of a service plan. These results have important implications for policymakers seeking to understand the ultimate level of mobile telecommunication service prices for their country in a global context.     

Entering the mobile service market via mobile platforms: Qualcomm's BREW platform and Nokia's Preminet platform

The mobile telecommunication market has evolved from simple voice to multimedia services. In the past, the primary players in mobile services were local operators in different countries; international telecommunication vendors, such as Qualcomm and Nokia, were seldom involved in the mobile service market. In order to enter this market, Qualcomm and Nokia have separately introduced their mobile application platforms, called respectively BREW and Preminet. This paper examines how the two companies attempt to share the mobile service market through their mobile platforms and internationalized business models. This paper also analyzes their mobile platforms’ business models and their strategic implications.     

Mobile phones,mobile Internet,and employment in Uganda

We analyze the relation between mobile phone use – mobile Internet in particular – and employment, self-employment and job regularity in Uganda. We find no evidence of any positive impact of mobile Internet use on employment or job quality, suggesting that either respondents do not use mobile Internet for job search practices or as a job tool, or that these uses are ineffective. However, we find that the adoption and use of basic mobile phones are positively related to employment and job quality, and we argue that regulators should focus on promoting the affordability of basic phones and mobile airtime.     

Mapping worldwide mobile networks: Some problems and indicative solutions

Mobile telecommunications is a global and complex industry containing many actors. However, relatively little research has been undertaken into explaining its structure. With this in mind, the objective of this paper is twofold: first, to map the structure of the mobile telecommunications industry and, second, to use this mapping exercise to highlight the data collection issues that are frequently encountered. Through outlining one particular approach to data collection, the paper argues that researchers need to be careful when constructing datasets and wary when relying on those provided by others. By mapping the structure of the mobile industry, the paper highlights a series of key issues in data collection and trends in operator and market structure.     

Global political economy of technology standardization: A case of the Korean mobile telecommunications market

This paper examines empirical cases of standardization in the Korean mobile market as vehicles for approaching the broader political and institutional context of standardization in telecommunications. A consideration of Korean standardization in the mobile telecommunications market is particularly interesting because it reveals how the state's political interests influence standards decisions, which are primarily driven by market and technological changes in telecommunications. Judged from the social construction of technology perspective which sheds light not only on technology itself but also on political, social and economic interests that surround transformations in technology, this paper highlights power relations among the major actors that have made technology standards decisions in Korea regarding second (2G) and third-generation (3G) mobile telephony. The paper also attempts to show how the Korean government has dealt with the diverse interests of various market actors while pursuing its own policy agenda.     

The role of mobile network operators in next-generation public safety services

Field of researchThis research is in the field of public safety communications in mobile broadband 4G/5G networks. The focus is on mobile network operators and their business opportunities in the public safety market.PurposeThe purpose of this research is to provide a review of ongoing public safety mobile broadband projects in which mobile operators play a key role. In addition, a business model analysis is presented to determine the role of mobile operators in these projects. A comparison of the two key business models is also included to reveal their general characteristics.Methods and dataThe research used a qualitative method, an inductive case study. This method was used to draw general conclusions from a small number of case studies based on ongoing public safety mobile broadband projects. The Casadesus-Masanell and Ricart framework and the business model canvas were used to analyse and compare the two key business models discussed. Data were collected from a variety of sources, including company reports, press releases, international events and conferences, and selected interviews with managers in charge.FindingsThe results show that mobile operators have new business opportunities in the public safety market. Their existing mobile networks can be used for public safety services with certain enhancements. Within existing projects, mobile operators have different business models. The two analysed models were found to require different resources and offer different business opportunities for mobile operators. Procurement authorities responsible for selecting business models are encouraged to pay attention to the choice of model based on, for example, strategic objectives.ValueVery little research has been done on the business opportunities of mobile operators in the public safety market. In this area, this study lays the groundwork for new research. Procurement authorities can use the results when deciding on the business model. Mobile operators can benefit from these results by better understanding their own roles in public safety projects and when assessing the business opportunities of a particular project.     

Competitive behavior in the European mobile telecommunications industry: Pioneers vs. followers

This paper studies the relationship between competitive strategy and improvement in the competitive position of pioneers and followers in the mobile telecommunications industry. The analysis uses a panel of data comprising all the actions of European firms operating in the digital mobile telecommunications industry with GSM 900 and/or DCS 1800 networks. The results show that competitors gain market share when they follow competitive strategies that are different from those of other firms. The paper also finds that price reduction actions represent the best approach for followers, while differentiation actions are the most effective strategy for pioneers.     

Fixed-to-mobile substitution in the European Union

This paper analyzes substitution between access to fixed-line and mobile telephony in the European Union using cross-section panel data on households’ choices of telecommunications technologies in years 2005–2010. We estimate a structural model of household?s demand for access to: (i) fixed-line only; (ii) mobile only; and (iii) both fixed-line and mobile. We find that growing Internet usage increases the share of ‘fixed + mobile’ households, which suggests that households keep their fixed-line connection to access Internet. However, the spread of 3G and cable broadband access decreases the share of ‘fixed + mobile’ households and increases the share of ‘mobile only’ households. Hence, fixed-to-mobile substitution was slowed down by the spread of Internet but it may continue with the spread of mobile broadband. Furthermore, bundling of telecommunications services increases the share of ‘fixed + mobile’ households and decreases the shares of ‘mobile only’ and ‘fixed only’ households. Therefore, operators which can bundle fixed-line connection with Internet or mobile services may slow down fixed-to-mobile substitution.     

Estimating switching costs involved in changing mobile phone carriers in Japan: Evaluation of lock-in factors related to Japan’s SIM card locks

This paper employs a web-based conjoint-type questionnaire to examine empirically user preference for a hypothetical Subscriber Identity Module (SIM) unlock situation in Japan’s mobile phone market. This paper also analyzes carriers’ other marketing strategies to lock in consumers. The empirical analysis in this study reveals the following: over 80% of survey respondents evaluate a highly compatible platform with the SIM unlocked. Approximately 70% of consumers find that the value of discounts on initial payments exceeds the discounts on one-year monthly payments. In addition, conditions set by continuing agreements for mobile carriers and mobile handsets reduce consumer benefit by 35% at the median in the case of SIM unlocking with compatible platforms.