Measuring the Level of Competition on the Serbian Mobile Telecommunications Market

Kostić, Zorana; Stojanović, Boban; Radukić, Snežana

doi:10.1515/ethemes-2016-0016

Cited by 5 publications

(6 citation statements)

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“…The concentration limit value in the European Union is 25 percentage points and, in the United States, it is 50 percentage points. If the industry exceeds a given value, it is considered highly concentrated (Kostić et al 2016). The acquired values of the surveyed indicator CR3 show that the concentration of the mobile telecommunications market in Slovakia was extremely high during the whole monitored period.…”

Section: Resultsmentioning

confidence: 97%

“…If there were only one monopoly on the market, then the market concentration would increase (and competition in the market would decrease) and the HHI equal to 10,000. However, if thousands of competing businesses were on the market, each with almost 0% market share, the HHI would be zero (Kostić et al 2016). The equation to calculate the HHI is as follows (Brezina et al 2009):…”

Section: Methodsmentioning

confidence: 99%

“…We focus on market shares of operators calculated based on the number of active customers shown in Figure 3 to calculate the mentioned absolute and relative indicators, following the analysis of Serbian authors (Kostić et al 2016) assessing the level of competition on the Serbian mobile telecommunications market by market shares calculated on the basis of active customers.…”

Section: Methodsmentioning

confidence: 99%

“…In Slovakia, Brezina et al (2009), Pekar (2016), andTokarova (2006) also analysed the sectoral concentration of business entities. Kostić et al (2016), who measured the concentration on the mobile market using various indicators-HHI, Lorenz curve, or Gini coefficient indicators, surveyed the concentration on the Serbian mobile market. While using the statistical correlation methods and simple linear regression analysis in their article, they confirmed a strong correlation between market concentration and market performance.…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Oligopolistic Competition among Providers in the Telecommunication Industry: The Case of Slovakia

Valášková

Ďurica

Kováčová

et al. 2019

Administrative Sciences

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The issue of the paper is devoted to the oligopolistic market structure, which is a popular form of imperfect competition occurring in the current market economies. The main aim of the paper is to quantify the selected oligopolistic structure of the telecom industry in the Slovak market in the period 2013–2017. We subjected the oligopoly to concentration analysis of the market to quantify and assess the competitive environment in which mobile providers are operating. Market concentration was measured while using specific indicators of market concentration CR2, CR3, the Herfindahl-Hirschman Index, Lorenz curve, Gini coefficient, and coefficient of variation, using the information on total revenues of operators, the share of mobile operators on total revenues, number of active customers, and the penetration of SIM cards. The calculated values of the selected market concentration indices in the telecom sector proved that the mobile operators market is highly concentrated. The services that are offered by operators are not identical, and they are differentiated based on price, quality, availability, or the target group of customers. We also identified the entry barriers, which can be categorized to strategic, economic, technical, and time barriers. The Slovak telecom sector is an oligopoly where competitors offer slightly differentiated products; however, the competitive environment in which they operate is highly concentrated and competition needs to be regulated to achieve the sustainable development of the telecommunication sector.

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Section: Resultsmentioning

confidence: 97%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Oligopolistic Competition among Providers in the Telecommunication Industry: The Case of Slovakia

Valášková

Ďurica

Kováčová

et al. 2019

Administrative Sciences

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show abstract

“…The authors concluded that media distribution market of Serbia is extremely concentrated with the values of the Herfindahl-Hirschman Index (HHI) of 3344 index points for 2008 and 3169 index points for 2009 (Maksimović, Radosavljević & Borisavljević, 2011, p. 37). The second one is related to the level of limitation of the mobile telephony market of Serbia by Kostić, Stojanović, Radukić (2016). In this paper, the authors have shown that the mobile telephony market of Serbia is extremely concentrated, but that there is a trend of decrease in the level of concentration measured using the Herfindahl-Hirschman index (HHI) (Kostić, Stojanović & Radukić, 2016, p. 333).…”

Section: Literature Review and Methodologymentioning

confidence: 94%

Information and communication technologies product market and protection of competition in the Republic of Serbia

Stojanović¹,

Kostić²

2018

Ekonomika

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Starting from the fact that the importance of information and communication technologies (ICT) for the development of a national economy is high, it has been examined how this sector and the situation in individual markets in the sector affect competition policy. All the most important markets of the ICT sector of Serbia are characterized by a high level of concentration measured using the Herfindahl-Hirschman Index (HHI) with a tendency of decrease. In such circumstances, there are three directions of changing approach to competition policy: (1) changing the angle of observation and estimation of the relevant market boundaries; (2) balancing between good and bad parties related to joining in research and development (R&D), and (3) a more attentive attitude towards patents and licenses, as a basis for the protection of intellectual property, but also barriers to entry into new market. What is required of contemporary competition policy is a dichotomous view of the boundaries of relevant product market. One which is focused on the services of one market from the ICT sector and the second one focused on integral observation of linked services from the ICT sector. Moreover, national competition bodies are required to mutually cooperate at a higher level through the formalization of the information exchange protocol. In the segment related to cooperation in the field of research and development and affirmation of intellectual property protection, through patents and licenses, special attention is required from competition policy so as not to impair the welfare of these institutions, while at the same time preventing uncompetitive behavior.

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Price strategies of mobile operators in Russia in the conditions of the global economic recession

Dengov

Tulyakova

Gregová

et al. 2020

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Research background: Currently, the four major mobile communications providers dominate the Russian market. The oligopolistic structure leads to negative consequences, such as a weak stimulus for the product development or technological innovation, and the lack of incentive for the call-rate reduction. In their line of work, the mobile service providers use different price strategies. To comprehend what determines the current price level and what changes one should expect therein, we have to understand which factors influence the price of the mobile services. Purpose of the article: The chief goal of this work is the analysis of the influence of the crisis on the price strategies of the providers, as well as the forecasting of the changes of prices for their services. As the main hypothesis, this work presents the assumption that during the recession the price of the mobile services in the different regions of Russia will grow. Methods: The authors built regression models for the dependence of the average price of the mobile providers’ services in a particular region from the selected factors. In this work, we selected the following types of the multiple regression equation as the modeling functions: linear, power-law, exponential. Adding the time factor (t) is the key element of the forecasting. Findings & Value added: After gathering the data and the subsequent calculation of the medium price baskets, we were able to build different multiple regression models. To build the forecasts for the dynamics of prices in the regions for the year 2018 we selected the best regression models. The analysis of the acquired forecasting results generally proved our hypothesis about the growth of the average prices for the mobile communications services, expected in 2018 in the majority of regions. The analysis itself, the programs created for its implementation, as well as the results obtained, can, in our opinion, be considered as some contribution to the development of the theory of price competition in oligopolistic markets. The mobile services’ markets in many EU countries have a similar structure, and, with this in mind, the results of forecasting price dynamics obtained from Russian experience may be of interest to scholars dealing with similar problems in their respective countries, including the possibility of conducting comparative studies.

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Measuring the Level of Competition on the Serbian Mobile Telecommunications Market

Cited by 5 publications

References 6 publications

Oligopolistic Competition among Providers in the Telecommunication Industry: The Case of Slovakia

Oligopolistic Competition among Providers in the Telecommunication Industry: The Case of Slovakia

Information and communication technologies product market and protection of competition in the Republic of Serbia

Price strategies of mobile operators in Russia in the conditions of the global economic recession

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