Pricing and Uptake of Next Generation Networks

The world total of mobile subscriptions exceeds 6.2 billion (World Bank, 2013). Broadband connections have managed to penetrate a large percentage of homes. Enhanced communication is benefiting consumers and businesses in all facets of life. Access to computing, smartphones, and faster download speeds open up immense consumer demand. For instance, the Apple Appstore downloads exceeded forty billion downloads in Apple App Store (Bergvall-Kåreborn & Howcroft, 2013).

This rapidly changing domain of Information Communications Technology (ICT) has unique characteristics; it’s a networked industry - which means the overall utility for each user is increased when the number of users in that market increase. For example we all enjoy compatibility and versatility of PDF documents, USB cables and SIM cards – mainly because of the technology user uptake. These networked-industries industry consists of economic drivers that are absent from other industries – some drivers include first mover advantages, lockins, path depenence, switching costs etc. Imagine using alternatives to PDF documents and proprietary connectors for flash storage drives.

For a technology to successfully compete in these standard oriented networked markets will require it to employ multiple strategies based on its strengths and propositions. Strategies could include controlling installed base of users, intellectual property rights, ability to innovate, first-mover advantages, manufacturing capabilities, strength in complements, brand name and reputation (Shapiro & Varian, 1999).

Our research  appreciates the above-mentioned issues and frequent competitions amongst technology standards in a world we live in today.