Presented By:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Adesh Oberoi Ankit Gupta Bhaskar Joshi Mithunkaarthik Ravikumar Gaurav Bunel Nikhil Tuli Pravinkumar P Vidit Singla Vishnu Roy

 Mobile telephony developed in a slightly different manner in Europe. Sweden was an early mover with an automatic system in service in 1956. The national telecommunication authorities in Scandinavia started the standardisation work on the future analogue cellular NMT standard in 1969. A working group was set up and named the Nordic Mobile Telephone Group, the NMT-Group. It took more than ten years to develop the NMT standard and it was first introduced in Saudi-Arabia in 1981 and a few months later in the Scandinavian countries. The possibility of roaming in the Finland, Sweden, Norway, Denmark and Iceland since 1981-82 became a strong argument in favour of the NMT standard. In the early 1980s Department of Trade Industry appointed two network operators in the United Kingdom (British Telecom and Cellnet)

In 1983 third applicant for a license came in the UK named Racal the predecessor of Vodafone. Ericsson a major player in the business of mobile telephony as a supplier of Axe digital switch to Vodafone.

 In 1989, the European Telecommunications Standardisation Institute approved the specification of phase 1 of GSM. This ended the (pre-standard) effort in which essential patents were registered.

Philips owned the most essential patents in this period. However Ericsson, Alcatel, Siemens and Motorola intensified their patent activity in the following period (from 1992 onwards). These firms controlled more than 85% of the total GSM market in the early 1990s and Motorola owned most of the essential patents. Motorola, Ericsson and Nokia rapidly came to dominate the mobile telephone market with Siemens and Alcatel as other important players. (Bekkers, Duysters and Verspagen, 2002)

 The PTT (Post, Telephone and Telegraph Administration) was granted a monopoly on the provision of

telecommunication infrastructure and services since late 19th century.

Basic model world-wide = monopoly on equipment and on basic network and service provision (public

monopoly in Europe vs private in the US)

The natural monopoly doctrine: the industry enjoys large fixed costs whose duplication was neither

profitable for private investors nor socially desirable. Telecommunications was one of the societal benefits that economic development allowed.
European PTTs became large and powerful employers, often capable to subsidise other social

programmes.
PTTs had multiple roles as policy-maker, regulators, and operators. During this time, experiences in telecommunication performance varied among countries (e.g. France vs

Belgium, Greece)

 Radical developments in the electronics/computer industry and digital technology

lowered the costs for certain types of infrastructure, exposed the inefficiencies of PTT monopolies, and offered opportunities for market entry.
Increasing technological convergence between previously separated industries

(consumer electronics industry, telecommunications, and media publishing) created new types of value-added services.
Internationalisation of business urged national carriers to compete in attracting

customers wishing to establish multinational private networks.

In Europe, concerns were raised over creating a single European market for

equipment and services able to compete against the US and Japanese rivals.

 Privatization and Licensing of competitive

operators Interconnection and unbundling Price regulation in non-competitive market segments Introduction of transparent Competition regulation Universal Service and funding of social goals Removal of international trade barriers

Independent Regulator (NRA)

EU Competition Model

US

Tends to emphasize dynamic competition (antitrust approach) Narrow definition of services supported from industry funds More coordinated and horizontal regulation

Tends to emphasize static competition (regulatory approach) Broader definition of services supported from industry funds Differentiated but porous legal and regulatory framework
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Universal Service

Convergence

Turnover from telecommunications (EUR Millions)

Price of fixed telecommunications, 20002010 (EUR per 10-minute call)

Communications expenditure, 2010 (1) (% of GDP)

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 Represents classic government dominated telecommunication environment

Fragmented markets because of cultural differences

PTTs tend to coordinate activities related to trans-border communication

EUTELSAT Television and Radio programming

ISDN Integrated Services Digital Network

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 The mobile economy has both direct and indirect benefits it has contributed 390K

jobs and generated around 2.2% of European GDP in 2012

But this will suffer a sharp decline if steps are not taken now Mobile Broadbands are one of the routes that are being explored as to have a push in

the future
The financial pressure on European operators are contributing to falling investment

levels in European mobile, with capex declining

Higher capex means higher data speeds. For eg: US has higher capex and hence

faster data speeds than Europe

Despite seeing worlds first LTE deployments, LTE accounts for well under 1% of

devices in Europe while the number stands at 11% in US and 28% in South Korea
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Dhanyawad

Danke

Merci

Nandri

Arigatou Gozaimasu

Gracias
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