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The public incumbent's defeat in mobile competition: Implications for the sequencing of telecommunications reform

机译：公众任职者在移动竞争中的失败：对电信改革顺序的启示

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摘要

Within a mere 5 years of market competition, the mobile communications sector in Taiwan has exceeded a 100% penetration rate, currently ranking near the top of the world. In an even more stunning development, the public incumbent, Chunghwa Telecom, has handed the leadership status to a market entrant, Taiwan Cellular Corp., despite phenomenal mobile communications growth. This paper explores the factors that hamstrung Chunghwa Telecom in competition against its rival entrants. Our econometric analysis substantiates the fact that handset subsidies are the most effective instrument for mobile firms to gain market share. Chunghwa Telecom, due to its public ownership status, was nevertheless prohibited at first from adopting such a marketing strategy.rnThe empirical results provided in this paper indeed pinpoint the importance of the sequencing of reform mandates in developing telecommunications: a prolonged privatization could help to promote competition in the industry. Public ownership makes Chunghwa Telecom vulnerable to political intervention and operational inefficiency, which is a barricade to performance and competitiveness for the not-yet-privatized company in a liberalized market. Taiwan's case presents an interesting deviation from conventional development theories, while it deserves scrutiny as it paves a shortcut to successful implementation of telecommunication reform in a timely fashion.
机译：在短短5年的市场竞争中，台湾的移动通信部门的渗透率已超过100％，目前排名世界第一。尽管移动通信业务取得了惊人的增长，但中华电信公司仍将领导地位交给了市场参与者台湾蜂窝公司，这是一个更加惊人的发展。本文探讨了阻碍中华电信与竞争对手竞争的因素。我们的计量经济学分析证实了以下事实：手机补贴是移动公司获得市场份额的最有效手段。然而，中华电信由于其公有制地位而首先被禁止采用这种营销策略。rn本文提供的经验结果确实指出了改革授权的先后顺序对发展电信业的重要性：长期的私有化可以帮助促进行业竞争。公有制使中华电信容易受到政治干预和运营效率低下的影响，这对尚未开放市场的私有化公司而言，是业绩和竞争力的障碍。台湾的案子与传统的发展理论形成了有趣的偏差，同时值得仔细研究，因为它为及时成功地实施电信改革铺平了捷径。

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