The business dynamics in telecommunication market consolidation

Abstract

The Swiss telecommunication market is quite different from the markets in surrounding European countries. The Swiss Market is characterized by a very small number of competitors and relatively high and stable prices. The model in this thesis explains shows how the limited competition enables the mobile telecommunication service providers to keep prices up. This is due to a oligopoly market situation linked to complicated laws that discourage new competitors to join the Swiss market. Later in 2006, the Swiss federal council will pass the new televisor law, which will make it significantly easier to join the Swiss market. This will most likely result in lower prices for Swiss mobile telecommunication users

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