2002 Volume 10 Issue 4 Pages 19-37
In the field of international telecommunications where competitive principles are being rapidly introduced, alliance strategies are positioned as crucial factors in achieving competitiveness in the marketplace. The alliance activities in the recent years are very dynamic, causing significant changes in the market share held by the incumbents and new entrants.
The economic value of the alliance is recognized. To generate, maintain, and enhance the values of alliance, there are number of requirements that need to be addressed due to the diversity of international telecommunications business. In the discussion of market dynamics and regulatory policy, the issue is to clarify the framework of mechanism that illustrates the relationship between the economic value and the market share dynamics.
This paper discusses the major economic values that result from the alliance activities in the international telecommunications business. Furthermore, it discusses the factors inherent to the international telecommunications business that maintain and enhance the economic values resulting from alliance activities. It also describes the circulatory complementary relationship among variables which are multiple economic values resulting from alliances, service diversity, and supply and demand utilities that influence the variance of subscriber quantity. This circulatory complementary relationship will be shown as the framework of mechanisms that significantly impact the dynamics of international telecommunications market share.
