Wireless Intelligence: Competition and concentration
The distribution of market power in the global cellular industry
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Competition and concentration: The distribution of market power in the global cellular industry is now available for download:
The Herfindahl-Hirschman Index (HHI) is a commonly accepted measure of market concentration and is often used by telecom regulators to monitor the distribution of market power and anticipate the effect of merger and acquisition activity on competition. Our findings show that cellular markets in Western Europe and the Middle East have higher levels of competition in comparison to other global regions. The majority of markets in these two regions have a normalised HHI below 0.1 which positions them as fragmented markets. In addition, over the past five years most of these markets have also shown a decrease in HHI, which indicates a reasonable disparity in market power among mobile operators and therefore intensifying competition.
