The contribution of the mobile industry to economic development in Romania

Abstract

Purpose

The purpose of this paper is to review the ways in which the regulation of the telecommunications sector has contributed to the economic development of the Romanian economy (as an example of a transition economy).

Design/methodology/approach

The paper takes a case study approach, considering Romanias's transition to a market economy, a description of the telecommunications market, and demand characteristics of the mobile market.

Findings

The paper highlights the significant role that has been played by the mobile sector in terms of providing basic telephony services and in developing innovative services. The paper links the growth in the SME sector to the growth in the provision of mobile services. The paper also discusses the issue of a failed incumbent operator and how delays in embracing tariff reform in an increasing competitive environment have hindered the ability of the incumbent to compete and reform its activities.

Research limitations/implications

The paper highlights the advantages that liberalization can deliver in a transition economy. The paper also suggests that allowing the incumbent to adopt a reform agenda ultimately is beneficial to the economy and the firm itself.

Practical implications

The paper suggests that liberalization measures produce significant economic benefits in transition economies.

Originality/value

The paper provides original material on the telecommunications reform process in Romania, as an example of a transition economy.

Citation

Bonciu, F. and Williams, H. (2006), "The contribution of the mobile industry to economic development in Romania", info, Vol. 8 No. 5, pp. 37-55. https://doi.org/10.1108/14636690610688088