- Volume 7 Issue 1
This study has classified development stages (Embryonic-Growth-Maturity) of mobile telecommunication industry based on Industry Life Cycle theory. There are two steps to be analyzed in this study, In the first step, cluster was investigated through cluster analysis using mobile density to categorize development stages of mobile telecommunication industry. In the second step, we compared on indexes of market structure, market efficiency and market performance to find out characteristics of each stage of development. The results are as follows. First, HHI is higher at embryonic stage than at growth and maturity stages, Second, ARPU(Average Revenue Per User) and RPM(Revenue Per Minute) are getting higher as the stages move on. Third, EBITDA margins, an index of market performance, is decreasing along the three stages. Finally, this study presents a clue to define the stage of development of mobile telecommunication industry and build a proper strategy for the market change.