Barriers to entry and exit in the mobile service sector in Algeria

Abstract

The aim of this study is to determine the nature of the entry barriers and the exit barriers in the mobile service sector in Algeria, this is because thesebarriers directly affect in the structure of the sector , especially in terms of thedegree of competition in it, We found that Algeria's mobile service sector wascharacterized by natural entry barriers associated with economies of scaleand capital requirements, as well as concentration on the research and thedevelopment which is characterized by the sector especially on the level ofequipment and services. There are also legal entry barriers imposed by theARPT, which regulate competition and grant licenses…, The legal entrybarriers play a key role in influencing the degree of the competition especiallyin reducing the entry of new institutions. The sector also includes strategicentry barriers, particularly in the control of dealers on distribution channelsin the sector. In addition to barriers to entry the sector also has barriers to exit, as thesector is provides thousands of direct and indirect jobs, and the association ofthe sector's institutions with other sectors, which is reflected in the variousoffers to institutions, the sector is also subject to the licensing system grantedin person for a period of 15 years so that it may not be waived or the rightsresulting there from, except with the consent of the donor body which hindersthe exit from the sector .