Abstract
In this paper, we propose an integrative framework based on dynamic models of the evolution of industries. The main arguments are illustrated using the case of mobile TV. One main assertion is that the value network of mobile data services is much more complex than that of previous “generations” of mobile services, in particular voice and messaging. The new environment requires a significantly higher degree of coordination and integration between more participants in the value net and a consistent constellation of technology, policy and firm strategy. Unless such compatible arrangements are in place, mobile TV will not take off. The paper develops these themes theoretically and illustrates them with a detailed case study of mobile TV in South Korea as well as comments on the situation in Europe and the U.S. The private and public sectors in South Korea were capable of producing conditions in which mobile TV could flourish. Even so, significant challenges remain to create a financially sustainable mobile TV industry. In contrast, in Europe and the U.S. major obstacles to the development of mobile TV continue to exist. Unless these obstacles, including problems with spectrum policy, are addressed, mobile TV may not be able to develop its full market potential.
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