Classroom Companion: Business

Box 5.1 Competitive Dilemma
.
Figure 
5.2
 illustrates the competitive 
dilemma many mobile services operators 
are facing, using the mobile telephony mar-
ket in Norway and Sweden as an example.
Telia and Telenor are dominating 
mobile operators Sweden and Norway, 
with market shares (in terms of subscrib-
ers) of about 35% and 60%, respectively 
(per 2019). Telenor is a minority operator 
in Sweden, and Telia is a minority opera-
tor in Norway with market share of 19% 
and 33%, respectively. This leads to a situ-
ation where the operators have to instigate 
different strategies in the two countries. In 
Sweden, the strategy of Telia is to hinder 
Telenor to capture market shares, while 
the strategy of Telia in Norway is to cap-
ture as much of the market from Telenor 
5.3 · De-monopolization of Mobile Network Operations

---

66
5
5.4 
 De-monopolization of All Telecommunications Operations
In 1998, the EU opened all aspects of telecommunications for full competition. The 
process toward full deregulation had started already in 1987 by the Green Paper 
on the Development of the Common Market for Telecommunications Equipment 
and Services (Lando & The European community’s telecommunications deregula-
tion, 
1994
). One important requirement and a first step toward full deregulation 
was that the countries separated the telecommunications operator from the tele-
communications policy maker. Previously, the telecommunications operator (or 
PTT as it was called in many European countries
1
) had both roles. The earlier 
monopole operator was referred to as the incumbent operator.
1 
PTT = Post, Telephone, and Telegraph
as possible. The strategy is, of course, the 
same for Telenor: gain market shares in 
Sweden and protect its market shares in 
Norway. The two strategies are incompat-
ible, and the mobile services operator 
must master each of them.
. Fig. 5.2 A strategic dilemma between Telia and Telenor. The markets shares are based on 
2019 figures published by NKOM (Norwegian market) and PTS (Swedish market). (Authors’ 
own figure)
Sweden
Norway