Angelique Augereau, Shane Greenstein

The need for speed in emerging communication markets: upgrades to advanced technology at Internet Service Providers
Keywords: Internet Service Providers; Emerging communication markets; Evolving technologies
JEL classification:

Abstract: How and why do young firms develop distinctive skills on the frontiers of technology in evolving technologies? As awindow on these processes, this study analyzes the decisions by Internet Service Providers (ISPs) to upgrade the speed of communication. In 1997 this involved 56K modem technology and Internet Services Digital Network (ISDN) technology. We investigate why an ISP chooses to offer neither, one or both high speed data transmission technologies. Our findings are consistent with the view that scale of investment, local infrastructure's quality and explicit costs shape investment decisions by young firms in emerging markets.