UK Mobile Phone Industry Research Paper

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Your have to analyse the UK mobile phone industry (network operators, not phone manufacturers) and should answer the questions below. Each question states the mark allocation, indicating the importance of each question. NOTE: 5% of marks are for completion of the reflective statement.

1. You should do a 100 word introduction to your project.

2. Outline the trend in sales by the major mobile phone operators in the UK over the last 10 years, and analyse the structure of the UK mobile phone industry. To do this, you should;
? identify the main companies involved and their market shares.
? explain what type of market structure exists, with supporting evidence.
? comment on barriers to entry and contestability.
? explain, using economic diagrams, how price and output is determined by a typical firm (ie: one mobile phone operator/network) which is operating in the market. (Note that your market will be imperfect competition, not perfect competition. Thus, you cannot use supply and demand diagrams in this question).
(25% of marks)

3. Explain why mobile phone companies engage in non-price competition. Give examples of these types of non-price competition.
(15% of marks)

4. With reference to economic theory (hint: compare two relevant types of market structure in your argument) explain why there is a need for Competition Policy in the UK. Outline an investigation into mobile phone operators/networks by either the UK Competition Commission or the European Union (EU) and comment on the outcome of the investigation.
(25% of marks)

5. (a) Outline the causes of the recent 2008-09 recession in the UK. Using relevant economic theory show how recession affected the UK economy. (b) Using the relevant elasticity, explain how the recession may affect mobile phone operators/networks.
(25% of marks)

6. As part of your conclusion, assess the future of the major mobile phone operators/networks in the UK. Do you foresee future growth, stagnation or decline? (5% of marks)

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