Modeling Competition in the Telecommunications Market Based on Concepts of Population Biology

Based on concepts of ecology modeling and specifically on population biology, a methodology for describing a high-technology market's dynamics is developed and presented. The importance of the aforementioned methodology is its capability to estimate and forecast the degree of competition, market equilibrium, and market concentration, the latter expressed by corresponding market shares, in the high-technology environment. Evaluation of the presented methodology in the area of telecommunications led to accurate results, as compared to historical data, in a specific case study. Apart from a very good estimation of the market's behavior, this methodology presents a very good forecasting ability, which can provide valuable inputs for managerial and regulatory decisions and strategic planning, to the players of a high-technology market, described by high entry barriers.