A timing game approach for the roll-out of new mobile technologies

Abstract

When adopting a novel mobile technology, a mobile network operator faces the dilemma of determining which is the best time to start the installation of next generation equipment onto the existing infrastructure. In a strategic context, the best possible time for deployment is also the best response to competitors’ actions, subject to normative and material constraints and to the customer’s adoption curve. We formulate in this paper a finite discrete-time game which captures the main features of the problem for a two-player game played over a prescribed finite horizon. Our numerical results provide insights on the possible optimal tradeoffs for an operator between fixed costs and installation strategies.