Network asymmetries and pricing in 5G telecommunications

In this paper we consider network asymmetries and services pricing in 5G telecommunications with two period technology diffusion model. The time path of market demand, prices dynamics, the social surplus and profits companies that implement new telecommunications technologies are determined. The interaction of the users, telecommunication companies and telecommunication services costs for new 5G technologies are studied. Telecommunication industry equilibrium is considered with free entry and exit. We consider optimal path of the telecommunication companies’ profits, which represent the incentive to research and development (R&D). We investigate R&D expenditure on services and process innovation of 5G technology, assuming a different number of telecommunication companies undertaking R&D. We illustrate how diffusion of 5G technology and R&D are interlinked.