Barriers to entry and exit in the mobile service sector in Algeria

Abstract

The aim of this study is to determine the nature of the entry barriers and
the exit barriers in the mobile service sector in Algeria, this is because these
barriers directly affect in the structure of the sector , especially in terms of the
degree of competition in it, We found that Algeria's mobile service sector was
characterized by natural entry barriers associated with economies of scale
and capital requirements, as well as concentration on the research and the
development which is characterized by the sector especially on the level of
equipment and services. There are also legal entry barriers imposed by the
ARPT, which regulate competition and grant licenses…, The legal entry
barriers play a key role in influencing the degree of the competition especially
in reducing the entry of new institutions. The sector also includes strategic
entry barriers, particularly in the control of dealers on distribution channels
in the sector.
In addition to barriers to entry the sector also has barriers to exit, as the
sector is provides thousands of direct and indirect jobs, and the association of
the sector's institutions with other sectors, which is reflected in the various
offers to institutions, the sector is also subject to the licensing system granted
in person for a period of 15 years so that it may not be waived or the rights
resulting there from, except with the consent of the donor body which hinders
the exit from the sector .