Mobile 5G technology investment timing decision makers willingness to invest

What is it about?

The model for mature 5G mobile markets, created and empirical tested, was performed in relation to 18 largest Europe mobile service providers, as potential decision makers operating across 33 countries. Results confirmed that selection of the technological investment time depends on companies’ strategic financial decisions and financial state. The performed simulations revealed the consequence of 5G technology investment for investor roles, clustered according to financial data within a 5-year period (2010–2014). The analyzed companies were assigned to roles of pioneers-innovators, pragmatics, followers, or laggards. Finally, it is assumed and argued that financial parameters indicate the willingness to adopt new technologies in a global technologically changing environment.

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Why is it important?

During recent decades, it had widely been agreed that technologies are one of the most important factors for economic growth. Due to this phenomenon, business enterprises need to identify the optimal timing of technological change in order to increase competitiveness, and create value of the company in an uncertain demanding environment. Analysis results confirmed that information regarding technological change is the same for all market players; selecting the time for technological investment depends on companies’ strategic financial decisions and financial state; and finally, parameters that influence the willingness to invest appear to be CAPEX to revenues, ROCE, EBIT, and EBITDA, which combine in various ways according to investor roles.