The disruptive potential of PWLAN at the country-level: The cases of Germany, the UK, and the USA

This paper analyzes the impact of WLAN technologies for incumbent MNOs based on an empirical cross-country study of the players in the public WLAN-hotspot market using the theory of disruptive innovation and theoretical extensions for the industry- and country-level. The main research question to be analyzed is whether and why PWLAN has shown a disruptive or sustaining impact trend for incumbent MNOs in the hotspot markets of Germany, the UK, and the USA in recent years. The results imply that incumbent MNOs and new entrants have taken advantage of the opportunity provided by PWLAN, but the market success of both types of players varies between the countries analyzed. Incumbent MNOs dominate in Germany but not in the UK and the USA. The reasons for these country-specific differences were further investigated, and the results suggest that the analysis of disruptive potential in telecommunications needs to include country- and firm-specific factors, which are, again, largely influenced by the local regulation.

► The impact of PWLAN for incumbent MNOs in Germany, the UK, and the USA is analyzed. ► The main research question is whether and why PWLAN has shown a disruptive or sustaining impact. ► MNOs dominate in Germany (sustaining) but not in the UK and the USA (potentially disruptive). ► The disruptive potential analysis needs to include country- and firm-specific factors. ► The country-specific disruptive potential is influenced by the local regulation and MNOs.