Co-Shaping of Governance and Technology in the Development of Mobile Telecommunications

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Co-Shaping of Governance and Technology in the Development of Mobile Telecommunications Co-shaping of governance and technology in the development of mobile telecommunications Master Thesis “Philosophy of Science, Technology and Society” Margarita Georgieva Supervisor: Dr. Barend van der Meulen Second reader: Prof. Stefan Kuhlmann 1 Twente University, Enschede, The Netherlands, 2008 2 Summary How to govern technology so that it brings maximum benefits and minimum harm to society is a question with big scientific and practical importance. The modern way to govern technology is that public authorities (government in general) can set up goals for technological development and the scientific and technical community would achieve these goals and also provide expert advice to policy makers. This hierarchical approach is based on the assumptions that development of technologies can be anticipated and it can be steered in a desired direction by rational decisions made by experts, as long as the main goals and priorities are set by the government. On the other hand, recent science and technology studies (STS) suggest that technological development is a contingent process depending on many (local) factors, in particular negotiations between various social groups and creative use of the technology – i.e. use that the designers of the technology haven’t anticipated. The outcomes of these negotiations and creativity are neither fully predictable nor always rational. So there is a tension between the modern concept of governance of technology and the contingent character of technological development. My goal with this thesis is to analyze this tension in case of a concrete technology, namely mobile communications. During the last 20-25 years mobile communications developed from a technical innovation to an essential infrastructure that penetrates entire society. Governance played essential role in this process, since no infrastructure can be build without organizing different parties, which means governance. So mobile communications are a good case study about how governance of technology happens in practice. My main findings in this paper are the following. When mobile communications emerged as a new technology, various forms of governance of this technology also emerged. The variety was determined by (local) political, economic and cultural factors. Next, the technology and its governance evolved together. Organized through governance, various actor groups were able to inscribe their vision and values into the technology. In this process some forms of governance proved more effective than others, since they “matched” the technology better. Furthermore, forms of governance which were not suited (anymore) for developing mobile communications became obsolete and eventually replaced by other, more suitable forms of governance. This process I call co-shaping of technology and governance. Over time, mobile communications and their governance evolved towards post- modernity. Post-modern technology is distributed technically and organizationally and it promotes post-modern values like pragmatism, combination of multiple social roles, pluralism and individuality. Contemporary mobile communications are certainly a post- modern technology. Post-modern governance includes many actor groups. It is very reflective and it is primarily network-based rather than hierarchical, but it is also pluralistic, so various forms of governance often co-exist. I have shown in my thesis that mobile communications as a post-modern technology can’t exist without governance, 3 but only post-modern governance can be effective for such a technology. Furthermore, because of its inclusiveness, dynamic reflection and ability to co-evolve with the technology, post-modern governance has less tension with the contingency of technological development than modern governance. 4 Table of contents Introduction....................................................................................................................... 8 Chapter 1 – Problem description and research questions ............................................ 9 1.1 Historical overview of governance of technology.................................................... 9 1.1.1 Modern governance of technology .................................................................... 9 1.1.2 Science and Technology Studies (STS)........................................................... 10 1.1.3 Problem description ......................................................................................... 11 1.1.4 Post-modern governance and CTA.................................................................. 11 1.2 Goals of the thesis................................................................................................... 12 1.2.1 Research questions........................................................................................... 13 1.2.2 Two sides of governance of mobile communications...................................... 13 1.2.3 Structure of the thesis....................................................................................... 14 1.3. Conceptual Analysis .............................................................................................. 14 1.3.1 What is technology .......................................................................................... 14 1.3.2 What is governance?........................................................................................ 16 1.3.3 Types of governance of technology................................................................. 17 Chapter 2. Co-shaping of governance and mobile telecommunications as infrastructure ..................................................................................................................21 2.1 First Generation (1G) Mobile Communications..................................................... 22 2.1.1 Comparative study of five countries................................................................ 22 USA....................................................................................................................... 22 Japan ..................................................................................................................... 23 Germany................................................................................................................ 24 Nordic countries.................................................................................................... 24 UK......................................................................................................................... 25 2.1.2 Analysis of development of 1G infrastructures and their governance............. 26 2.2 Second Generation (2G) Mobile Communications................................................. 28 2.2.1 Europe.............................................................................................................. 28 2.2.2 US .................................................................................................................... 33 2.2.3 Comparison between European and US governance in mobile communications ................................................................................................................................... 37 2.3 Third Generation (3G) Mobile Telecommunications ............................................. 39 2.3.1 Development of 3G infrastructures.................................................................. 39 Ambition of ITU for World-wide 3G Standard .................................................... 39 Early research and development in Europe .......................................................... 41 Development in Japan........................................................................................... 41 Further development in Europe and cooperation with Japan................................ 43 Developments in US ............................................................................................. 45 Battles at ITU and outside..................................................................................... 46 The harmonization of 3G standards...................................................................... 47 2.3.2 Analysis of development of 3G infrastructures and their governance............. 49 2.4 Conclusions and discussion .................................................................................... 51 Chapter 3. Co-shaping of market governance and mobile telecommunications as consumer product ........................................................................................................... 57 3.1 Pioneering mobile telephony – 1980s..................................................................... 59 5 3.1.1 Pricing trends and post-entry regulations ........................................................ 59 3.1.2 Pricing schemes - Calling party pays and receiving party pays....................... 60 3.2 First penetrations into non-business market - early and mid 1990s........................ 62 3.2.1 Pricing trends .................................................................................................. 63 3.2.2 Network coverage ............................................................................................ 65 3.2.3 Lock-in effects ................................................................................................. 65 3.2.4 Interconnection costs and agreements ............................................................. 66 3.2.5 CPP, RPP and growth of the market................................................................ 69 3.2.6 Roaming..........................................................................................................
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